Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1900-03-29
The Trusts.
possible.

| ms SO-called trust question Is
"corkern The man who succeeds il
solving it, even to his own satisfaction
will deserve a soft couch and balm,
surroundings for the rest of his earthly
career. 1t is new question. Fact
in regard to it are hard to get at anC
open to dispute. The trusts naturally
do not take the public into their con
fidence. The public is prcjudiced
against the trusts, and would not be
lieve anything they might disclose
about their business.
One fact is certain. Trusts are in
creasing. A few years ago we only
heard of the Standard Oil trust. Then
came the sugar trust. Within the past
few years, trusts have sprung up
rapidly Now, about everything that
is mined or grown or manufactured OF
transported or sold is controlled by a
trust. They are getting hold Of every
thing and the article that is not sub
iect to the manipulation OF some trust
or other in some stage is the excep-
ton.
The original trust is no more. 1t
was a combination of independent
dealers who pooled their interests, in
stead of competing, and allowed a
board of trustees to conduct their bust
ness under fixed schedule and fixed
rules, with a certain fixed division of
the profits among the respective parti-
cipants in the deal. 1t was as though
all the meat dealers in a town gave up
the idea Of trying to run each other
out Of business by cutting prices and
formed union, agreeing to let two
or three of the dealers run all the mar
kets in the interest of the whole. The
rest could 90 a-fshing until the day
came for declaring dividends, when
they would be on hand for their share.
This plan did not generally work
very well. There would be dissatis-
faction with the trustees, or with the
or with something else, and
before very long the trust would break
up into its component parts and they
would go on as in the first place. Then
such trusts were easier to reach by
legislation Of a hostile nature than the
new brand.
The modern trust is illustrated by
again taking the example Of the meat
dealers'in a certain town. Instead OF
temporarily and each party
retaining the ownership of his proper
ty, one OF the dealers buys out all the
rest. If he hasn't got money enough
alone, he issues stock to those of whom
he purchases, to an amount equal to
the value of their property, or some
times more. He usually offers them a
good bonus to sell, and ne can afford |
to, for he makes the meat buyers pay
ID later. If the owners won't sell in |
this way, he interests outside capital |
lists and investors by showing them
how profitable the business viii be, |
when run under single management. !
When the properties are acquired, they |
are merged in ownership for good. !
Such of the markets as are nicely To-
Gated and can be run economically are |
run as before. The rest are closed. |
Then prices are put up. That is the |
real purpose of the deal, OF course, !
and it is only by accomplishing it that
he trust can be made a permanent
The stock must be made to
1ay the guaranteed rate, current ex-
)enses must be met and it is always
'ery NICE to have a good surplus. So, /
m our Illustration, the price of meat
yoes up.
But will not competition disturb all
his ? someone asks. 1t will have TO be
considered, Of course. When the
'rices 90 up and extraordinary profits
ire suspected, there is danger that
,ther dealers will start in business.
But the trust has great advantage. It's
markets are in central places and the
FOODS and service are of the best. New
apital is timid about entering the
Ield. The small dealer, with limited
means, knows that his chances of sue
ess against the combine are small. lie
annot crush it. lie can only divide
he natural patronage. lie knows. too.
hat as soon As he goes in, the trust
elbows will lower their prices long e.
nough to Tail him up and when that is
one put them back again. As long
5 the trust is satisfied with profits
hat are not toe extortionate. il is mas
er Of the situation and the public is
.elpless. It is possible, of course, that
'owerful competition might come in i'll
he dividends came too frequently. but
he trust is always ON the inside and