Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1901-06-12
DISCUSSING THE TRUSTS.

trusts In the literal or legal sense, but
in the discussion over the problem they
present 1t has been found easier to use
the generic term.
This particular symposium Is In a
sense one-sided, us 1t is participated In
only by men connected with the great
combinations, the single exception be-
ing Russell Sage; and Mr.. Sage rather
naturally is the only man of the half
dozen who sees danger in the present
tendency Of capital to consolidate.
Mr.. James ]. Hill of the great North
western combination of railroads; Mr..
Flint, Of the rubber trust; Mr.. Logan,
Of the envelope trust; Mr.. Schwab. OF
the great steel combination, and Mr..
Thurber, who has become a sort of
press agent for all combinations, are
the others who avail themselves of the
invitation of The North American Re
view to set forth their views. These
latter gentlemen see only good In the
present tendency and their reasons are
worth studying.
Mr.. Hill holds that there is radi
cal difference between the present com.
binations and trusts, holding that the
latter are justly criticised, but that
those criticisms cannot properly hold
against the recently formed combina.
lions which he considers good business
propositions. The trust, he argues,
was constructed. on the idea Of adding
to the number of high salaried officials;
these combinations are operated on op.
posite lines, the management being
consolidated by cutting down the high
salarled men and the output being In
creased in a way to add to the number
of workingmen. Their purpose, he
says, is to put an end to wasteful COM
petition and wasteful production
though just how he distinguishes be-
tween this "wastefup production and
the greater production which the com
binations arc intended to promote, he
does not make exactly clear. One part
Of his contribution is particularly In
teresting in view of the present specu-
lntion. He contends that there has not
been over-capitalization or general In
flation, for he holds that earning ca.
pacity, not cost, is the true basis of
value, and that the rise In prices is
due to the country getting to three
cent basis, rs Mr.. Hanna has explain.
ed, all values increasing in conse.
quence.
Mr.. schwab goes somewhat more
Into detail on the matter of reduction
Of expenses under the consultations,
pointing ont that the cost of supervl-
sion under the old system was very
great, and that great portion Of this
is cut on by the consolidation. He
cites specific instances to prove this,
notably that of the Metropolitan Street
Railway Company, where one presi-
dent does. through one system, the
work that was originally done by eigh-
teen presidents under eighteen systems.
He says more laborers are now employ.
ed by the one big system than by the
eighteen and that better wages are paid
Mr.. Schwab contends that "the larger
the output the smaller relatively the
cost Of production
Mr.. Flint, of the rubber trust, nd.
vances the rather unique theory TINT
combination Inns resulted in the distri
button of wealth rather than Its con.
centration. Where under the old con
ditions there were hundred stock.
holders" he writes, there are to-day q
thousand or two thousand. Never be
fore was there such wide distribu
ton of manufacturing interests" In
which, 1t seems, the rubber man eithel
stretches his imagination good deal
or confounds the interests of specula
tors in stocks with those of legitimate
investors.
Mr.. Thurber tries to show that there
has been n lessening Of cost to the con
sumner. The New York World, in lts
review of the symposium. thinks Mr.
Thurber-
rather unfortunate in his defense oil
consolidation. He quotes the figures
juggling them to try to show that con
solidation has meant lower prices. But
he does not succeed in explaining away
the facts shown by his own citations
Of prices-that in 1893, when the Stand
ard Oil Company was still fighting in
dependents, the price Of oil was A.:
cents q gallon, while today, with pro
duction enormously increased and til,
Oil Trust in absolute control, oil is *
cents; that the year before the forma
ton of the Sugar Trust the dIfferenc,
between the cost of raw and of refined
sugar was ca hundredths Of a cent ii
the pound, while today, with more ant
cheaper raw sugar and cheaper rein
ing processes, the trust has raised THU
difference to 95 hundredths of cent II
the pound; that while the Paper Trus
was forming paper was 2O2 cents ,
pound, while to-day the trust charges
ESQ cents pound.
And the World adds: '.In mocker,
of the contentious of these gentlemen
the current news tells of a rise of S.
q ton in steel rails, n rise of 81 a tor
in coal; and according to the report O
the Interstate Commerce Commission
1924 changes in freight rates were mad
on Jan. /, of which SlS produced nd
yances in rates and but six resulted ii
reductions"
These gentlemen may theorize abou
the effect of these consultations unit
they are black in the face, but Their,
will still be room for doubt of thei
value to the consumer. They. may b
all right for the man who holds stock
but the middle man, who is literall,
swept of the face of the earth, and tn
people who either do now or will in TIN
near future pay higher prices for tn
products Of these consultations vii
hardly see the beauty Of them.-At
lanta Constitution.
Preparing to Milk Cuba.
When Senator Platt talks about 1t i
'morally incumbent" on the Unite,
States In the case of Cuba lie is de
ceiving no one, not even himself.
the Cubans accept his amendment !
will not be because they believe sucl
a yielding will procure them any fay
ors here. 1t will be simply and solel,
haco,,co fbov 0ro nopvipro1 tl,ot FL,