The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-13
THE RESULT OF NATURAL CAUSES


Not long ago the statement Of the Presi-
dent in his message that the creation Of
those great corporate fortunes has not
been due to the tariff nor TO any other
governmental action, but TO natural causes
in the business world. operating in other
countries as well as in our own" would
have been challenged by many intelligent
men. Within a short time, however, full
investigation has brought TO light the fact
that combinations of capital similar in
structure and effect to those in the United
States are rapidly developing in all the
larger industrial countries. The Journal
has frequently referred TO the prevalence
Of trusts in Great Britain, but a book has
recently been published in London entitled
Trusts and the State fifty pages of
which are devoted to tracing the growth
Of combinations in the United Kingdom.
1t appears that British trusts of greater
or less extent exist in the shipping, earth
enware, sewing-thread, cotton-spinning,
dyeing, wool-combing, calico printing, tex
tile machinery, soap, gunpowder, tobacco,
and many other industries. The Calico
Printing Association has a share capital
of $30,OOOO0O, and s16,OO0,O0O in debentures.
Forty-seven firms of calico printers and
thirteen firms of merchants with properties
and assets purchased for $4,000, 900, entered
into this combination, which controls 50
per cent of the calico-printing business in
Great Britain.
Trusts or combinations exist in Germany.
One coal syndicate controls 81 per cent of
the coal mines in western Germany, ex-
elusive of those owned by the government.
More than half the steam tonnage of
Germany belongs to two companies which
have a capital of s4SOO0,OOO. The sugar
trust in Germany includes 50 per cent. of
the raw sugar manufacturers and refiners,
while an alcohol trust controls the greater
part of the production. These extensive
trusts, depending to some extent upon
transportation, have sprung up in coun-
try which owns most of the railroads, and
the latter do not give secret rebates to
favored shippers. IN this connection it is
well to quote from the report of Professor
]. w. jerks, who recently prepared re-
port on combinations of capital in Europe
for the Industrial commission, as follows:
When one notes that in the United States,
in Germany, in England, in Austria, in Bel
gium, and in France the tendency toward
combination is exceedingly strong; that in
the three or four countries first named the
movement has advanced much further than
in France; and when we consider still fur
Their that in Italy, in Spain and in the
Balkan States we have apparently Only the
beginnings of this movement, the conclu-
l
bination is a form of industrial organiZa-
ton particularly suited to developed in
dustry.
1t is not expected that the foregoing con-
clusion Of a careful and candid investiga-
tor will have any influence with those
who have no use for data in making con-
illusions those who politics in charg-
ing the trusts upon the tariff, but fairly
intelligent and practical men who see that
industrial combinations are even more gen.
eral in free trade Great Britain and pro-
tective Germany than they are here will
agree with the President that "the trusts
are due to natural causes in the business
world, operating in other countries as they
Congress should deal with the trusts as
\ a result of the tariff it would be likely
to infict serious injury on the industry
/ and business of the country.