The Portland daily press., 1900-06-02

E4%@st<sfAAI ~ NtAN|@>*~%~N|~-t =
lower prices 10 consumers. But 10 is
alleged that the rconsumcr does not re-
ceive the benefit Of trust economy 20
which he IL equitably entitled under this
argument.
II the Incorporated milling company TN
price and sells you -four nc Its own price.
there being no other mill, 10 always buys
your wheat rs low a. % can and sells
you -four as high as IL can. IL pursues
the plan OF buying as cheap as tt can ana
selling as high as 10 can, because IL Is
good business, and applies Its profits 70
Improving its plant 50 as TO pay large
IL Is easy 10 say that the consumer gets
the benefit but the producer and the
consumer generally get more benefit
when another miller comes to town and
begins TO do business In competition.
But when the new miller and the OLD
milling company combine the last state
Of the producer and consumer Is worse
than the first, for the new miller and me
old milling company must make up Tor
the. indiscretion of competition.
3. Another advantage Is said to be that
OF a more perfect product.
This may be true Theoretically, but IN
practice It ID said that control OF the mar
ket permits economy In quality, which Is
often taken advantage OF 80 far as con-
troll Of the market will permit:
3. Another advantage IL alleged 70 be
better wages and more constant employ
ment.
This Is denied. II Ii said that profits
arising from admitted economies and re-
sulting In large dividends on watered
stock do not reach labor in the form OF
high wages as q rule.
IL Is true that wages are generally high
er than ever before, but wages paid by
trusts are not rs q rule higher than
sRnfnR " md not hfRn "a
trust profits might warrant.
While labor has It's unions, 10 cannot
control the law of supply and demand OF
labor rs the trust controls the law OF
supply and demand Of commodities.
scarcely be said that policy which closes
and obliterates factories gives costnnt en-
ployment to labor. Ii Is probably true
that IL gives more steady employment TO
the persons employed, but one OF the ob-
jects Of combinations Is economy OF labor
among other economies.
4. Stability of price to the consumer is
urged a. another advantage, but whether
this Is an advantage or not depends ON
the price.
A price gagged just low enough 10 pre-
vent public discontent and JUS high
enough to prevent competition does not
appeal to the public as an Indispensable
advantage.
OVERCAPITALIZAT
In urging advantages by reason OF COM
bination, nothing is said OF the custom
Of overcapitalization.
A committee was appointed by the New
York assembly in 1897 to investigate
trusts, and in that part Of their report
bearing upon overcapitafization they
say; -
In one case corporate assets acquired oy
an officer Of the combination for the sum
Of $3.50, 600 were capitalized overnight In
the new combination by the Issue OF GER
tificates Of q nominal value OF twice that
amount less ID per cent.
Other corporations organized for the
distinct purpose Of absorption ny tine
combination ON the basis Of a stock issue
Of a nominal value of $S00, 600 were
simultaneously recapitalized in the com
bination by an issue OF nominai snare
yalue OF about $i4, 000 900.
Corporations representing in the ag-
ereqate share issues of less than ~ ,uO0, OOO
were recapitalized In the combination
by nominal share Issue OF s5o,UO,Uo,
less rebate of Is per cent. :.
In another case live assets were valued
at about s. 900, 00U and maue the basis OF
an issue Of about -, 00O, 00U OF stock, the
difference being made up IN the assumed
yalue of good will, !" brands" and
'trade-marks.'
such stock issues in many instances
represent capitalized destruction and abb
sorEtion of competing Industries.
Capitalized Capitalization.
1 Capitalized prospective earning capa-
city"
Capitalized wind and capitalized water.
Capitalized live capital and capitalized
dead capital.
The preferred stock pays dividends.
The common stock in most cases seesaws
up and down from day to day, subject
to market caprice, till 1t drops below zero
and Is past resurrection.
1t is perfectly apparent that II man
draws profit upon half OF pie no need
not care into how many shares the pie Il
divided. Ii each slice or share Is labeled
with value which 1t does not possess,
but upon which he draws dividend, 80
much the better for him.
The stock-issuing business consists IN
labelling the pie as IL 1t were stuffed with
diamonds and dividing II into shares.
There Is only so much pie, no matter how
many shares you dividett into.
FEDERAL ANDSTATE AUTHORITY
1. There are those who regard trusts
as rapacious monsters.
2. Others who look upon them as un-
avoidable and as part OF our national or
ganic development, believing that they
are the result Of natural forces, and, un
checked, will regulate themselves.
8. Others approve of them as results OF
general tendency toward centrallza-
| ton, but think they ought to be con
trolled by legislation.
4. The radical socialist favors trusts In
so far as they tend toward the national
ization of private property :,
. H.. ia In