Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-03-05
Trusts Growing World Wide.

Every reader 81 the newspapers tx
nowadays Informed OF IA" fact that
trusts are not confined To this ,ouu-
Try. and III" immediate, question aris-
ing in the minds Of such. tu whom is
suggested the proposition to remove a
tariff from articles manufactured by
trusts in this country. is. whether the
result would not be the formation Of
trusts world wide. In their influence. \
little in advance 81 thcs.- commonly
held views. perhaps, is one pro
pounded by the writer Of an articl,
based on a collection of consular re-
ports respecting the spread Of trusts i'll
Europe. This writer regards the pres
cnt outlook az indicative " a necessity
IN the near future fur the alliance If
trusts IT'D this country with trusts
abroad for the protection Of our own
trade interests. The consular reports
show that combines abroad are ex-
tending their influence 50 rapidly that
'''1'''ti a * - s'tAl = dlllfNS SpiIbtlLlBtS
unforeseen intervenes. they will include
all Europe within their scope They
are now conducted on a principle
similar to that which obtained in this
country before state legislation made
il more expedient to form closer union,
and are commonly known as carteIs
The European cartel is so called
from the cartel. or original selling
agreement, under which the manufaC-
turers or producers of a certain article
or class of product agreed not to sell
their goods below Il specified minimum
price. decided upon by all members of
the cartel and changed from time To
time in accordance with the varying
cost of production and general require
ments of the market This form of
agreement still exists in some cases.
but the cartel now almost universal is
an agreement by which all members
pool their products to be sold through
central committee, which. besides
fixing the selling price, apportons
among members orders as they are re-
ceived. in proportion to the capacity
Of each. the quality Of the merchandise
ordered ana the conditions Of trans
port.
"a contract is signed binding every
member 70 sell his entire products To
the central committee. The com
mittee receives all the orders ana ap-
portions them to the capacity Of the
factories. and the special requirements
of each case. orders for export are
naturally given to factories nearest the
frontier ana when for this or some
other reason one of the associated
plants receives more than its due
quota. the excess is deducted in the
apportionment of the next quarter.
AT the close of the year all accounts
are made up and a general compep-
sation of the excuses and deficits of
production arrived at. in which eIch
plant is credited with the quota as
signed to it in the scheme % allotment.
I'm the European cartel each par
ticipant retains his economic indie
pendence and seeks by combination not
only profit. but as means to it the
SteadyIng of prices by the prevention
of oVerproduction. In the American
trust the independence of the individ-
ual member is lost and all the asSo-
ciated factories become one joint stock
The individual establish
mentS are sold to one large Corpor-
alton in which the former proprietors
now become only stockholders. The
American trust has the stronger fnan-
cial position. as il owns the property
of its members. while the German
syndicate may break into a hundred
parts at any time, and every member
return to the individual management
of his own property"
In Austria the reports indicate that
about the only thing accomplished by |
the cartel is raising of prices but in
Germany the writer finds the results |
far better and the people acquiescing !
in them. He says:
The element of publicity has oper-
ated To disarm suspicion and criticism |
Every incorporated company which
operates Independently or as member |
of syndicate is from the moment Of !
its organization under control of the |
law of corporations. statute that