The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-17
Tendency in Several Countries Is TO
Foster Industrial Combination
Under Proper Supervision.
PUBLICITY IS A NECESSITY
MANY OF THE COMBINATIONS ARE
MERELY AGREEMENTS,
Each Establishment Promising ia
Control Production and Limit
WaRes-NO Discrimination.
stan Correspondence OF the Journal.

WASHlNG1ON, aug. ID lie lhuuSei iai
Commission has made public summary of
the facts obtained regarding the indus
trial combinations in Europe, which has
been prepared by Prof. j. w. jerks. its
expert agent on industrial combinations.
from the report to be made to Congress.
His summary, a synopsis of which was
printed yesterday. does not contain opin-
ions or recommendations of the commits
sion. The results of the Investigations
will be considered in the final report to
Congress. Professor jerks states that the
situation regarding industrial combinations
in Europe probably justiies the following
conclusions regarding the nature and re-
suits of industrial combinations there, and
European experience suggests certain
thoughts applicable to the situation in the
United States:
There is a strong tendency toward the
formation of industrial combinations every
where in Europe. In Germany it is proba-
far as in the United States, and that the
combinations there, speaking generally.
exert as great power over prices. over
wages and in other directions they do
here. The plan of organization. however, AS
appears from the report, is materially diff
tions are made simply by contracts between
Independent establishments regarding out
put, prices, etc, instead of the form being
tndL OF a single large corporation. prac-
tically all of the important cases, however.
the central control. owing to the favorable
attitude of the German government and
law courts and public opinion, is complete
enough to give full power or direction.
I'm Austria the situation is nearly the
same, so far as the extent and power of
the combinations are concerned On the
other hand, there is more disapproval of
the combinations on the part of the public,
and three decisions of the courts made
within the last three years. which render
the contracts among the different parties
TO the combination uncomfortable. seem to
strength % of e the combina tions within theme ne
selves. So far these decisions have pro-
duced little effect. but 1t Is practically GER
changed. and if there is no new legislation,
the combinations will be likely to take on
ne, new t form in IN certain tsr particulars
bination has not gone so far as In either
Austria or Germany. There were in earlier
days very many local combinations to
keep up prices, and In some cases these
rings have proved very successful. Within
the last three years, however. very active
movement toward the concentration of
industry into large single corporations,
quite after the form which has been com
mon in the United States, may be observed.
Nearly all of the feeling that one notes in
England on this subject has refernce to
the later great corporations formed by the
buying up of many different establishments
in the same line of business, corporations
that through combination have succeeded
in acquiring in many particulars good
degree or monopOllstlc control.
FRENCH LAWS AGAINST MONOPOLY.
I'm France one finds the movement to-
ward combination much less pronounced
than In any of the countries mentioned be-
fore. The reasons for this are perhaps
two: First. France Is less developed in
dustrially than the other three countries,
especially England and Germany, and as
French industry has not yet entered so
much into international competition as has
been the case in other countries. the same
pressure toward the savings and toward
the added power that came from COM
bination has not been felt. In the second
place the French criminal code is very Sc
against fraudulent monopolistic at
temps to control the market. This code
was doubtless passed with reference tc
conditions entirely different from those
now existing, but if a combination should
apparently be able TO increase prices. and
should attempt to do so, its officers might
quence, while the movement toward COM
bination is very evident the managers of
combinations are much less inclined to let
their movements appear in public The
combinations in France, also, with few ex-
ceptions, are less firm in their method Of
organization. much more being made de-
pendent upon mere verbal agreements
1.-The form which the combinations take
in every country seems to be partly a re-
suit of the business habits of the country
legislation. In practically all places the
combinations start by simple agreements
among different establishments to sell at a
Uniform price, to make effort to se-
cure the patronage of the customers of one
another, or-another manifestation of the
same plan-to divide territory among them
selves. In most instances. particularly If
there are many members Of the combina-
ton, il will be found that some are not
faithfully living up to their agreements.
and an effort is then made to secure a
firmer union. Whenever the courts hold
legal an agreement for limiting product
or for uniform prices, the more natural and
usual form is Tor such contracts to be put
into writing, with a penalty for breach of
contract.
"In practically all of the countries the
causes for combination are substantially
States. The first motive usually assigned
is ruinous competition carried to so great
extent that practically all are losing
money. The desire for increasing Profits
Of course, IS also satisfied more easily when
great economies can be made. and il is
generally found that by combination
savings OF various sorts can be secured
1t is To be noted however. that in Austria
France and Germany, where the form of
combination Is largely that Of simple agree
ments among different establishments each
one of which is managed independently the
savings that come from closing of the moor
est establishments. from the better dtstri-
button OF products among different estab-
lshments, etc, cannot we'll be secured
although those which come from lessened
cost OF selling are easily made. Members
of syndicates in the cases mentioned do not
hesitate to acknowledge that the form of
combination into a single corporation is
more advantageous as regards many of
these savings than the form that is more
common i'm their own country. They how
ever. attribute their hesitation 10 adopt the
more complete form TO the high taxation
and the publicity 10 which corporations are
subjected and To the greater spirit OF indie
pendence. as they claim the part OF
their manufacturers, who. they say. would
n civ the oUa NJ ina