Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1901-05-23
ALA LOOKING BACKWARD"

n IA LOONiN1 OASNNNfNC
The closing years Of the nineteenth
century marked the beginning Of great
industrial changes the world over.
The old conditions of close competition
had been proven a failure. They
entailed immense losses and waste.
BY natural process of wedding out,
the weaker ones engaged in the
struggle had been forced to the wall.
Only the fittest had survived. The
battlefield was strewn with wreckage.
Trusting creditors, including millions
of wage-earners, had lost repeatedly,
as they had pinned their faith to this
or that contestant. The victor in one
contest had been the vanquished of
the next. The extension of systems Of
nter-communication had virtually
made of the world single market, so
that he who could produce cheapest had
his rivals at his mercy, wherever they
might be located. Foreseeing their
fate, these latter, in most cases,
surrendered on the best terms offered,
selling their plants to their stronger
rivals in the field Such as did not
were speedily crushed out by the vast
aggregations of capital called trusts
that now made their appearance.
These soon became virtual monopolies
in their particular line, fixing prices
arbitrarily at point that would yield
a good return on the stock, which was
eagerly sought after by investors.
Great economies We're introduced by
stopping the wasteiul competition that
had absorbed so much capital and
energy in the past. Combination and
Capitalization were the order of the
times. Production was carried on
only at points most favored, and there
on a scale never before witnessed.
1t was in the United States that
these changes came about most
rapidly. During a portion Of the
nineteenth century, the Standard Oil
Company was the only example OF the
trust in successful operation. 1t early
secured a monopoly OF the great
petroleum business, and earned
dividends that made even its small
stockholders rich in few years. As a
pioneer, it blazed the way for other
monopolies, taking hand itself in
then formation. During the Mckinley
administrations, in the period follow
ing the requirement of island possess
sions by the United States, the whole
country seemed to rush into the arms
Of the trusts that were formed in
nearly every line. Wherever it was
possible to unite, union was effected.
Almost Immediately followed the
second stage-that OF a combination
of trusts. The first of these was the
celebrated United States Steel Co.. a
union Of all the leading trusts engaged
in the process Of mining and manu-
featuring iron and steel. It was
formed under the direction of Mr.. j.
Pierpont Morgan, now known as the
Father Of Trusts Its initial capital
stock of almost a billion and halt
staggered the world by its vastness,
though it seemed but an infant to the
capitalizations we have since seen.
Year by year it added to its immensely
by the acquisition Of other properties
that might in any way serve its
purpose. Ii secured railway systems
in America and the Old World. 1t
absorbed by purchase oceanic lines,
mostly those OF Great Britain, which
then did three-fourths of the inter-
national carrying trade. 1t bought
mines of all metals and ores that
entered into the equipment of its
properties. The owners in each case
were glad to accept in payment the
liberal blocks of Steel Company stock
offered. on which they relied for a safe
income Time the f.anftal fzaffor bon.