New-York tribune., 1901-01-06

Who dTGfted the Incorporation papers
History will declare that the most important
economic movement Of the nineteenth century
has been the rise and growth of Industrial com
bnations called trusts.
Born of business adversely. and making it's
way in the face of hostile public opinion, in
spite of drastic legislation. followed by what
were thought TO be crushing decisions of the
courts, the movement has steadily gone forward,
and has accumulated such force that 1t is to-day
recognized as perhaps the leading factor Of the
industrial and financial progress Of this country.
1t is as important an element the movement
that freed this country from slavery. that put
our currency upon a sound monetary basis and
that gave us our great railroad systems
In spite OF the fact that the promoter and
financier took undue advantage of the move
ment at the outset and although the Wall Street
end of the proposition was in some instances
used for selfish purposes, nevertheless the in
dustrial movement of the century has furnished
and is to-day furnishing permanent investment
for capital, which in due course will rank with
securities of the railroads and other well estab-
lished business undertakings
The so-called trust movement was not the on
spring Of prosperity, but rather Of adversely.
Business depression. falling off in sales. losses
instead of profits. had been tending to paralyze
the industries of this country and 10 produce a
general lack OF confidence. which sooner or later
would have resulted in financial panic.
All these things forced down the price of labor
until there was great distress among the labor
ing OF the country
An examination into the situation by ntelu-
gent men revealed the fact that the "antagonis-
tic expenses" incurred in efforts 10 get trade
away from others in advertising, in special In
ducements 10 customers. in rebates. discounts
and gratuities TO buyers. could be saved by
bination.
OFFSPRING OF ADVERSELY
This state Of affairs through the successive
steps of pooling agreements and trade contracts,
led ultimately TO the organization of what is
known as the industrial combination. but at this
point the true theory of combination was de-
parted from, because many combinations were
put together. not solely for the resultant busi-
ness advantages, but primarily for the profit 10
be reaped by the financier and the promoter
This led to the organization of corporations
with widely extended capital. their securities
being issued TO an amount far larger than that
which would represent the actual value of the
properties. The result was capitalization
and speculation. The common stocks OF many of
the industrials had no actual value. They were
merely counters in the game of speculation they
represented merely the hopes of the holders for
share Of the profits over and above the amount
taken by the preferred stock.
the repetition of the experience in England.
where only a few years before the industrial ex-
pansion had been followed by financial crash;
where financial institutions which had under
taken to promote organization and float indus
trial enterprises found themselves overwhelmed
by disaster and many failed, causing widespread
disaster and loss to the investing community.
But this was averted in this country partially
by the wisdom of those I'm control of the great
financial institutions who checked speculation
by declining loan too heavily upon industrials
until matters resumed their normal position and
partially also through the good sense of the
American people
To-day the majority Of industrials are not
overvalued in the market. They probably
advancing in actual value rapidly than
any other security, and do not hesitate to pre-
dict that the time will come when the per
cent preferred industrial stocks in the good COM
panies will be selling at prices which will COM
pare favorably with the quotations for railroad
and other standard" securities.
The hostile public opinion, the drastic legisIa-
islation the unfriendly action of the courts of
some States, had twofold effect:
First-As to the corporations themselves The