The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-07-01
DECLARES TRUSTS 4
BENEFIT 70 PUBLIC
Editor Of Railway World
Reviews Movement.
NATIONAL CORPORATION LAW

Become an Investor rdividuaIisn
Not Destroyed-DOes Not Lead to
Piutoc-acy.
PITTSBJRC. Pa, July Some Con
sequences OF the Trust Movement was
treated Of this afternoon by II. T. New
comb, editor Of the Railway World Of
Philadelphia, before q section on eco
nomie and Social Science OF the Ameri-
can association for the Advancement OF
Science at its annual meeting. Mr.
Newcomb IN part stated.
Mere productive efficiency will not suf-
nee 20 account for the Ta9idity with
which wealth has been accumulated. Ac-
emulation is the difference by which
production exceeds consumption. Just
as the principal incentive to increased
production is the desire for enhanced
comfort. so the primary impulse derived
from the possession OF q greater voIg-le
Of commodities is TO augment cC-su-ar-
ten This impulse has not wholly been
denied. nor should il have been but
neither has there been complete Yield
ins.
Millions of American homes as well as
the never-ebting tide Ct immi zTation
testify 10 the increasing comfort that is
the expression CT Guz-- ated pei. CAPITA
consumption, but 20 more loudly than
The multiplication cf Industrial estab-
lisk-lcnts financed al home and the
rapid redemption Ct the securities -f
railways and factories that were orig
iIsIy constructed with CAPITAL borrowed
from abroad, bss3eak proper self-re-
Btrai1t.
Investments ana Income.
But abstinence from consumption is
not q virtue that is its own reward. Il
VIII not be exercised unless there is a
reasonable expectation CT securing by
present sacrifice 3 future gain Of com
persatoTy magnitude, Neither the much
abused economic man nor the individual
Of flesh and blood, unless his reason is
distorted, expects TO find his comPensa-
ton in the mere contemplation CT heard
ed wealth. There are other incentives
TO saving, but II is iEPCssibIe 20 deny
the Importance. almost exceptional Of
that which arises from opportunity to
invest what has been saved in such
way. as to produce q regular income. Tais
is the alluring prospect that IS held Gus
by The known existence CT stable and
reliable corporate investments.
Increased Opportunities.
The farmer, artisan or Iaborer who
can live sufficiently within mis- income
to accumulate less than So now has Il
within his power tc become a part owner
in the Pennsylvania Railroad, which.
with its affiliated corporations. controls
approximately 1900 miles OF railway
any banker n the United States. and it
VIII bring him an income proportion
atcIy mach larger. but scarcely less Sc
cure. than that 70 be derived from
bond e the United States Government
or a British ccnsol. L more adventUr-
ousIy inclined. re can become, with
equal ease. and an investment little
more than half as great, participant
IN the business Of the United States
Steel Corporation with its mines and
furnaces. and mills and railways scat
tered over almost half & continent, and
he VIII receive IS long as present rates
are maintained, an income Ct quite 10
per cent upon his investment These
are but Illustrations Of opportunities
row open and daily being brought more
fcreibly TO the realization OF all Ameri-
can citizens
Tides Over Misfortune.
When an industry involving many es-
adjustments and covering wide area
is concentrated in the control Of a great
corporation there IS q distribution o.
the risk of loss from purely local
causes to which each separate establish
ment is subjec-- a local railway or d
local mill may have It's earning power /
failure OF agricultural production within
the region tributary 10 it. by disturbed 1
relations with its employees CT between /
ether employers IN ITS vicinity and their /
CT YES, or BY many other local and /
usually temporary Causes- Combination .
affords an effective form Of insurance
against losses Of this character.
The local capitalist who invests in a +
local enterprise IS likely to insist upon T.
the immediate distribution OF all sur
plus earnings. and nc is frequently un-t
willing to consent TO the accumulation 4
Of a reasonable fund as q protection /
against future depression or losses from /
any cause. He has power to enforce his /
demands in this respect that does not lie I
n the hands Of the investor who cor
trolls an interest having equal aggre-
gate value in larger enterprise.
Diffusion of Wealth.
No one denies that the organization
Of the combinations which have charac-
terized economic progress throughout
the last few years has brought to Ger
tain industrial leaders enormous aces
sions Of wealth. The enrichment Of me
leaders is the Inevitable accompaniment
of Industrial progress and necessary
consequence OF the fundamental prin-
cipIe Of modern industrial organization
which accepts the struggle Of individuals
to better themselves, under q regime Of
competition and free contract, as the
best means of attaining general moral.
social and Industrial welfare. Wisely
O. uuwisely, society has made individual
gain the primary incentive to the exer-
else Of industrial skill and foresight
EEen OF wonderful economic perception
have led IN the movement toward the
concentration Of Industrial control. They {.
cav. long before their fellows. The
superior efficiency Of enterprises con
Quoted OF a large scale, and they have
devoted their tremendous energy aad