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

NJ. D. Ratchford, John l.. Kennedy, tai
bert Clarke.
Il concur in the recommendations of the
commission on industrial combinations. but
withhold my judgment on transportation
corporations until testimony now being
compiled by commission is submitted to
Congress, with recommendations
WIN. LORIMER.
II concur in all except paragraph marked
(bJ, page Z. 1t seems to me better that
rates fixed by interstate commerce COM
mission should not go into effect in case
of appeal until affirmed by court, and that
trial on appeal should be expedited.
ALBERT CLARKE.
A Mass of Evidence.
THE industrial commission" the report
saws has taken a mass of evidence re-
garding Industrial combinations-facts re-
garding their organization and methods OF
work, opinions from all points of view re-
garding their effects. good and evil, upon
business and society. and suggestions re-
garding legislation
AS in the first instance, the most i'm
portant task was to learn the facts regard
ing them, most of the witnesses summoned
were either persons connected with the
combinatiOns-hence those inclined to see
their favorable side-or their rivals: VINO
were naturally led to see and speak OF their
evil aspects An inevitable result has been
that the evidence. even on questions OF
fact, has often been contradictory, and IN
some instances IL mas DeeH lfHpoSslDte lipLi
the testimony SO far taken to reach any
positive conclusion. On the whole, how
ever a careful weighing of the evidence
will lead to some conclusions regarding the
nature of industrial combinations and their
effects which seem fairly we'll justified. 1t
should be kept clearly in mind through all
the discussions that great capital or great
combination of capital has no necessary
rela ton to monopoly, though 1t seems to
be establshmed that a virtual monopoly
may at times be secured through the in
fiuence that comes merely from great cap
ital.
Connection the Chief Cause.
Among the causes which have led to the
formation of industrial combinations. most
of the witnesses We're of the opinion that
competition, so vigorous that profits of
nearly all competing establishments were
destroyed is to be given first place Even
Mr.. Havemeyer said this, though, as he
believed that in many cases the competi-
ton was brought about by the fact that
the too high protective tariff had tempted
many rivals into the field, he named the
customs tariff law as the primal cause
Many of the witnesses say that their Or
ganization was formed to make economies
to lessen competition and to get higher
profits-another way of saying that COM
petition is the cause without concedlng that
the separate plants were forced to combine.
One or two witnesses simply mention the
higher profits wanted or some like am
bition, as when Chairman Gates asserts
that the American Steel and Wire Com
pany was formed because its organizers
wished to be the wire manufacturers OF
the world
1.-The methods by which the combinations
hope to effect savings so as to keep new
competitors from coming into the field viii
be mentioned under the advantages of COM
bination. but it may be noted that they
usually assert that they expect the in
creased profits to come from savings and
Of DrO6nptiOD and from
higher prices.
The review of evidence sums up the ad-
vantages and evils of great industrial cor
porations, together with the remedies for
the evils, as follows:
Advantages of Great Combinations.
Those who advocate the formation of
large industrial combinations claim that
they possess over the system of production
on a smaller scale by competing pants the
following advantages:
1. Concentration.-By closing individual
plants less favorabiy located or less We'll
equipped and concentrating production into
the best plants most favorab,y located a
great saving can be effected, both in the
amount of capital necessary for the pro-
duction of given product and the amount
of labor required.
Another advantage of the concentration
of industry is that the plants which are
kept employed can be run at their full
instead of at part capacity, and
can largely be run continuously instead of
so far as the combination
happens to control the larger part of the
entire output-a material source OF saving
in certain lines of industry. A still further
advantage of this concentration comes in
the selling of the product, from The fact
that customers, being always sure of ready
supply whenever it is wanted, more will
ingly buy from the large producer, and
that there is less loss from bad debts. This
readiness to buy from trusts, however is
denied. some witnesses holding that deal
ers prefer to buy from independent pro-
ducers.
In certain lines of industry much greater
can be practiced, especially in the
way of using by-products to better advan-
tage in a large establishment than in a
small one. Much difference Of opinion ex-