Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-03-01

lists among witnesses in most lines of in
dustry as to the size of plant that can
cure the most economical division Of labor
and use of by-products without making
adequate supervision too difficult.
=. Freights.-Where the product is bulky
so that the freight forms an essential ele-
ment of the cost, much can be saved by
an organization which has plants ostab-
lished at favorable locations in different
sections of the country, SO that purchasers
can be supplied from nearest pants, thus
saving the cross freights, which. of course.
must be paid where customers are sup
piled from single competing plants.
3. Patents and brands.-W here different
establishments. selling separate brands, are
brought together into one conlbinat i0n. the
use of each brand being made common to
all, great saving is often effected, since
the most successful can be more efficiently
exploited. ..-..--.
The control also of substantially all pat
ents in one line of industry sometimes en-
ables the combination to secure a monopoly
which it could not otherwise secure
4. Single management--The great cons
pleteness and simplicity of the operation of
a single great corporation or trust is also
a source of saving. Where each of the diff
ferent establishments which are united had
before president, a complete set of Off
GERS, and a separate office force the COM
bined establishment need have but its one
set of chief officers, and subordnates at
lesser salaries may take the places of the
heads of separate establishments In this
way material saving is often made in the
salaries of the higher officials: while con-
siderable reduction of the total office force
is also possible. 1t is likewise true that this
same form of organization enables set
of travelling statesmen to sell all of the
brands or all classes of goods for the sep
arate establishments and in that way much
labor is saved. This is considered a great
saving from the standpoint of the producer
and consumer. but is likewise naturally
considered an evil from the point of view
or those who are thus thrown cut of work
1ota al,
distribute the work among the different
plants in such way that to each is given
the particular kind of product for which it
Is specially adapted, and in MANY cases
changes in machinery and changes of work
men from one kind of product to another
are avoided source often of great saving
D. skilled manage.nent.-The br ng ng into
cooperation or leading men from the sep
arate establishments, etch having different
elements of skill and experience makes it
possible to apply to the business the aggre-
gate ability of all, a factor in many in
stances doubtless of great advantage To
some degree there may be finer speciali-
cation of business ability, each man being
placed at the head of the department for
which he Is specially fitted, thus giving of
course. the most skilled management posi-
pie to the entire industry, whereas before
the combination was effected only a corn
paratively few of the leading establish
ments would have managers of equal skill.
But this advantage, some think is limit
ed. The chief managers at the central
once are likely to be large stockholders,
and thus to have a strong direct interest in
the success of the enterprise. This NAV
hold also of many of the superintendent
OF departments. But others will be hired
managers, and 1t is claimed, a hired SUI
perintendent will not take the same interest
in the establishment or be able to exert
the same intelligent control as the owner
OF a comparatively small establishment
moreover, minute supervision cannot well
be exercised in very large combination.
@. Export trade.-The control of large
capital also, 1t is asserted. enables the ex-
port trade to be developed to much greater
advantage than could be done by smaller
establishments with less wealth at their
disposal
Evils of Trusts.
Among the evils of the great combina-
tons those most frequently mentioned are:
1. Employees discharged .-When different
establishments come together into one. it is
often the case that certain classes of en-
ployes are needed in much less numbers
than by the Independent plants This is
specially true in the case of commercial
travellers. and, also, perhaps, in the case of
and. clerks in the offices
While this is generally admitted it is con-
sidered by many to be an inevitable condi-
hardship which, like that resulting from
I ne Introduction of new machine will I'LL
tlmately result In greater gain.
Methods of eompetition.-The large es-
eS'oiASiiiaCHts ny cutting prices In certain
localities while maintaining the prices in |
the main. have a decided advantage over |
the smaller competitors whose market is |
limited to the one field in which~the prices |
are cut, and consequently can often sue |
coed in driving their rivals out of the BUSH /
ness. ~
Connected with this method of competi- |
ton is also the use of unfair methods. such
as following up rivals customers. braping
employees of rivals to furnish Information, |
etc.
The sudden raising and lowering of prices i
by the combinations, without notice and
arbitrarily to enbarrass their
opponents, is also considered great evil
3. Increased prices.-When the combina-
tons have sufficient strength or for any
reason get monopoiistic control more or
|A1S complete. It u thought that thoy often