The San Francisco call., 1899-12-07
ABOUT TRUSTS.

L
his message betrays a condition OF stirring
anxiety on his part in regard to that issue,
which is assuming such proportions in our domestic
politics He considers the existing law, and joins
Mr. Cleveland in asserting the necessity for CO.
operation between Federal and State statutes the
subject.
The common law, unaided by any statute, covers
all methods in that in restraint OF trade
But il is believed that there features in the work
ing OF some trusts that not obnoxious to that
feature OF the common law. Ii such there be- their
only limitation must be by statute. II they
limited by prohibition they otherwise ire
strainable While the President suggests that the
aminations now being made by the Industrial Com
mission created by the last Congress will throw some
light the subject. he makes no specific recommen-
dation Tor legislation but shifts the matter to the
shoulders OF Congress
The point at which the operation OF trusts is per
haps most severely felt by the country not touched
upon There may be a large number OF factories en-
poyed in the line OF production scattered all
the country These combine under a common
board OF trustees and issue stock 10 represent their
value usually in excess of it. The trustees close half
thirds OF the plants and confne production to
the remainder The result is that the labor employed
in the obsoeted plants, labor skilled in that form OF
production, is OF employment. The economies
thereby effected may be an important profit 10 the
trust Rivalry and competition abolished. Ad-
vertising OF the article produced and the pushing
OF It's sales by travelling drummers are made unneces
sary and the cost OF ioremen and administration is
saved all efectng large saving that goes in div-
dends TO the trust stock. This process may not be
accompanied by any rise in price to the consumer
Indeed there may often be a cheapening to the con-
sumer. But the workmen OF the dead plants many
ness The travelling statesmen are discharged and
the money that distributed to the community as
wages and salaries goes into dividends to the stock
holders. Frequently, too. the plants have furnished
local market for material II the article be glu-
oose high wines oatmeal or other cereal foods, it
will be found that local agriculture the plants
has adjusted itself to supply the raw material The OBJ
soliciting OF the plants Injuries the producer OF the raw
material 70 the extent that il removes market once
enjoyed and increases the of marketing his crop
to point OF consumption distant While this
loss to agriculture is gain the trust and adds
nothing its dividends. it is keenly felt by the
farmer.
These are the points at which the trust inficts a
community harm without any visible compensation
careful analysis OF the local opinion, as expressed
by the local press in communities where trust COM
bnation has silenced oatmeal and cereal food mills.
glucose factories, high wines distlerles lnseed oil
mills and similar manufactures, demonstrates that
these the elements in the system that the
most friction and complaint. They the elements
cf portent in the existing industrial conditions II
the aggregate the country is prosperous with vast
and rapidly increasing commerce, but the prevalence
OF these combinations. which no doubt have wonder
fully economized production, has distributed the
profits to fewer people.
To sltow the difficulty OF dealing with such sub
jeot it is necessary only refer the conditions
upon which the increase in our foreign trade may be
largely attributed. An inspection OF the statistics
shows that that increase has not been attended by
rise in prices. Throwing out the metals, which
have risen all over the world equally so that
metal production enjoys no advantage in
respect of prices, vastly increased volume
OF exports has been at lower prices than were
obtained on a less volume This means that we have
outtraded the world by undersellng the world. In
searching for the reason that has enabled US to do
this there be doubt that it is mainly found in
the economy of production due to the trust organi-
zation of scores OF our leading industries SO we
have on the one hand gratifying increase in our ex-
port trade, and the other painful obsoleting Of
labor at home Reconcilement OF the two conditions
requires a long period OF readjustment resembling
that which had to follow the general introduction of
labor-aiding machinery.
No more difficult question has engaged the atten-
ton OF modern civilization than this and Congress
will prove itself the wisest Parliament that ever met