Hutchinson gazette., 1901-11-21
PROFITS OF TRUSTS.
SHOULD BE SHOWN UP FOR PUBLIC
BENEFIT.
"An-That- tho-TranlC-w Ili-BoAr" Methods
Would Not lie Tolerated Were tho
Combines Compelled to Make Quarter
Iy Statements Like Banks.

Tho trusts have more ways than one
of fleeing the public. OF course they
charge for their wares "all the traffic
will bear" which thanks to the pro-
lection they receive through tho tariff
and from the monopoly that most OF
them enjoy Of supplying tho American
market without competition should en-
I able them TO pay large dividends. But
this large profit does not satisfy some
OF the managers or insiders who, by
knowing the actual condition OF the
properties ana the amount Of business
being done are able to manipulate the
market for the trust stock and thus
blind the public who are silly enough
to deal In such stocks with no knowl-
edge OF their actual value except what
the trust managers deal out to them.
Speaking Of law which would compel
the trust TO publish their condition as
banks and railroads do the Philadel-
phla North American says: "0f course
the business followed by conscience
less insiders In certain Of these indus
trial properties would suffer from the
adoption Of policy Of publicity, bo-
cause II would safeguard to some ex-
tent the general rule of small invest
ore whom they find II immensely prof
table to fleece, But among flnanciers
and investors as whole any chance
tending to reduce mere gambling would
not be unwelcome." Then after show
ing that publicity has been put for
ward as one Of the means for control
ing the trusts and that the Steel Trust
has voluntarily made a partial state,
ment of It's financial condition, the
American goes on to say: THE Steel
Trust, however, has thrown out o val
liable hint, perhaps inadvertently,
which would contribute in somo meas
ure to a partial solution of the prob
lem OF monopoly. The compulsory
publication by all corporations engaged
In interstate commerce Of regular
financial statements would at least af-
ford a starting point for intelligent
discussion. The seml-annual statement
of It's earnings by tho Steel Trust has
certainly served distinct purpose. 1t
shows that under present conditions
this immense monopoly has earned
10 per cent income on capitalization
that Is more than one-fourth water,
"While doing this 1t has charged
from 500 to S2S per ton for steel rails
to name one article-which Mr.. Car
negie has testified can be turned out
for SIS, and has sold It's products
cheaper abroad than at the point of
manufacture in this country. What
the other trusts are earning there Is
no means Of ascertaining under their
present socretiye system Of operation,
but tho average customer-and the
average customer in fact Is none other
than tho whole people Of the United
States-feels legitimate curiosity to
know how much he Is being over
charged since healthful and natural
competition has been suppressed. It
may save somo Of the trusts much un-
deserved criticism II they will volun-
tarily follow the Steel Trusts lead In
letting the public know more of their
affairs. Their habit Of concealment is
virtual confession that to expose
their earnings would encourage legis-
latlon which they do not consider de-
sirable for their own ends"