The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-12-27
TRUSTS ELSEWHERE.
REPORT or PROFESSOR jerks TO IN
DuSTRIAL COMMISSION

Protective Tariffs Have Had No Bear
ing Upon the Formation OF, Indus
trial Combinations In EuropeaD
Countries.
The industrial commission has just
made public summary of its report
on Industrial combinations in Europe
prepared by Professor j. W. jerks. its
expert agent on Industrial combina-
lions. Mr.. jerks made two months
study of conditions in Europe and has
come TO the conclusion that there is a
strong tendency toward the formation
of Industrial combinations everywhere
in Europe. lie says that IL Germany
1t is probable that the movement has
extended as far as it has III the United
States aud that the combinations there
exert as great power over prices. over
wages and in other directions as they
do here.
In Austria the situation Is nearly the
same so far rs the extent and power of
the combinations are concerned In
England the movement toward combi-
nation has not gone So far as IN either
Austria or Germany Within lie last
three years very active movement to-
ward concentration of industry into
large single corporations, quite after
the form which has been common in
the United States, has been q d.
Nearly all of the feeling" SAYS .Air.
jerks, that one notes III England on
this subject has reference To the later
great corporations formed by tie buy
Ing up of many different establish
ments in the same line of business, cor
porations that through combination
have succeeded in acquiring in many
particulars good degree of monopolis-
tic control. In France the movement
toward combinations is much less pro-
nounced than in any OF tie countries
mentioned"
Mr.. jerks says that In practically all
of the countries the causes for colnbi-
nation are substantially the same as
those found in the United States. The
first motive usually assigned is ruin
Gus competition carried TO SO great an
extent that practically all are losing
money. The desire for increasing prof
Its, of course is also satisfied more cas-
lily when great economies can be made,
and IL Is generally found that by
combination savings of various sorts
can be secured
Protective tariffs do not seem to
have been of special significance in the
formation of industrial combinations in
Europe" says Mr.. jerks. In free trade
England the combination movement
seems to have developed considerably
further than in protectionist France.
Mr. jerks does not think that any re-
duction of wages generally has follow
ed the organization of combinations, al
though he. SAYS that in certain instan-
ces. as In that of the travelling sales
man, the combinations have been able
to dispense with the services Of some
workmen.
1t Is claimed also that the combina-
lions have been enabled to secure much
steadier outputs than were possible be-
fore the combinations were made. He
admits that managers of combinations
have acknowledged that In many in
. stances they have been enabled TO Sc
cure somewhat higher prices than were
possible under the system of ruinous
competition which prevailed before the
combinations were made. He says:
.As in the United States, so in Eu-
rope, complaints are frequently heard
that the combinations sell for export at
rates lower than domestic prices. The
combinations do not deny the charge.
They claim that they must do so If they
are TO export at all and that the export
business is necessary to keep their
works running full time and their Ia
borers employed. Indeed some OF the
combinations themselves give pre-
| miums on their goods exported"
He says In conclusion that there Is
, little objection to combination in Eu-
rope, and in some countries the govern
ments and people seem to believe that
they are needed. There is no belief
that the protective tariff is responsible
for their existence. The great degree
of publicity in the organization OF cor
porations has largely prevented the
evils arising from stock watering and
has evidently had much effect in keep
I, Ing prices steady and reasonable and
In keeping wages steady and just.
There seems to be no inclination to-
ward the passage of laws which shall
attempt to kill the combinations. That
Is believed to be impossible and unwise.
Laws should attempt only to control
and that apparently chiefly through
publicity, though the governments may
be given restrictive power in excep-
al