The times., 1901-05-17
INFLUENCE OF COMBINES
Two Witnesses Before the Indus
trial Commission.

Herman II. Butler Believes Trusts
Beneficial to LHborers and thc
General Public - Christen NIinciS
Says They Injurc His Business
Herman 3. Butler, Secretary Of the frm
of Joseph T Rycrson & Co, iIon mer-
chants. of Chicago. testified before The
Industrial Commission yesterday concern
ing the influence Of combinations upon the
iron and steel trade. The RyeTson com
pany Mr. Butler stated dealt in iron ana
steel in the form of bars, plates, sheets,
and tubes. 1t did not manufacture, but
bought materials from the steel compa-
nies and sublet flcturing contracts
Nr. Butler as the ba-
rometer OF H. the gem
eral confdenee was sold
and contracted Iul .- 49, quantities;
those engaged in its manufacture en-
pIoyed large capital; were watchful of
every slight innuen,s that would affect its
price: and We're necessarily in constant
and intimate relae.a with all other large
interests - transpCI alton, agricultural,
mining. and financial
Mr.. Butler contended that while statis-
ties showed a great difference in apparent
demand as represented by tonnage pro
duction in varying years, this represented
a speculative demand rather than what
went to the consumer. Associated with
the inevitable fluctuations in process,
trade agreement or combinations came
into existence with every upward move
1nent in values They had seldom been
the ca ases Of. Mr.. Butler thought, but
rather a part Of such moveLients- Ihef
end came when prices receded. Ihey
were the public or formal announcement
of a uniform advance affecting all alike
rather than aa effort to secure an abnor-
ma profit or TO stifie competition.
Following every trade agreement or
combination there appeared such de-
unand as would lead to the belief that the
stock of tho country was exhausted.
Prices advanced in spite Of the effort to
prevent a rise on the part OF those who
would profit most by such a condition.
Competition followed as q natural Sc
ouence, over-production was apparent.
and profits disappeared until business was
conducted at a loss except to the most
favored. At this point economies never
before attempted appeared, new forms of
consumption before unknown were devel-
oped until prices again advanced, when
combinations were again formed and the
see-saw began anew.
Mr. Butler thought that prices generally
were lower than If no combinations had
entered the Industrial field. Owing to
the reason given above, every upward
wave Of prices would recede, leaving
values generally on a lower level.
Mr.. But!er. considered the influence Of [
combinations upon wages very beneficial /
1t was a safe axiom, he thought, that /
those concerns who were most successful /
paid the srgest wages. If combinations Z
produced arge profits the wage-earner, /
by the app iication Of the foregoing prin- /
ciple wei be directly benefited. He /
could also secure better terms from /
concern which was making money than |
from one which was not and had better (
opportunities for learning the facts re- /
garding this matter from a large organi- /
zation than from small or individual I
owner. Mr.. Butler thought that organized /
labor welcomed the new order of things, I
as il was certainly true that business was (
made TO increase under combination.
Mr.. Butler said he was not prepared to /
speak as a prophet with reference 70 the /
beneficial or injurious effects of trusts /
generally. The fellow whose toe was step /
ped on made more noise than the man /
who was not interfered with. With every /
development Of human life some were !
Obliged to suffer. Steam was death TO the 1
stage coach, and petroleum TO the tallow /
dip. II new conditions were best for the /
greatest number they would survive The I
survival Of the httest' applied, Air. But
Ter thought, 10 industrial combinations as /
well as anything else. He considered that /
legislation to remedy the evil" if evil 1
it could be called, would be fruitless. The /
public should take lesson from the fact /
that It had not benefited by its appeal TO /
the Legislatures to secure better terms /
from the railroads. He did not think COM
binatione killed competition. Competition /
would endure as long as there was a hu- /
man mind. II was, however to be on a 1
larger scale, with less waste and more /
Intelligence, less speculation and more /
openness- The quality Of products was to /
pc raisedand extreme fluctuations avoided, I
but legislation, from the standpoint of a \
disinterested lsyman, would not serve to /
increase competition, but rather, he /
thought, 10 lessen IT.
ChrisJen hlinck, a pork packer of Buff /
falo, testified a TO the disadvantages un-
der which packers outside of the so-called /
hog combine labored n conducting their /
business. There was discrimination in |
transportation rates, he said, in favor /