The times., 1901-04-19

1lrrle of transactions that the greed of the
I manufacturers was responsible for the
/ dissolution of the association. They de-
waited from the association schedule OF
/ prices, undersold the company's goods,
/ and TO cover up the dishonesty of their
! transactions failed to report such sales.
4 Fines were imposed, but failed to check
I the evil, which spread and led TO the
abandonment Of the scheme Mr.. Burn
! thought that the abnormally high prices
undoubtedly led to violation of the agree
/ ment in the first instance
J During the following five years an open
! market prevailed, and as a consequence
! prices were greatly reduced and several
! manufacturers were obliged to retire
/ from business. The competition which
! prevailed in the open market, Mr. Burn
! said. was most severe on the dealers, ana
! as each season brought a fresh reduction
! their credit was impaired and their abll-
ity to meet their liabilities lessened. The
formation of the National Wall Paper
/ Company in 1893 was the direct outcome
! of the then existing conditions.
Mr. Burns testimony left the impress
sion that the organizers Of the wall paper
! trust were Iarge-hearted philanthropists
/ with a greater share of the milk of hu-
man kindness and consequent amount OF
| consideration for others than is usually
! accredited TO those engaged in the gentle
practice OF "harmouiZing." The manu-
! factIrers engaged in the consolidation
stated that they would be entirely salts
fed 10 earn the same amount in the COM
bination as they had as independent manu-
/ facturers, and in order TO prevent specula-
! tions in the stock Of the company refused
/ 70 list it on the stock exchange. Ihey
/ believed in the theory on which all com
| binations are based, that saving IN
I management and operation would ensue'
and in order to give the direct results OF
| these savings 10 the public one of their
/ first acts was to reduce prices 10 per cent
| As result the trust earned IN the nrst
! wear only two-thirds of the amount earn
! ed the year before by the individual manu-
{ facturcrs merged into the combination.
4 The phiIanthropic gentlemen composing
tbe trust however, accounted Tor lniS
Z i'm mart bv the reduction IN prices, Dy lhe
/ ayrie,,see Of INCORPORATION, and by the in
/ ability to Immediately effect the cohteIl-
{ pIafed economies. Then the company de-
( cided as a further economy TO enurely
| dispense with the jobber or middleInaih'
/ the idea being as before, TO give the pup
q lie the benefit Of this saving.
| This action and the subsequent closing
az several factories in order to concen-
! trate and increase the output OF remain
ing factories proved the undolnG OF the
/ company. New ana lhoepeiiueIlt laCtoi i7 i'5
! were established. and the JoDDeIs, VINO Iiau
1 become intensely antagOnlsuc, hahuleu
I tbG ofTtplt of these factories in prefer
/ euce 10 the trust made goods. me uh-
( grateful public too avoided trust mace
| goods whenever possible. In the lourlh
! year Of its existence, however, the trust
I absorbed one Of its largest competitors
/ and reversing it's policy OF not selhns 10
! fobbers managed TO pay a fair dividend.
I Again this condition Of prosperity Wlthin
/ the orgdniZatiOn excited competition, al
/ fecting the trust 10 such an extent that
! dissoITlti0n was considered. A proposition
( was at that opportune time received from
| am connecting independent conceriS ana
| thc Continental Wall Paper Company was
| formed which became the Selhne agent
| FOR paper manufactured by the NationaI
! Paper Company.
/ FEor several years this concern continued
| in business with varying degrees OF sue
| cess but IL was finally realized that the
| iobber could not be controlled ana as
| result the Continental Company was dls-
! solved, and the National Company Is no"
! in process Of disintegration.
( IN summing up Mr.. Burn said he
/ Thought that consolidation does not bene-
/ ht unless il controls, especially in indus
/ tries in which prices are not based on
| intrinsic value alone. Consolidation in
| of trust" anita gonized the public. An in
| dustrial combination ia Mr. Burns be-
| lief also aided labor in enforcing its de-
| mands. labor being able to concentrate
| its effort on one concern instead of di-
| viding its effort among a larger number
| He gave an example In the case oG the
! block cutters, who prepare the wall paper
patterns for printing and who. at the
| formation of the trust, received $l2 TO
SIS a week. Their union was not effective
| made demands on the centralized concern
| with the result that wages steadily in
! creased until they reached the present
rate OF s25 10 S25 week