The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1899-05-02
TRUSTS AND TaR PEOPLE.

that 80 few of his remarks related to
trusts proper. With the view there
fore of giving a clearer idea of his
stand upen the great question we
give herewith an anticle on the sub,
ject in hand, which he has recently
written for the New York Journal
Col. Bryan says:
The growth Of industrial trusts has
been rapid during the last two years
that no intelligent person can now
pied ignorance either of their exist
ence or of the principle which con-
trolls them.
The trust is usually organized to mo
nopolizs the manufacture and sale OF
some article of merchandise. The
first question to be settled is whether
such a organization is an evil or a
blessing.
Monopoly finds an occasional deteR
der who argues that production upon
a large scale can be carried on more
economically, but this argument Is
not complete.
The trust cannot be justified unless
in can be shown, first, that it effects
an economy In production or
distribution; second, that the
consumer will receive a fair share of
the benefits in a reduced price Of the
product, and, third, that the economic
advantages Of the trust are sufficient
to outweigh the social and political
evils wrought by monopoly.
To establish the first proposition, it
is necessary to show that Improvement
In the processes Of production Will be
greater under monopoly than under
the competitive system, whereas it Is
generally understood that competi-
ton is the greatest stimulus to inven-
tion. The effect of rivalry is seen in
the effort of each producer to furnieh
to the public the most perfect article at
the lowest price. To accomplish this
end each firm seeks TO secure the
brightest and most skillful operators
and the most improved machinery.
Tt is not in accord with human expe
rience to expect this struggle to o
tinue when a monopoly has been Sc
cured.
1t must be admitted that q trust can
cheaper the cost of distribution by the
discharge Of it's travelling men. When
all factories sell at the same price, ano
all orders pass through the hands of
one selling agent, the commercial evan
gelist, like O.hello, finds his cccupa
ton gone and the hotel keeper mourns
for a sight Of his genial face and ready
cash. But if the money thus saved l.
simply added to the profits of the
stakeholder it brings harm rather than
advantage to the public at large. And
what assurance has society that those
in possession Of e monopoly would sur
render any advantage thus gained7
The very purpose OF such an organ
ization is to avoid competition, and
human nature Is Too weak TO with
stand the temptation to collect the Ut
termost taTthIng from the coueumer.
The natural result OF a monopoly is.
first, an increase in the price Of the
product; second, a decrease IN the
price Of the raw material which en-
tiers into the product; third, a de
crease in the wages of the labor EN-
ployed fourth, a decrease 10 the de
msnd for labor IN that industry, and,
fifth, a deterioration in the quality OF
the product.
That increased gain is the sole object
of monopoly is shown by the fictitious
capitalization of the trusts. The stock
Is, In many instances, Watered, and
then the corporation tries to re
aliz9 a sufficient dividend to raise the
sock to par, with the prospect of a
new imitation whenever the profits
will justify iE. In one instance which
came under my own observation So 600
worth OF stock became $13 600 by in
fation, and this was by no means an
extreme case.
A general rise in prices, caused by
an increase in the volume Of money,
stimulates production; but a sporadic
increase 10 price, due to the influence
Of monopoly, lessons the demand for
the article and for the labor employed
in producing it. Usually n of the
first acts Of q trust is to shut down
some Of its factories; this, in turn,
when many industries enter into trusts,
brings a curtailment of demand and
invites a further limitation of produc
ton. In the meantime those pro
ducers who cannot enter into comb
nation or share the benefits of trusts
become the helpless victims Of all trus e