The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-04-22
A NEW VIEW of THE Trust CUES


The writer of an article in the current
lumber OF Public Policy advances new
view OF the cause OF the extraordinary
cancellations of industrial plants and
railways that are now taking place Ac
cording 10 his view the consultations are
mess talent.
In the course of his article he says:
THE monopoly of which complaint is
made is monopoly of talent. 1t is due
In part to a deficient supply of admins
trative ability. Every new invention.
every extention of the market, every step
in the organization of labor renders the
demand for executive administration yet
more exacting. and unless 1t is possible
to bring trained intelligence into the field
OF competition the present trend in in
dnstriai organization win continue. If,
on the other hand, this corner in the
genius market can be broken by supply
OF business talent. not only will our in
dustriai organization become less highly
congested than at present, but a new
spirit will be infused in the administra-
ton of such industries as from their
nature are ,monopolistc." man.
This is a novel reason for the consol-
idations but it is doubtful IL ii will be
accepted as the true one, 1t Is remark
able that II has not been mentioned by
those who have taken the leading part
In bringing about consultations. 1t is
the understanding that nearly, if not all
Of the plants consolidated on the Nor
gan billion dollar trust were making
money before that trust was formed.
The earnings of the Carnegie Company
were enormous, and so were those of
some Of the other plants Assuming that
such was the case each of the plants must
have been managed by men of executive
ability much above The average.
No doubt some of the railways that
have been taken into great systems were
not managed as well as they might have
been, but the most of them were making
their fixed charges and dividends. AS far
is the public knows none of the consoI-
idations, either of railways or of indus
trial plants, was made because of a
desrth of executive talent. In the forma-
ton OF about every trust the statement
is made that by consolidation under one
management 1t is possible to reduce ex-
penses.
The main purpose. however, of the con-
soiidations is to shut off competition.
Without competition prices can be main
tanned and even increased. The railways
have been trying for years to find some
effective method for stopping rate cut
ting. They seem to be in a fair way of
accomplishing that by the consultations
which are being made. Mr.. Morgan says
his billion dollar steel trust will steady
the steel market. BY that he means the
trust will be able to fix its prices and
maintain them, because it will have prac-
tically no opposition.
II looks as If there had been q develop
mont of a new kind of talent--a talent
for promoting consolidations-instead of
being paucity of business talent OF the
kind required for great business enter
prises. And this new kind of talent is
aided in the work In which it is employed
by the vast amount OF wealth that is all
the time seeking investment. There
never hes been a time in this country
when the talent required for thee manage
ment of any business undertaking could
not be had. 1t may not have been pos
sible always to get it the day it was
wanted, but it was to be had, and was
eventually obtained.