The midland journal., 1901-08-16
Trusts.


formed in economic and social science as
they are in hygiene and medical science,
a course somewhat similar will be adopted
10 prevent the evils arising from uucon-
trolled trusts. A trust is combination of
several corporations engaged i'll the pro-
duction Of one class Of goods, or haudling
the same class Of goods. While each acts
and distinct from all the other
firms or corporations in the same bus
iness, they act as competitors and en-
deavor to get business from each other by
cutting prices, adulterating their goods,
and drumming up custom-using every
device they can think of TO succeed. This
is called competition" and formerly
was believed to be the life of trade"
Larger experience and greater develop
ment have proven competition i'll the end
to be the death of free trade.
The result of this experience has been
that all the firms. associations and cor
porations, manufacturing, dealing and
interested in putting the same class Of
goods OH the market, have formed COM
biuations, by obtaining charter, gen
orally from the State of New Jersey. The
new concern then proceeds to buy all of
these establishments, doing the same kind
Of business, paying the proprietors III an
issue of the newly chartered concerns
stock. In selling out, the original cor
pofations value their establishments at
the outside figure they are worth, and
when the new corporation is formed, and
the many are combined in one great cor
poration, an extra amount OF stock is
issued This new stock is sold if buyers
can be found or it is held and the new
corporation which is now known as a
"trust," assumes to be capitalized at the
value placed OIL all the concerns that have
gone together and the new, or water
stock.
Having a clear field, competition hav.
ing been wiped out by all the rival COM
petitors going together, the new trust
proceeds to raise prices and skin the peo-
pie, to the tune OF all their pockets will
bear. In addition, there is great saving
in the business. The new concern can
operate with many less hands, and num-
erous employees of all grades are dispens-
ed with. So the trust cuts, as it were.
with a two edged sword. II produces at
a great saving over the old system, aud
puts up the price OF its goods.
Now all these several eancerns have a
perfect right to combine their business
under one management. aud economy Of
operating and the advantage of fixing
prices of their goods, induces them 10 do
so. So it has come to pass that competi
ton. which used to be the life of trade, is
no more. The trust has killed it, and the
amount of ignorance or the subject ex.
hibited by statesmen and politicians is
absolutely astonishing.
The trust has come to stay. You may
set that down as one of the fixed facts.
The inexorable laws Of trade have made
it,. The great cost of the best machinery,
the concentration Of capital and labor at
points having the greatest natural advan-
tages for business insure great economy
over old methods.
1t is combination of folly and iguor-
ance to attempt to destroy the trusts and
bring back competition, and free oppor-
tnnities for all. Such things belong to a
dead past. How to place the trust under
the control of law, or reduce it 10 obe-
dience to the law is the question for solu.
ton. When the causes which produced
the trust and the nature of the trust are
better understood the remedy will be
found and applied.
The trust is corporation created by
government, an artificial person, differing
from natural person and should not be
invested with the rights of natural per-
son. The state creates the trust and the
state ought to control the trust An
itimized statement of its affairs should be
published every three or six months, and
a penalty OF fine and imprisonment in
flicted on the persons whose business il is
made to render such accounts, for false
statements or neglect to comply with the
requirements of the law
No corporation should he permitted to
issue what is known as watered stock and
create fictitious capital, often three OF
four times the amount of the real capital.
There would be no difficulty in placing
all corporations under wholesome re-
straint OF law, and the whole nation
would learn from their reports the amount
of wages paid, the salaries Of officers and
the profits. If all these facts wese laid
before the public i'll black and white such
trusts as the coal oil trust the steel trust.
the sugar trust, the telegraph trust and
hundreds of others would be brought up
by public opinion and the courts with a
round turn. Law would soon be found to
keep them within bounds, and the people
protected from their piratical extortions.
The remedy is within easy reach, and
could be readily applied. No stock should
be issued by any corporation above t,a
actual value OF its plant aud necessary