The times. [volume] (Richmond, Va.) 1890-1903, 1901-12-24
THE IpLISI FAILURE.

or ,,,tteaT-o. The other night. Mr.. Charles
a, scbwal,. president OF tho United
States steel Corporation. declared mat
..hc tri;st IS a dead business proposition,
butt on a. trinity that would wreck any
thing; tic restriction Of trade. the ~
crease of prices and the throth!ns OF
competition
Mr. Schwab drew distinction hctwecI
the trust ana tho modern business cont
bine which :,as for its guiding principles.
rs he expressed it. tho reverse of this
trinity. instead OF restricting. expanding
trade by creating new avenues and re-
ducng the price OF commodities pro-
duccd.
Those Of our readers who have follow
cd The Times in the discussion OF thla
topic during the past several years VIII
recognize :,i what Mr.. Sclwah says
Federation Of what this paper has said
time and again. in reply 10 the coateh-
ton Of the antitrust people that the
great combines Of the country were gong
to monopoiizc this branch OF trade ana
that and PUT mp prices and reduce wages
md ride rong!lshod over the people. ne
have said that in the nature OF things
this was impossible. Nc have argued
that as these combines do business VITA
large numbers OF people it was necessary
for them 10 make their goods populaS
in order TO sell them. The managers ot
such combines understand full well that
there is a prejudice against trusts and
that in order to overcome it they must
popularize their goods. and so it has been
the great aim of these combines to make
the very best article at the lowest price
In order to do this it is necessary to
have the best labor, and in order to get
the best labor it is necessary to pay
good wages. Many attempts have been
made TO introduce antitrust goods, So
called, and to sell them on sentiment. but
in almost every instance these attempts
have come TO nausht. and FOR the simple
reason that the trust-rnade goods We're
the best and cheapest. At any rate. the
people in spite Of their prejudice, prefer
red the trust-made goods and bought
them.
1t is absurd TO say that large concerns
which deal with the general public car
ride rouehsllod over their customers and
yet succeed in business. The corporation
of which Mr.. Schwab is president is the
largest in the world and there has sprung
up in these prosperous times a brisk de-
nand for all the products of the corpor-
alton. 1t was q. great temptation TO put
up prices at an cxorbitant figure. but the
managers of this corporation have re-
Trained from doing so because they knew
that it was bad business. Nor have they
cut wages. Mr.. Schwab says that the
first mortgage upon the United States
Steel Corporation is not the bonds but
the claims of the men who work for it.
He says that his corporate ton pays to Ia
Dor approximately s150o0o.0oo a year,
Which is equivalent to a mortgage debt
of S3.Ooo0OO.0NO upon the property and
must be paid in advance of the mortgage
bonds. Never before. says he, has labor
in the industries with which he is familiar
received such high pay.
Some time ago there was organized :,
corporation known as the Amalgamated
Copper Company, which largely controlled
the copper industry OF this country.
These people seemed 10 think that they
could control also tho price OF copper ard
arbitrarily held it at 1!c. per pound, al
though the demand abroad for copper
had materially decreased. They did sue
coed in maintaining the price for 4 time.
but a; great cost to the company. A large
surplus Of the metal was accumulated
aud first there was a. cut il the dividend
on the stock, then another cut and the
price of the stock tumbled from $50 a
share 10 $50 a share Now the company
has begun TO cut the price of the metal
and there is general Decentralization i'll
The copper trade.
IN some few cases where Z corporation
gets n monopoly OF 4 natural product it
may be more or less arbitrary il its
dealings with the public. But generally
speaking. it viii not do for any corpora
ton. however powerful il may be, 10
snap its fingers at public sentiment or TO
+ lily in The face of the natura! laws Of
trade. These laws are as fixed as any OF
Tire physical laws of nature and sooner
or later assert themselves. We say that
no corporation can succeed which puts
itself in antagonism to these laws and TO
public sentiment
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t1nyEPSMENT EXPENSES.