New-York tribune., 1901-03-15

What can Thev Do for Us? BY the Hon Will
lam Miller Collier. NcWYork State SlNlI ser
Vice Commissioner Emo pp. 5is The Baker
Taylor Company
These books differ greatly in manner ana
method but are alike in scope and CONCLUSION
They may he said 10 prove each other. Profes-
sor jerks is concise. and presents the resuit OF
an examination Of many facts with the precision
OF an expert in political science. He docs not
dwell more upon Individual facts and incidents
than the necessity of deducing principles abso-
luteIy requires Mr.. Collier offers more popu-
lar treatise. with much more detailed reference
to passing political and financial movements
and with quotations from politicians and news
papers He also writes with eye 10 the
partisan character Of the trust issue. Both reach
the same essential points II is agreed that
some of the trusts possess what is actual. though
not legal, monopoly. and have the character
istic evil effects of monopoly. BY their superior
advantages in command of capital. control of a
large proportion of n particular business and
ability TO influence price of both raw material
end finished products they have temporarily. at
least. everybody at their mercy. and are under
strong temptation TO abuse their power The
highest commercial wisdom forbids them to do
This for by pressing their advantage too far they
invite competition for a share OF over large
profits. and political action for the restraint of
even proper activities.
Some labor leaders believe that self-intercst
will dictate such a moderate policy. Regarding
consolidation Of industry inevitable they
concern themselves with organizing to secure
for workingmen their share of the advantages
of combination. confident that the consumers in
turn will see that their rights protected. If
this policy prevails il may be expected that
when the trust stands by its own strength
without special favor the conflicting interests
of the laborer. the capitalist and the consumer
will in the long run operate 10 maintain the
different parties in the industrial organization
in about the same relative position as before the
formation of trusts. and leave each better off
financially. As a result of an extensive inquiry
into the effects of trusts on prices and wages
Professor jerks says: The experience so far
would seem 10 show that labor has been made
more efficient by combinations of capital: that
owing to the better orga nization there is larger
average output per workman: and that the
benefits Of this increased efficiency have been
divided between employers and workmen, the
consumer receiving as yet relatively little benefit
directly
When the trust stands by favor of special
privilege. however. the of evils cannot
safely he left to the slow process Of natural ad-
5ustment Of interests or possible regulation Of
profits corporate investment. which some
trust managers themselves expect the out
come of the trust agitation. There can be no
doubt that special privilege whether 10 individ-
uals. small corporations great trusts, is an
evil be abolished. Some say that the tariff is
such a special privilege. Mr.. Collier is inclined
10 attribute to it indirect influence in building
up trusts in that il stimulated production to the
point Of forcing combination in self-defence
But a tariff is hardly TO be set down evil
IN calf NJ al Of ire
good work in establishing great industries. The
believers in extreme competition and critics of
trusts cannot consistently blame il for making
possible excessive home competition instead of
leaving the market in command of the importer
The trust is conspicuous in unprotected indus
tries, and Professor jerks thinks that the re-
moval Of tariff protection from a trusted indus
try would not prevent monopoly. but. if the trust
was stronger than its independent competitors
the effect Of the removal would be to ruin them
and leave the combination in complete posses
sion of the field. If industry was entirely
dependent on the tariff. removal would kill the
trust, and at the same time kill the industry
Otherwise the monopoly would simply be more
complete. Removal of the tariff would also
tend TO bring about international combinations
for the avoidance of wasteful competition
An undoubted special privilege is freight dis
elimination 1t has certainly helped 10 build up
some trusts in the earlier stages of combination
as 1t also enriches fortunate individuals Under
present laws. which should perhaps he male
more strict. such favoritism is forbidden The
large Shippers do serve the convenience of rail-
roads better than the small. and mere bust
ness proposition. from the uDint of view of The
stockholders Of the railroads they might legiti-
mately he favored. But the public interest must
control the conduct Of a public carrier and that
requires equal terms for all which should be
everywhere enforced. Even then the trust will
have an advantage, because with many plants
1t ran ship from the nearest to the con-
sumner.
Virtual monopoly based not on natural con-
ditions and business shrewdness. but on dis
eliminating favors, calls for rigid restrictive
legislation. There will be no difference of oplr-
Ion about the principle TO be followed but il is
4 ci.tcult matter to determine the practical
steps necessary either for regulating trusts in
their proper sphere cutting off their iInproncr
privilege. Mr. Golfers first. second and third
remedy is Tuhlicity. So important docs he re-
gard this that h. thinks 1t practically useless to
try - formulate other plans until the fun light
Of rrblicity is thrown upon trust management
and pIo1ts. Professor jerks equally favors pub
hcity, but he thinks that il is possible with pres
ent knowledge TO take some further steps He
would abolish all discriminating favors. and
'hihks IL might be wise in the case of monopoly
by patent TO compel the inventor to allow anv
booy 10 produce his invention on payment of =
liked royalty He believes some tariff changes
might be wise, but he warns against anv sweep
ms attempts TO destroy trusts by removing
duties.
In his \ lew the legislation most needed "a
strike directly al the crying evils Of tructs is
10 he