The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-09-16
Competing with the Trusts.

competing Win tDc lrnSIS.
Some figures compiled by the New
York Journal OF Commerce. covering
the corporations which have been
formed within the current year. illus
trate very forcibly the truth of Mr..
Hewitts dictum that each trust which
aims at monopolizing any particular
product OF extensive use. and which
creates excessive prices for that article.
contains within itself the seeds OF its
own destruction" The suspicion that
corporation IL obtaining exorbitant
profits at once brings competition into
the field. Substantially every Industry
Is open to the free competition OF new
capital and new enterprise; and no
trust can successfully close the door
to competition while pursuing a policy
which gives exorbitant profts to its
stockholders.
The possible exceptions to this rule
are found in the cases or trusts which.
in existence for many years. have grad
ually gained control Of the principal
sources of supply of the raw material.
OF which the Standard OIL Company
is familiar example; or the trust
which owes its extraordinary advant-
ages TO special favors, granted by local
legislative bodies which forbid compe-
ttion. OF which the New York Ice Trust
is notable example: and the trust
which has an absolute monopoly be-
cause 1t controls some patented ar
ticle. of which Senator Jones' cotton
bale trust Is the most notorious in
stance.
The general rule Is. however. as
stated, that trusts which produce ar
ticles of universal consumption, where
in the nature OF things there can be
no monopolization of the sources OF
supply of the raw material, can never
hold the American market exclusively
to themselves. but must meet as keen
a competition as the smaller establish.
ments out of which the consolidation
was effected. Their only safeguard
against such competition is economy
Of production, and steady abstention
from the temptation to advance prices
exorbitantly.
AS shown by the figures of the Jour
nal of Commerce. the field in which the
greatest combinations have been
formed is precisely the one which has
attracted the most competition within
the past two years. For example there
have been formed eighteen new iron
and steel corporations. with capital
ranging up to So. 900 900; the paper trusts
have invoked six new interpretations.
of from 100000 to $1,000 900 capitaiiza-
ton; the smelling trust, four; the
match trust. four; baking powder.
three. and others in proportion.
The conclusion naturally to be
reached Is that the fears OF a monopo-
lization OF any particular field OF en-
terprise by any OF the newly created
trusts are without foundation. for ~
they seek excessive profits they will
be met by fierce competition of other
capital eager TO share in those profits:
and that the proper and legitimate
province OF trade combinations on
large scale is to induce economy In
operation. In production and in distri-
button. with resulting lower prices 10
the consumer, without affecting inju-
riously the standard Of wages. The peo-
Pile can afford to look with complacency
upon the growth Of such combinations
as this. for on their successful opera
ton depends the ability of the manu-
'facturers OF the United States TO take
largo share Of the trade OF the world
away from their European competitors.
while maintaining the American stand
ard Of wages.