The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-04-25

Receut Experiences OF the American
Steel and Wire Company tend to show
that the trust 10 neither out OF the
reach Of public opinion nor beyond the
control OF the great natural laws OF
trads II has been playing the monopoly
game for all that there ia in It. and the
results must be anything but gratifying
20 TIE holders OF its securities.
Thu concern. commonly known a. the
steel naii trust. had q pretty complete
control Of the market. II began forth
with TO mark up its prices. They have
teen doubled within no very long Pc
riod. Since the nrst of this year they
were advanced from 8 to > per cent. The
dividends paid by the company would
indicate . high rate Of PROFIT Wages
were advanced 20 per cent. and raw ma
tsriai has lately shown a decline. Dur
Ing all this period OF ascending prices
the company's excuse was that busi-
ness Was phenomenaliy active.
suddenly. . short time ago. came a
peremptory ana unexpected notice that
. large number OF the company's mills
would be shut down. throwing several
Thousand men out Of employment. The
reason given TO the public was "over-
production" II was said that stocks
were accumulatins. demand had fallen
on. and production must be restricted
corrsspondingiy. Hence an order that
carried CONSERVATION and the threat Of
poverty into thousands Of homes I'm
mediately following this came a general
reduction Of prices to the trade.
amounting to about rs per cent on the
highest mark reached. And dealers aud
consumers. most probably in company
with the Stockholders OF the trust, are
wondering what sort OF management
this IL. Under the circumstances 1t Is
not wonderful that widespread suspi-
cion exists Of manipuiatons for stock
jobbins purposes
The facts Illustrate the inherent
weaknesses of the trust. and It's subjec-
tson. after all. to the force OF oompeti-
tion. From the moment that the steel
nail trust put prices up to an unreason-
able hsure two influences were set mt
work. One Is the restriction OF demand.
Beyond certain point prices cannot
be raised without destroying the mar
ket. 1t IL unauestionable that building
operations were checked and that users
OF this particular product everywhere
determined 20 limit consumption to ae-
tusl necessities until prices were reduc-
ed. This hat the trus, In one vulnerable
place. for no matter what the price,
there are no profits where there are no
sales.
The other weak SPOT was the enoonr-
ssement offered to competition. Il be-
came evident 70 capital that there was
gced money to be made by under-elllng
che trust The raw material OF steel
wire and nails Is open to all purchasers.
When demand fell on. pTlces could no,
De maintained. Al least two eompe,l-
Ac~s OF the American steel aud Wire
Company began TO do business at cut
prlces With these two forces at work.
The trust soon found Its business In a
bad way. II has made the resent tire
u,sndeus reduction In prices in order to
geoover sronnd,
All parties have suffered by this poi
iey OF greed. The most to be pitled are
the innocent. the people who lost their
employment through no fault either og
themselves or OF the industrial eonds-
lions OF the times. But the trust DID
act escape scot free. i, has lost an I'm
mense amount OF business that II could
have had. Its affairs have been de-
ranged. 1t has become universally un'
popular, and II has helped composition
+, "a xyax-kansssous. Finally. IL has been