Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-09-09
The TRADE COMBINES
Industrial Commission Finding
1t Difficult to Agree a.
to Causes.
Excessive Competition Generally
Regarded as Chief Factor
in Forming Trusts.
The Tariff Also Assigned as a
Cause..Preparins the
Report.

Washington, d. c., Sept. 9.-The in
dustrial commission will not be able to
formulate report at the September
session, as was predicted. The COM
missioners find that they have several
weeks work in readiness over the score
or more volumes of testimony they
have taken In the past three years be-
fore they can begin to perpare report
with recommendations for legislation.
They will not be able to take up this
final work before November or Decem-
Der, and it is doubtful If they are even
able to agree upon any definite recon-
mendattons.One of the most puzzling
questions before the commission is that
relating to trusts and combinations.
The review Of the second volume of
testimony on this subject has just been
compiled. Additional information has
been secured relating to the promotion
and financing of Industrial combina-
lions.
1t is clearly the opinion of most OF
those associated with Industrial COM
binations that the chief cause Of their
formation has been excessive compe-
tition. Naturally all business men de-
sire to make profits and they find their
profits falling off, first thru the press
ure of lowering prices of their com
petitors. The desire to lessen too Wig
orous competition naturally brings
creasing profits is thru the various
economics which they think will come
by consolidation.
one or two of the witnesses constd
cred the protective tariff as the chief
cause OF the trusts. They urged that
high tariff duties, by shutting out for
elsn competition. make 1t easier for
our manufacturers to combine to con-
trol prices, and they think that the ex-
per1ence of the last few years i,1stifies
the assertion. Likewise, they say, thru
the nigh profits that come from the ex-
ciuslon OF foreign competition by the
larlH. capltaf has been attracted into
INDUSTRIES mere to SO great an extent
ana with the expectation of SO high
prohts that home competition has been
uiiouly simulated, thereby leading to
COtIlDlNatl0nS.
some other witnesses believe that the
'arl1, While not the most important
cause mas, nevertheless, some influence
toward encouraging combinations:
while one witness. Mr.. La Taste. believes
mat the monopoly of natural opportu-
hi.ies' under our present system of tax
aelon, is to be considered the fundamen- |
tai cause.
Nearly all OF the witnesses who have
CONSIDERED excessive competition as the
chiel cause GO not agree that the tariff
ls 70 pc looked upon as the cause, nor
as rule do they concede that those en-
gagged In the organiza ton of combina- |
lions have any intention of SECURING a
complete monopoly. 1t is, Of course, true
that the restriction of competition is
step toward monopoly, but competition
has not been suppressed entirely, and
they do not believe that monopoly has
been or can be secured. In most cases
they would deny that monopoly was
in any respect desirable.
Considerable space is devoted to de-
scribing the methods of financing these
industrial combinations The effect on
prices was considered at length and the
combinations took the credit for all de-
crease of prices, and took the position
that they were not primarily RESPONSE |
BILE Where there had been increased
prices following the combinations.
The charge has been very frequently
made that the great combinations are
able at times to follow their smaller
competitors into local markets. to make
prices very low there in order to ruin
their rivals, then to recoup themselves
by higher prices in the general market.
Such a course of procedure is generally
looked upon as an unfair method of |
competition. So far as evidence has
been taken before the commission. it |
does not seem that this practice has
been followed by the steel manufacture
ers.
Regarding the Standard Oil Company
the charge was substantiated more or
less completely, and was even acknow-
lodged by some of the Standard Oil off,
cals themselves to have been their
practice in individual cases.
1t has been frequently stated |
that the prices Of goods for
export are considerably lower than
those for the home markets. This
is charged against the combinations as
a business practice that is not justifl-
able, and in some Instances 1t is claimed |
that the protective tariff aids the trust
in this practice. On the other hand, not |
merely the managers of the combina-
tions but other business men, claim that
the practices is justifiable on sound bus
mess reasons in the interests of the la
borers and consumers as well as of the
manufacturers. and that It Is one that |
lie practically universal In all countries.
Mr.. Butler. an iron merchant in Chi
cago, says that this principle of selling
goods for export lower than to home
consumers applies not merely to for
eign sales, but is practically universal
custom even within the home market. A
manufactures in Chicago. for example,
will make, relatively speaking, lower
prices to the purchaser In Omaha than
to one in Peoria, to one in Denver than
to one in Omaha, and to one in San
Francisco than to one in Denver. The
reason for this is that every dealer is
anxious to extend hi1 sales, and will
make whatever sacrifices are necessary
to get the market SO long as he Is not
working at an absolute loss. The farther
he goes the greater his expenses are and
the greater pressure there Ii on him;
consequently the lower his prices.
Speaking generally. the witnesses
have beeniof the opinion that the effect
Of the combinations has been to in
creaes wages. or. 1t any rate, that dur
Ing the last two or three years under
y ~ <1<~ H. - 4