The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-19

rme of transactions that the greed of the
manufacturers was responsible for the
/ dissolution of the association. They de-
waited from the association schedule OF
! prices, undersold the company goods,
! and to cover up the dishonesty of their
! transactions failed to report such sales
| Fines were imposed, but failed to check
! the evil, which spread and led TO the
abandonment of the scheme. Mr.. Burn
thought that the abnormally high prices
undoubtedly led to violation of the agree
ment in the first instance.
| During the following five years an open
| market prevailed, and as a consequence
prices were greatly reduced and several
manufacturers were obliged to retire
! from business The competition which
/ prevailed in the open market, Mr. Burn
! said. was most severe on the dealers. and
as each season brought fresh reduction
| their credit was impaired and their abil-
| ity to meet their liabilities lsssened. The
formation of the National Wall Paper
| Company in 1893 was the direct outcome
! of the then existing conditions.
Mr.. Burns testimony left the impress
J sion that the organizers of the wall paper
trust were large-hearted philanthropists
| with a greater share OF the milk OF hu-
/ man kindness and consequent amount OF
consideration for others than Is usually
| accredited to those engaged in the gentle
! practice OF "harmoniZing.' The manu-
! factrrers engaged in the consolidation
stated that they would be entirely salts
| fed 10 earn the same amount in the COM
bination as they had as independent manu-
| facturers, and in order TO prevent specuia-
| lions in the stock OF the company refused
to list it on the stock exchange. Ihey
| believed in the theory on which all com
binations are based, that saving in
| MANAGEMENT and operation would ensue
and in order to give the direct results OF
| these savings to the public one of their
/ first acts was TO reduce prices 10 per cent.
| As a result the trust earned IN the Hrst
| wear only two-thirds of the amount earn
! ed the year before by the Individual manu-
facturers merged INTO me conn ,s s,oti. q,
| The philanthropic gentlemen composing
| tine trust however, accounted Tor inns
in part by the reduction IN prices, py me
| expenses of incorporation, ana py lile u
/ ability to Immediately effect the contem-
| plated economies. Then the company de-
| cided as a further economy 70 eItlreS
dispense with the jobber or middleman'
/ the idea being as before, 10 give the pun
lie the benefit of this saving.
! This action and the subsequent CLOSING
Of several factories in order TO concth-
trate and increase the output OF remain
ing factories proved the undoing OF the
companv New and independent factories
were established. and the Jobbers, VINO mao
become intensely anlaSoniSliIt he'1iu Va
! the output of these factories in prefer
] ence TO the trust made goods. me I'M
I grateful public. too, avoided trust MADE
| goods whenever possible. In the fourth
! YEAR Of its existence, however, the trust
! absorbed one of its largest competitors
| and reversing its policy of not selling 10
| iobbers, managed to pay fair dividend
| Again this condition of prosperity within
| the organization excited competition, al
| fecting the trust to such an extent that
dissolution was considered a proposition
| WAS at that opportune time received from
| ali competing. independent concerrS and
| the Continental Wall Paper Company was
| formed which became the selling agent
| for paper manufactured by the National
! Paper Company.
For several years this concern continued
| I'm business with varying legrees of sue
| cess, but it was finally realized that the
| iobber could not be controlled and as
| result the Continental Company was DIS
! solved. and the National Company Is now
| in process of disintegration.
| In summing up Mr. Burn said he
| thought that consolidation does not bene-
| fit unless il controls, especially in indus
tries in which prices are not based on
| intrinsic value alone. Consolidation m
| vited competition and the very mention
| OF trust antagonized the public. An in
| dustrial combination in Mr.. Burns be-
| lief also aided labor in enforcing its de-
| mands. labor being able to concentrate
its effort on one concern instead of di-
yiding it's effort among a larger number
| He gave an example in the case Oh the
| block cutters, who prepare the wall paper
| patterns for printing and who. at the
| formation of the trust, received $l2 to
SIS week. Their union was not effective
made demands on the centralized concern
| with the result that wages steadily in
| creased until they reached the present
rate of SIS to S2h a week.