The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-02-20

point out in general way the direction
along which, in its Judgment, legislation
should proceed. The actual drafting OF
the legislation is worthy task for the
best minds of the country.
The position which the Post-Intelli-
gencer assumes and wherein It differs
from the men who controlled the Chi
cago conference. as well as from its
critic. Mr.. Wolf, is that II would be we'll
TO try and deal with the trust problem.
pressing on the people OF the country,
by the use Of the powers in the federal
and state governments which they at
present possess before taking the radical
step Of completely changing the whole
form Of our government and remodeling
the constitution Of the United states.
In accordance with the desires of
small but noisy faction OF political nos
trum vendors.
AS far as trusts are concerned, there
is no mystery about their cause or ORR
gin. neither is the United States the
particular country where they most
flourish. They are as much phenom-
enCn Of the economic development OF
free trade Great Britain as of protection
America, as common in republican
France as In imperial Germany The
principal difference seems to be that in
European countries the phenomenon IS
being closely watched by governments
and economic students. with a view TO
learning whether II is to be treated as
natural development along the line Of
economy In production, and thus to be
left to work out its natural end. or
whether it is prospective evil. TO be
discouraged and repressed; while in this
country, and in this alone, trade COM
binations are promptly denounced by
issue hunting politicians, and every OPP
portunity Is taken to create and keep
alive public animosity against them.
with the sole idea of making political
capital out Of an economic subject.
AS a matter Of fact, the combinations,
which are by the politicians all roughly
classed together and all denounced as
Ubiquitous. are innumerable. Some Of
them. no one can deny, are really benef-
icent, while others invite and should
receive the. most repressive legislation.
OF the kind which should be encouraged,
or which. at least, should not be arbi-
trarily repressed by the strong arm OF
the law, is the recently organized COM
bination of the Clarke county fruit
growers in this state, designed for the
express purpose of economizing in the
handling and shipping of their product,
and to keep Its price up to a standard
which will give a fair living return for
the capital and labor invested in the in
dustry. This is the trust idea, pure and
simple. and save In the magnitude of
its operations. the Clarke county fruit
trust differs in no essential from the
steel trust. or any other combination de-
signed to control the product of any
industry in any given section.
There is also the gigantic trust de-
signed to. and which does. monopolize
the entire product OF any particular ar
ticle Of universal consumption. This Is
the trust proper. the legitimate object
OF repressive legislation. Happily. so
far, this country has produced but one
example.
development of*a third class OF trusts.
and they are the ones which have OBJ
tanned the largest share of newspaper
notoriety. These may be designated as
the stock -jobbing trusts. the primary
design In the creation of which is 10
relieve the creduious investor OF his sur
plus cash. Promoters buy out a num-
Der OF going concerns OF good standing
and reputation In the same line OF bus
mess at an extravagant price. capital
ize the resulting combination at figures
very much higher than the property
cost. and unload the stock ON the In
vesting public. II Is safe to say that
all the trusts Of this kind are doomed
soon or late TO fall 20 pieces from the
weight Of their enormous overcapitai-
iEation, large portion ~ which is rep
resented by bonds. the interest on which
must be paid. During prosperous times
they can survive for while. "a the
demand for many manufactured articles
Ia greater than the supply. and mills are
far behind with their orders But with
the first breath % adversely they are
bound 10 gc down TO destruction. when
the day OF sharp competition comes they
cannot stand against the concerns op-
Grated by the men who own them. AMI
not burdened with enormous interest
charges on fictitious capitalization, The
consuming public requires no protection