Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-08-16
EUROPEA TRUSTS
Prof jerks Report on Them to the
Industrial Commission.
GENERAL TENDENCY TO COMBINE
Less Popular Hostility to Big Syn
dicates Than in America.
EFFORTS AT RESTRICTION
EFFORTS AT RESTRICTION

EFFORTS AT RESTRICTION
After an investigation into industrial
combinations IN Europe Prof. J. w. jerks.
the expert agent Of the industrial COM
mission, has submitted to the commission
a summary of his report, the report itself
being contained in q book Of 400 or 500
pages.
The report shows that trusts have been
thriving for some time in Europe, and
that large combinations and their attend
ant economics there excite less criticism
than In the United States, but are regarded
as necessary In order to meet modern in
dustrial conditions.
There is a strong tendency toward the
formation of Industrial combinations every
where in Europe" he says. I'm Germany
it is probable that the movement has ex-
tended as far as in the United States; and
that the combinations there, speaking gen.
orally, exert as great power over prices,
over wages, and in other directions they
do here. The plan of organization, how
ever, as appears from the report, Is mater
tally different. In most cases the German
combinations are made simply by contracts
between Independent establishments re-
garding output prices. ETC., instead of the
form being that of a single large cor
poration.
'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
l1c and three decisions of the courts made
within the last three years, which render
the contracts among the different parties
to the combination uncomfortable. seem
to have weakened in many respects the
strength of the combinations within them
selves. So far these decisions have pro-
duced little effect, but it is practically GER
tain that If this attitude of the courts Is
not changed and If there is no new legiS-
lation the combinations will be likely to
take on a new form in certain particu-
lars.
I'm England the movement toward COM
binatiOn has not gone so far as In either
Austria or Germany. There were in earlier
days very many local combinations to keep
up prices, and in some cases these rings
have proved very successful. Within the
last three years, however, a very active
movement toward the concentration Of in
dustry into large single corporations, quite
after the form which has been common in
the United States, may be observed.
Less Pronounced in France.
I'm France one finds the movement to-
ward combination much less pronounced
than in any of the countries mentioned be-
fore. The reasons for this are perhaps
two: First. France Is less developed in
dustrially than the other three countries,
especially England and Germany, and as
French industry has not yet entered so
much into International competition as has
been the case in other countries, the same
pressure toward the savings and toward
the added power that came from combina-
ton has not been felt. In the second place,
the French criminal code Is very severe
against fraudulent or monopoIistic at
tempts to control the market.
Protective Tariffs Not Significant.
Protective tariffs do not seem to have
been Of special significance in the forma-
ton of industrial combinations in Europe,
although in many cases the combination
has been enabled to take advantage of the
protective tariff in the way of securing
higher prices. In free-trade England the
combination movement seems to have de-
veloped considerably further than In pro-
tectienist France; but, on the other hand
the movement toward combination has
gone much further in extent in Austria
than In England. although In England the
form of combination is generally more COM
plete.
'On the other hand there can be no
doubt that the combinations at times make
use of the tariff. In France, Germany and
Austria the tariffs seem in general to have
been levied with the idea of furnishing
sufficient protection against foreign COM
petition without placing them much higher
than was necessary to cover the normal
differences In cost Of production. The gov
ernments seem inclined to stand firmly by
their protective policy, and there Is no very
active hostility to 1t. In consequence, the
combinations have no fear of the tariff
being removed and their industry killed by
foreign competition.
Hostility Not Awakened.
Industrial combinations in Europe do not
seem to have awakened the hostility In any
country that is met with in the United
States.' continues Professor jerks.
I'm England one finds in the papers a
little expression of fear Of the newer large
corporations. The government has taken
no action whatever regarding them fur
Their than to pass, August g. 1900, an
amendment to the companies act, which
provides for greater publicity regarding tho
promotion and the annual business Of cor
poratiOns than before.
In France there has been some COM
plant, especially against what was be-
lieved to be a combination on the part Of
the sugar refners, but no general public
movement. One or two cases, in the por-
celain industry for one, have been brought
by competitors against the syndicates, but
the decision Of the judiciary was simply
that there was no cause for action. The
complainant did not show any increase in
price and the fact that decrease in price
was likely to drive the complainant out Of
business did not seem to the government a
public menace.
'In Austria, as has been said before,
the courts have held that under law of
1870 contracts for fixing prices were con-
trary to the public interest and were nom
enforceable. There has been also much
greater alarm apparently on the part of
the public than in either England or France.
There Is at present an inquiry on foot
In the department Of trade and commerce
in Vienna. The committee investigating
the question has reached certain conclu-
sions: The combinations should be recog-
nized as Juristic persons; they should be
put under state control, with a good degree
Of publicity: and the tariff and state rail-
road rates should be arranged SO as to
check their monopolistic tendencies.
The Remedy Not Found.
''They have however. not decided exactly
what the nature of this control should be-
In the bill introduced in 1897 the remedy
for proved monopoly was to be merely COM
plete publicity, though some power was
given the ministry to forbid certain con-
tracts in exceptional cases. Now they rec