The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-04-25
ARE THE TRUSTS coLLAPs,Ncr

The trusts are being taught the lesson,
that the laws of commerce cannot be
ignored, not even by the most powerful
aggregations of capital, and that sooner
or later the violators Of commercial laws
will be punished for their offenses.
During the past two years, the trusts
which monopolize' the manufacture and
sale Of almost every staple article have
steadily forced up prices while continuing
to maintain the former volume of produc-
ton. They have, in their estimates of
production and profit, used as the basis
the figures relating to normal conditions
normal prices. normal production and
normal consumption. They appear to
have entirely overlooked the effect of alb
normal prices upon consumption, and ths
result is that they find that they are
over-producing. They have learned that
high prices entail decreased consumption
and decreased consumption will necessi-
tate decreased production. The amount
Of money which the consumer has to
spend on certain commodity-hardwar
for instance-is limited, and If prices are
advanced he will buy less quantity.
But the trusts have not learned this
lesson in time. The men who have
hitherto created, manipulated and man
aged the business of the trusts have not
as a rule been men possessing practical
experience as manufacturers. They have
not learned in the only school where
knowledge Of the fixed laws of trade can
be acquired, the school of practical ex-
perience. the inevitable relations existing
between supply, prices and demand. The
result is, they have approached danger
ously near the verge Of tremendous COM
mercial disaster and have been compelled
to do two things which, according to pop-
ular impression, must be most unpalat-
able to such organizations. They have
been compelled to limit production owing
to the vast accumulation Of stock in their
storehouses, unstable by reason Of alb
normally high prices: and they have been
compelled to reduce their prices in order
to dispose Of this accumulation of stock.
The high prices fixed by the trusts simply
paralyzed their business. Orders could
not be secured, except small orders for
immediate necessities.
The result is that the trusts are being
driven to hold forced sales In order to
raise money to meet their most pressing
obligations, and it is doubtful If in many
cases crash can be averted
The effect upon the stock market has
been tremendous and is probably only
just beginning. The so-called industrial
stocks, principally those known as steel
stocks, have deprecated and shrunk
enormously during the past week, or since
the announcement was made that the
American Steel and Wire company had
shut down twelve Of It's mills The total
shrinkage in the market value of the
from the high values of 1899 to the low
values at which they were quoted on the
market at the end of last week is $119.-
Al, 594, the total amount of their stock
being about $496, 600, OOO The shrinkage is
thus shown to equal over 27 per cent OF
the total stock.
If the protection from foreign compe-
tition enjoyed by these trusts and mo-
nopolies was removed, or had never ex-
listed. such a state of affairs could not
have been created. 1t would have been
impossible, and when this lesson is also
learned the country may expect to en-
Joy stable trade conditions. and not be-
fore