Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-09-22
EUROPEAN TRUSTS
Rts
Prof jerks Preliminary Report on
theatSubject.
FLOURISH IN GERMANY AND AUSTRIA
Greatest Number Of Combinations
in Former Country.
LESS GROWTH IN FRANCE

Professor ]. w. jerks, who has had
charge of the investigation into the subject
of trusts for the United States Industrial
commission, has made preliminary report
of the commission on European trusts.
Professor jerks went to Europe nearly
three months ago to look into the growth
of Industrial combinations and will make
an exhaustive report on this question in
time to have It submitted to Congress early
In the coming session. His preliminary re-
port is interesting as 1t shows that the COM
bination Of industrial interests has been
going on in Europe as in this country, and
In many cases very nearly the same meas
ures have been taken to control such COM
binations. It shows that combination is
the order Of the day in all the great COM
mercial nations-England Germany, France
and Austria 1t shows that this tendency
exists, apparently as a commercial neces-
sity. and that no government and no politi-
cal party Is more responsible for them than
Is any other.
There seems to be no popular excitement
in England, the report says, on the sub
ject of trusts, although 1t is evident that a
good many combinations have been formed,
and the tendency to their formation Is on
the increase. more having been formed in
the last two years than in any correspond
ing period preceding While there is a lit
tie talk of trusts or of combinations there
is a great deal of talk also Of the abuses
of the corporation law, and there is at pres
ent before the house of commons a govern
ment bill amending the corporations act Of
1862, so as to prevent these abuses. Pro-
lessor jerks says 1t Is interesting to note
that the abuses detailed in England at so
great a length would appear to be very SIM
liar to those enumerated by the Industrial
commission, and still further that the RENE
dies suggested in England agree in good
part with the remedies suggested by the
industrial commission, though in some lines
they do not go SO far.
Publicity the Real Remedy.
In England publicity is regarded as the
real remedy for the abuses of Industrial
combinations, and many influential men
there think the government can go no fur
Their than to secure publicity. Prof jerks
had not received the names Of more than
fifteen twenty great combinations In
England when he made his report. He said
the causes for the formation of a combi
nation In England seemed to be substan-
TALLY the same as in the United States. In
the first place they all speak OF COMPETE
ton severe that they were all losing
money until the combination was entered
say that a combination would give them far
greater strength in their contest with
their workingmen. IT is expected that a
combination will be source of saving in
the services of large numbers of travelling
men have been dispensed with, the cost of
superintendent has been lessened. In cases
In which an industry has been handed
down for several generations and the man
agement has been careless 1t has been found
that large numbers of workingmen could be
dispensed with. This seems to be some
thing which is. rarely found in the United
States, but is quite common in England
owing to sons succeeding their fathers in
the same line of business. The work could
In great many cases be better distrib-
uted among different plants, 80 as to effect
a saving. In, the combina tons which have
been investigated little has been said about
the saving in freight in virtue of the fact
that shipments can be made from the near
est plant. Freight determinations In the in
terestS OF the largest shippers were not
complained Of generally, but he had heard
one complaint of that kind. Some of these
combinations have a practical monopoly.
Others have from 50 to 80 per cent of the
entire output.
Similar to the United States i'm Austria
Prof. jerks says the making and admin
istration Of the trust laws of Austria can
be compared directly with the United States.
The movement toward the formation Of in
dustrial combinations began there soon
after the industrial crisis of 1873. The most
common form of agreement there is one
which fixes the amount of production for
each one of the members of the cOmDIna-
ton. Sometimes the agreement inciuaeS
the fixing of the selling price by the CEN
trail committee
The movement for the formation of trusts
in Austria has been accelerated OF late
years, until at the present time nearly all
of the important industries are working UNI
der some form of agreement more or less
definite In many cases these agreements
have led to an increase in prices, although
il had not been enough to enable the mem
berS of the pool to realize enormous prontS.
hnt han vDolr -
as the result OF very great competition,
which had been carried on to a rulnous eX-
tent. The result of the combinations mas
been that fair profits have been realized.
There has been considerable feeling against
the combinations because they have raised
prices. In Austria the courts have held
that these industrial combinations are tlle-
GAL the law OF 1870 providing that combi-
nations for the purpose of increasing prices
to the detriment of the pubic are illegal.
The courts refuse absolutely to enforce the
| contracts among the members OF the COM
binations on the ground that the contracts
themselves have tended to increase prices
to the detriment of the public.
These decisions have been regarded as a
severe check to industrial combinations in
Austria and other forms of combinations
are under consideration there In some
few instances they have followed the ex-
ample of similar combinations in the United
States. have organized as corporations and
have bought up the separate plants, thus
forming single coFpoTatloH.
business men in Austria do not think the
corporations that have formed pools will
go into the form Of corporations, as such
concerns have done In the United States,
for they reason that they do not want pub
licity, which is required by the law in Aus
tria If they should combine. Then, too, the
taxes of corporations are much higher than
on private individuals. Owing to the care
full government supervision it is much more
| difficult for corporation to conceal its ac-
tual profits and the actual condition of its
business from the tax-gatherer than it Is
for the private business man. For these
reasons the corpora ions of Austria are in a
peculiar position. They cannot enforce con-
tracts between themselves when they are
in the nature of combination, and there
are reasons why they do not want to con-
solidate into single corporations
The sugar combination In Austria, Prof.
jerks says, includes practically all of the
sugar refineries and also practically all of
the raw sugar producers; that is those who
make the raw sugar from the beets, but It
does not include those who raise the beets.
Each refinery ms this combination furnishes