Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-04-16
No ECONOMY IN THIS TRUST.

NO ECONOMY IN THIS TRUST.
The ~favorite argument in support of
trusts, is that they are simply compact
associations OF interests for greater
economy of production and hence are
really a benefit to a community since
they assure lower prices.
This is a fine theory, but like many
other theories it works contrariwise in
practice. Trusts are formed generally,
not with a view of furnishing the dear
people cheaper products, but of bene-
fitting their stockholders through mon
@opoly of production and often of raw
materials, which enables them to fix
prices arbitrarily under cover OF the
tariff which keeps out foreign competi-
ton.
The economy-of-production theory
with regard to at least n trust was
effectuaIly laid low by the testimony
of Mr.. Jonn Norris, business manager
O. the New York Times, before the In
dustrial Commission as to the origin, de-
velopment and operations of the Inter
national Paper Company.
II will assert" he said, that the In
ternational Paper Company has failed
in every expectation it held out to the
newspapers and to the public. The
cost of manufacture is greater under
consolidation than under individual
ownership of the paper mills. The
economies which were to be obtained
under consolidated management have
not been realized. The export trade has
fallen off, or, at least, has not increased,
though that was to be the strong fea-
ture of the consolidated companies eff
fort. The promised policy Of an en-
lightened self-interest has been aband-
0ned, and the net result to newspaper
publishers has been an increase of over
1880, 900 per annum in the cost OF
news print paper"
He placed the output of news print
raper st $26 200, 900 per year. Refer
ring again to the promises of increased
cco.iomy due 20 the consolidation, Mr-
Norris repeafed that it had not been
real ed. AS ar instance, he said, the
president of the consolidation is paid
$4,000 a yea~, ALI manufacturers sal
a. les were increased from $500 TO S.S-
900. There also had been a Nst add
ton to the spruce lands owned by the
company, the area secured in the United
States bringing the aggregate up to 1900
square miles, while 1000 square miles
of this land are controlled in Canada.
There had likewise beer an increase III
freight charges.
All told, he placed the enhancement
of the cost price of producing paper at
So per ton. He knew of two newspa-
pers which were paying an increase of
Sl5e,00O each annually on the paper
used by them.
Thus does Mr.. Norris knock the econ
omy-of-production theory galley west
as regards the paper trust. The same
thing is true ito a greater or less ex-
tent of all such consultations, with few
IL any exceptions. We know that the
price of tin plate has been doubled by
the tin plate trust. This action of the
trust under its protected" monopoly,
is due to the fact that the combine
originally included many out-of-date
and worthless plants taken in at a high
figure, and the consequent necessity of
paying dividends on a tremendous
amount of water. The same is true Of
the new Morgan combine, the United
States Steel Corporation. While that
trust LAY save a great deal through its
monopoly of raw materials and trans
portation facilities it will doubtless
waste the saving thus made and more
through its unwieldiness and the enor-
NOUS salaries of it's officers beginning
with its million-dollar-a-year president
Moreover, the stock of its component
companies, originally fearfully watered,
were again diluted enormously, making
altogether an ocean Of water in the new
trust. And on this the object is to pay
handsome dividends.
AS Mr.. Norris demonstrates in the
case of the paper trust this sort of thing
means anything but Increased economy,
or lower prices to the consumer of trust
wares. It is proof that these Illegal
combines are hurtful alike to legiti-
mate industry and enterprise and labor.
They plumber equally the producer and
the consumer.
European military burdens and tales
of boundless American prosperity are
bringing immigrants from Europe BY
the thousand. Last week ok steamers
brought 5000. These were largely from