The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-07-19

Of Its own decay, and that many IL not
most of these combinations will pres
emily fall to pieces Of their own weight
and dissolve by their own weakness is
an opinion held by many thoughtful
people. Events have done a good deal
to justify it. The most striking con-
frmation is found In the dissolution of
the National Wall Paper Company.
which has been regarded as one Of the
safest and most impregnable of the
trusts.
This concern began nearly eight years
ago, with control OF considerably more
than one-half the entire production Of
the country. 1t was a combination Of
twenty eight private concerns, and was
capitalized at sso.oOo,OO0. 1t had abun-
dant funds. and field quite as easily
controlled as that of the majority of
trusts Now 1t has. like Its own prod
uct. gone to the wall 1t Is announced
that many of fine factories hitherto con-
solidated in the trust will be bought
back by their original owners for pri-
vate operation. while others will be dis
posed of at public auction.
The important facts in the case are
two. First. this was no ephemeral af-
fair. It had abundant time in which to
develope the inherent strength that is
supposed to reside in the trust princi-
pie of operation. For eight years 1t has
been In the field; and II success was
wanting to 1t, then It may be concluded
fairly that success was demonstrated
impossible. There was no mismanage-
ment and no misuse OF funds. The Ma
tional Wall Paper Company simply
found out that IL was engaged in a los
ing business. and has given up the
fight.
The controlling fact, however, is the
reason frankly announced for its III
fortune. This is the competition Of out
side and rival concerns. The trust
simply could not hold its own against
them. II could not buy them all out.
for there was no end of that It could
rot meet their prices and pay dividends
on its capital. 1t is fairly vanauished
by those very forces OF competition that
TIE trust Is supposed TO stife. And
thereby hangs a tale.
I, Ia only under certain conditions and
within certain limits that the trust can
drive out competition. 1t can do IL
where II has monopoly of the raw
the secret OF the might OF the Standard
on Company. II II ala not own SUBJ
stantially all the crude oil supplies
known In this country. II would not
have smooth sailing or big profits II
car do II where the business in which
It IL engaged requires an enormous and
great iron and steel trusts To dupi,-
cate their machinery and obtain the
use Of their processes would require
millions Yet even then they are not
fof,ined There Is strong competition
iE the steel trade: and even a business
SO dIrteuit % engage In as the refining
Of crude sugar has found capital enough
to keep the sugar trust always watch
fGl and most ~ the time at war.
The truth Is that the economy % pro-
erection on large az compared with a
small scale Is not universal There are
limits 20 the doctrine, In certain in
dusir.es the difference amounts 10 very
little. because there are no hy products
10 he utilized prontahly. In others the
dlairuty 81 efficient supervision In.
cresssE 50 enormously with extension
that the 'srse plant Notwithstanding its
superior facilities for economy. actually
D., ONES more wsstesul than the small
one. where the managers eye can take
IN every desaa and know that no labor
is shirked ana no material wasted.
Given an industry in ~htch the raw
material Is not a monopoly ana the nro-
cessss do not rest on patent rights or
require pouicrous machinery ami MIL
hon dollar plants. and the sword Il
competition has as keen an edge az 4
ever wore. The small manufacturer no
does not sit down 10 vent his woes upon
the air. who does not neglect his bust
ness while bewslling the trusts. who
knows hts trade thoroughly. who studio.
his neld and fits hts product TO It. who
relies upon his own energy, shrewdness
and oversight. is able TO hold his own
| against the combinations A. the 81.