The evening times., 1900-06-29
TALKING OF TRUSTS.
Mr. Purdy Says Tariff Protection
Should he Withdrawn

should BE Withdrawn.
NEW YORK. June 2e.-Trusts was the
subject of discussion by the American As
sociation for the Advancement Of Science
at their meeting in this city yesterday.
The Remedy for the Evil OF Trusts-wlth
Special Reference to the Tariff" was the
subject Of a paper BY Lawson " Purdy-
He said in part:
The solution Of the natural monopoly
problem is in public ownership and opera
ton There is 10 hope OF purity in poll
tics so long as natural monOpOlies remain
in private hands
Industrial trusts engaged in business
naturally competitive are merely large
corporations, aud the State has no more
right TO restrain or restrict OF to require
publicity Of accounting than it has to make
these demands on any other merchant OF
"ageWorker. Publicity of accounts Is in
compatible with competition.
Nearly all Industrial trusts are aided by
the tariff. and are enabled to extract high
er prices from domestic consumers than
from foreigners The tariff privilege is
most easily reached, and can be most east
~ withdrawn There are hundreds Of
trusts which should be deprived Of tariff
pIOltCLlOu- ItTuGpS tle pest example OF
these is the Tinplate Trust"
Prof. George GunJOn read a paper on
Trusts before the American Physical
Society. in which he said trusts were sim
ply economic instruments for the doing
OF certain kinds Of work He said they
were a natural result and we're formed
In accordance with the principle " eco
nomic utility Continuing. Professor Gun
ton said
The general tendency Of the trust
movement is 10 utilize scientific devices
and superior organization, and in one way
or another. sometimes many ways. ulti-
mately divide the benefits Of the inven-
tion and organization with the public.
Although this is denonstrable. there is a
tremendous misgiving regarding these cor
pOratiOns- If some OF the very large ones
could be definitely selected as trusts It
is more than probable that public opinion
would demand their sacrifice as an atone
ment. Il we probe 10 the bottom we
shall find what the moral sense OF the
people really opposes IS not corporate
enterprise. but monopoly.
1T is commonly asserted by certain
persons. now much in evidence. that all
monopoly is bad, that a good monopoly
would be Ike a good morarchy-uuthink-
able This may be good politics. but IL IS
bad science Il is no more true that all
monarchies are bad than that all republics
are good Neither is If true that all mo-
nOpoly is bad. all competition good Wheth-
er a monopoly is good OF bad. whether IL
VIII tend constantly 10 distribute the
profits and create new margins By improy-
ing methods, vii! depend upon how the
monopoly is acquired
In the case OF the street railways gas
companies. etc. which operate under
franchises excluding competition. the Gov
eminent woul cprobabIy commit the few
est blunders and least violate economic
laws by acting on two simple propositions
First. make the corporations contribute to
the public revenues BY means Of a fran
ehise tax on the basis Of real estate: sec
ond, by selling the franchises TO the high
est bidder. the bidder not 10 offer money
Tor the privilege. but the lowest rate OF
tariff 20 the public thus sharing the bene-
hts With the taxpayers through a fran
ehise tax and with the travelling public
through lower fares"