The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-06-03
VIEWS OF A TRUST LAWYER.
To be Successful Monopoly Must Maintain
Prices SO Low That the Public is not
Injured"
To the Editor:

10 the Editor:
(New York Wor,d)
Much confusion has arisen in the
minds of many individuals from the
indiscriminate use Of the word
trust" Strictly speaking there
are few if any trusts in
existence in this country at
the present time. Acquiescing in
the decisions OF the courts. certain
large corporations against whose
methods the courts pronounced some
time since abandoned their plans and
reorganized. The public are famil-
lar with these proceedings.
Other large corporations have
sought to create monopoly. The
governing motives have not always
been the same.
In some eases the object has zen
to advance and control prices for the
benefit of those in charge and owner
ships, and a corresponding pre- JUDGE
has resulted to those who were COM
PEELED to pay the prices fixed.
In other words. it is saiG. and prob
ably truly, that the single purpose is
to so control and manage the prop
erty and business as to secure the
lowest cost and expense i'm the trans
action of business. thus permitting
the minimum price to the purchaser
and still leave Il fair profit to the
producer
If the term trust" is intended to
include aggregations of capital.
whether controlled by corporations
or individuals, which secure monopo-
lies. then it will find few advocates
its managers absolute and private
control of its business, free from
public inspection or reasonable re-
stricton.
On the other hand, if one is to in
clude in the word trust" all large
aggregations Of capital, as many pub
lie speakers, whatever the motive. at
tempt, il would seem TO be unwise 10
characterize them as inimical to the
interests of the masses.
There is much to be said in favor
of them.
The volume of business is growing
so rapidly and the interests involved
are becoming so extensive that il is
impossible to keep pace with the
times and TO protect and promote
the business interests of this coun-
try without the aggregation of cap
ital. This country is fast becoming
the manufacturing centre Of the
world, and its resources, although as
yet probably in the infancy of discoy
cry, are being rapidly developed And
there is room for a prospect of still
greater improvement in this direction.
This has already resulted in the estab-
lishment here of the finest manufac-
turing plants in the world and an
enormous export business which is
bringing TO this country a great and
increasing amount of money. and in
giving employment. to thousands of
men at wages which are large in
comparison with those paid in for
eign countries for similar services.
AS an illustration, the constituent
companies of the Federal Steel Com
pany and the Carnegie Company alone.
employ not less than sixty Thousand
men. These results could not he
produced with small capital.
While it might seem at first blush
that great power is given to a cor
poration in control of immense CAPT
tai. il will be seen on slight rehec-
ton that the capital is really more
if it were possessed by an individual
or partnership, for it is represented
by stock. and this is or may be i'm the
hands of large number of individ-
uals. The number of stock holders
Of the Federal steel Company at pres
emf is about six thousand.
There are many other benefits to be
derived from large aggregations. The
cost of production is or should be re-
duced to the minimum. The best
improvements and devices are used
whatever the expense. The best tai
emf is employed and the rules Of civil
service are applied with the greatest
care and best results. The executive
expenses are comparatively low. The
cost Of transportation is largely re-
duced by manufacturing at the near
est point of delivery. The facilities
for the development and improvement
of all lines of business are increased.
In the case of companies already
mentioned a known market is estab
lished for ore. coke and coal and the
manufacturers are equally benefited
because they are certain of an ade-
quate supply of the best raw mate
rails when required. The same argu-
ments apply to the constituent trans
portation companies on land and
water.
The great opposition by many to
large corporations not only results
from the indiscriminate chalact RI
ton INDUCED in, but for the reason
that their managers too frequently
disregard the Obligations of their po-
sitions.
Sometimes, for stock obbing pur-
poses, representations or misrepre-
sensations are made which affect
temporarily. at least, the selling price
of stocks. and the investor suffers a
loss and therefore becomes pfeiudic-
ed. This may be so whether he has
relied on the statement of some one
connected with the corporation or
those of a stock jjobber pure and
simple. He does not stop to consider
that in cases of speculation one must
lose if the other gains in the same
transaction.