The Tucson citizen., 1902-09-22
THE ORGAN AND THE TRUSTS.

The Phoenix Republican, the organ
in-chief of the party of high tariff and
trusts in Arizona, in a recent issue de-
votes much space to defense of one
and an apology for the other. The
conclusion reached by our Phoenix
contemporary is summed up in this
paragraph:
Whether reduction of some parts
of the Dingley schedules should he
made at this time is a question which
nobody can answer lightly. Certainly
the evils of the trust-which are vastly
magnified by the vendors of political
nostrums-can better be endured for
season than that the wonderful pros
perity of the country should be over
thrown by handing the reins of gov
ernment over to the Democracy.
This is futile and absurd position.
So long as the high tariff is maintained
the trusts will continue to multiply.
Nearly every day we are informed of
the formation of a new combine. In
the last issue of The Citizen the facts
were related of the organization of
sewing machine trust, with capital
iGation of $30,000,000. This trust will
Frey on every home in the land. will
lew tiibute off the industry of women
a:'d girls and on every garment worn
by i,en, women and children. If the
Reral 'ican party IS kept in power and
the Dingley tariff maintained, every
industry in the country will be con-
trolled by trust within FIVE years.
But one of the evils of the trusts that
the Phoenix Republican carefully over
looks in it's fear of handing the reias
of government over to the Democracy" "
is the danger of precipitating an in
dustrial or money panic 1t is not in
the swindling of investors alone that
over-capitalization is dangerous, but
also in the fact that collapse of com
paratively small number of large con-
Germs will produce fright and financial
to the present time the trust collapses
have been only occasional, but the
failure of the bicycle trust and the al
kali trust within the past few weeks
are warnings that failures may come
In a lump, and if they do, the more
than $4,000, 100000 of trust capita1iza-
tion of the country stands as menace
to all legitimate business.
There is notable recognition of this
fact in a late circular letter of Henry
Clews, the Wall street banker, which
we have no doubt the Phoenix Repub-
lican receives regularly. Although he
takes the optimistic view that the dan
ger is still some distance off, he feels
compelled to say:
1t is true that American bankers are
carrying vast schemes of consolidation
into effect, locking up enormous sums
of capital, and that the evil of over
capitalization is one that must eventu-
ally bring retributIon. But the day OF
reckoning is not yet IN sight; we can
rot measure by old standards; the
country is growing at a magnificent
pace and the limits of development are
yet unseen, while our extraordinary re-
sources permit abuses and strains which
can be endured far beyond what Gus
tomary standards or foreign opinion
ever deemed possible. A good harvest
assures another season of good bust
ness, postponing the reaction which
otherwise might have come and which
might have been far better for us ir
the long run.
But Notwithstanding this quietinE
and reassuring view, he cautions in
ycstors to go slow in putting none,
iutl the vast issues Of securities which
the trust promoters are issuing, say
ing:
The public have not thus far shown
any disposition to relieve these gentle
men of their self-imposed burdens a
present prices; already there are indi
cations of inside selling; and, as al
reasonable expectations, based upoi
prosperity or the effects of prospective
alliances, seem to have been reason