The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-04-16
THE DRY GOODS TRUST.

The Dry Goods Chronicle gives the de-
tails OF the new trust in the dry goods
business financed by ]. Pierpont Morgan,
the Aladdin of this generation. The
stock is $40, 000,O O0 1t was subscribed
six times over. John Clafin is to be
president. and already the H. B. Clafin
Co., the Adams Dry Goods Co., and james
McCreery & Co., have been purchased.
The Chronicle says that within a COM
paratively short time the combination will
undoubtedly include such well known
houses as Arnold. Constable & Co., Lord
& Taylor, and Simpson, Crawford and
Simpson. Nor do these promoters have
any idea of stopping with New York city
1t is rumored that negotiations are al,
ready under way for acquiring majority
Ign and also in representative cities of
the South and West.
What is the end? The department
stores have gobbled up the smaller stores.
Are the department stores and the others
to be gobbled up by the trust? Are the
proprietors of successful establishments
who have built up a large business, to
be forced to become the floor walkers in
the trusts big "shebang" or go out of
Raleigh stores will be invited to sell out
or invite destruction?
The Columbia State in recent issue
has a most effective appeal against trusts
and it gives some practical examples of
the evils of trusts. We quote:
THE consultations are undertaken
avowedly for the purpose of curtailing
and decreasing expenses. The railroads
that are being operated under the com
munity of interests plan will consolidate
their legal business and give it to one
attorney or one firm. whereas a dozen
lawyers or firms were formerly employed
by the respective roads forming the COM
bine; they will discharge all but a few
of the soliciting agents, competition be-
ing removed and solicitation being no
longer necessary; they will dispense with
the services of nearly all the local agents
at former competitive points, the bust
ness being attended to by one office with
fewer officials. and as for the clerical
forces. after such consolidation these
will be greatly reduced in number. All
of this means that many men, men of
good business training and ability in their
several lines. will be out of work, will
- s-I~r
where. i
THE railroad combine is only one of
many that might be cited as examples !
of the baneful effects of the trust meth |
DDS. The grocery or dry goods business |
either might be taken to illustrate the |
case. If the present tendency continues |
it will not be long before very great |
change will take place in the conduct of
business. In a town like Columbia. for
instance, where the wholesale and job |
bling business is considerable, instead of
there being as now a large number of
houses in competition, each selling all
lines of groceries and produce, meats and |
provisions, one house will sell meat one
grain, another -four and SO on each hav-
ing the field in its respective line exclu- |
sively to itself. This looks like the per- |
lection of organization and system. So it |
is, but what would be the local effect of |
such system? There would be no trav |
cling statesmen, no brokers, no commits |
sion men, no city statesmen, fewer book |
keepers, fewer clerks, fewer stenograph- |
ers, draymen and employees of all kinds. |
When we look at it in this way, with |
local application that can be so easily |
understood. it is not at all difficult to !!
appreciate the seriousness of the trust |
question. 1t IS when the issue is thus |
brought home to every citizen that he be- |
gins to fear the trusts and to wish to
help curtail their increasing power. 1t |
is impossible to believe that, when this |
realization is forced upon the people so |
directly, they will long refrain from mea
sures which will bring relief. These cold |
facts will do more than all the political |
speeches of ambitious, though sincere, or /
ators to convince the voter of his duty |
to himself and his neighbor with regard to
the trusts. 1t is an appeal that cannot
be suspected of demagogism nor charged |
with buncombe-a practical direct appeal |
to the fundamental law of self preserva-
ton"
TnTTCATT0NAT C0NFEEENCE