The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-08-16
jerks ON COMBINATIONS.
The Report of the Industrial Com
missions Expert.

He Declares That the Trust Move
ment Has Penetrated All Europe,
But - Controlled by Penal Pro-
Vi-ionS-RcsuIts of Investigations.
Perhaps the most interesting part OF
tho final report Of yhs Industrial Com
mission 60 bv submitted TO Congress VIII
be that dealing with industrial coWpina-
tons IT, Europe. which has been prepared
for the Commission by its expert agent ON
industrial combinations. Prof j. W
jerks.
The Introductory summary of the T'-
port was given out ny IN, Industrial
Commission today. TIE volume on indus
Trial combinations ma Europe contains the
result of "a two monies study made IN
Europe, with Government officials o. Eng
land, France. Austria. and Germany. with
scientific students q economies and other
pUbiicists, and with people connected with
Industrial combination. In hIs preface
Prof jerks says
1t is q pleasure To- express apur,cia-
ton Of the cordial and granted hy many
persons in furthsranco Of tn, Invostga-
tiUn. Not only did scientific students of
economies ami punhcIsts give their opin-
ions and furnish information freely. but
Government officials put official material
at our disposal and business men without
exception gave literally OF their valuable
time To- explain their methods or OrgauIza-
tiCn and work. They also furnished "a
large part Of the most valuable material.
in the shape of reports and statistical
data, which in some cases were especially
compiled for this report. When IT was
explained that the information sought
No
for scientific purposes 10 furnish data for
the Government from which possible and
for legislation could be- secured. aH posi-
bic assistance was freely given
In summing up the result of his work in
Europe, Prof jerks says there is a strong
tendency toward the formation Of indus
trial combination everywhere in Europe
and in Germany the movement has OK
tended as far as in The United States.
Combinations in O, rman, he declares.
exert as great power over prices, wages.
and in other directions as they do iu this
country. The plan Of organization in Ger
many, however, is different. In mos-
cases the German combinations are made
simply by contracts between iudepeuds Mt
establishments regarding output prices.
etc. instead Of the form being that Of a
single large corporation. In practically all
tral control, owing TO the favorable atti-
tude Of the German Government and law
courts and public opinion. is complete
enough 10 give fun power of direction
In Austria the situation is nearly the
same, so far as the extent and power Of
the combinations are concerned. on the
other hand, there is more disapproval Of
the combinations on the part of the pub
lie, and three decisions Of the courts made
within the last three years. which render
th-- contracts among the different parties
10 the combination non-enforceabIe. seem
20 have weakened in many respects the
strength Of the combinations within them
selves. So far these decisions have pro
duced little effect. but il is practically GER
tain that If this attitude Of the courts is
not changed and if there is no new Iegis-
lation the combinations Will be likely TO
take on new form In certain particulars.
In England the movement toward com
bination has not gone so far as in either
Austria or Germany. There were in ear
lier days very many local combinations 20
keep up prices, and in --ne cases these
rings have proved very successful With
IN the last three years. however. a very
active movement toward the concentration
OF industry into large single corporations.
quite after the form which has been com
mon in the United States. may be OBJ
served. Nearly all OF the feeling that one
notes in England on this subject has ref
erence 10 the later great corporations
formed by the buying up Of many differ
ent establishments in the same line Of
business. corporations that through COM
bination have succeeded in acquiring in
many particulars gooG degree Of monop-
Olistic control
EN--nr.g. sl7.. -,,.-..---.-.. ..-..--r --.--
bination IS less pronounced than in any OF
the other countries"
Commenting on the forms Of c0mbina-
tiOns Prof jerks says.
In practically all places tho combina-
tions start by simple agreements among
different establishments 10 sell at uni
form price or 20 make no effort 70 secure
the patronage Of the customers Of one an
other. Cr-another manifestation Of tn,
same plan-to divide territory anone
themselves In most instances. particu.
larry II there are many members Of tn,
combination. it viii be found that som,
arc not faithfully living up 20 their agree
ments, and an effort is then made 20 ST.
cure firmCr union. Wherever IN. court,
will hold legal an agreement for Unitiuc
product OF for uniform prices. she NOR,
natural and usual form is for such con
tracts 20 be put into writing, with a pen
atty for breach Of contract.
in order 10 avoid the necessity 81 lit
igatiOn, IL is very common FOR deposits ct
securities TO be made by each participant
10 the agreement, with the uuIer-t Iuaiul
that If the contract is violated the deposit
Will be forfeited. II the laws II the couu
try, however as enforced by the courts
hold such contracts illegal and contrary
70 public policy. so that they cannot D.,
enforced. the combinations are practically
compelled 10 take some other form, such
that ~ a single corporation. as in IN,
United States and Of late in England, o.,
else 10 accomplish the same result IL
come other way. On the continent Of Eu
rope IL is very generally the case thai
these combinations regarding prices and
output refer only % goods sold within IN.
country. and do not apply 20 sales for -ex
port"
Prof. jerks SAYS the causes for cOmbi
nation in Europe are substantially IN,
same as in the United States. seIf-protsc
ton. In other words. h. explains. thu
competition is SO intense that practically