Omaha daily bee., 1902-06-25
FAILURE OF THE TRUSTS.
Impending Outcome of the Attempt
to ~strangIe Competition.

TO stranRle competition.
New York Journal Of Commerce.
1t has taken twelve years to rehabilitate
industrial capital which may perhaps be
fairly valued at four and a half billions,
with a view to shielding industry from the
operation Of the natural law Of competition,
whilst the reconstructions have made but
Insignificant additions to the original capt.
tails Of the blended corporations. Within
one-eighth Of the same period the creations
of independent industrial capital have
amounted to approximately $4,000, 900, 900.
Reflect upon the significance OF this COM
parison and see what 1t teaches. 1. That
imposing as the expansion OF the trusts may
seem, that OF the Independent industries
is im~measurably greater. 2. That our minor
m~illionaires and our substantial men OF
business have reached the conclusion thai
conservatively financed and well-managed
corporations, with moderate capitals, have
nothing to fear from the competition and
the supposed superior advantages OF the
trusts. 3. That the surprising magnitude OF
the new Independent corporations evidences
a very emphatic and general conviction on
this point. 4. That the independent indus
tries are gaining SO rapidly on the trust
forces that the hopes of the monopolist or
CARNATIONS seem to be already foredoomed.
8. That the process of consolidating capitals
has released numbers Of we'll trained prin-
cipals of successful corporations, who are
new employing their means and experience
in the ranks Of competition; the efforts to
create m~onopolies thus proving self-defeat-
ing. 6. The foregoing considerations may
be regarded as largely accounting for such
facts as the following: That the new In
dependent concerns are SO far generally
doGno nall and dpdEp1 M al HnuItu In Oopn-
peting with the trusts; that a noteworthy
proportion OF the monopoly claimed by GER
tain trusts in their respective trades has
been reduced: for instance, United States
Steel began with a control of so per cent
OF natural output and now claims only 81
on steel and 40 on pigiron; while the
Sugar trust has reduced its claim OF
control from about 80 per cent to so per
cent. AS further symptoms Of decadence,
It may be noted that, Notwithstanding the
extraordinary prosperity OF trade, not a
few OF the trusts are falling far behind
their early promises as to net earnings;
expectations as to economies are failing
more or less to materialize, and In several
notable cases the consolidated concerns
have been disbanded. while others appear
destined either to early follow suit or to
be reorganized on a more conservative basis.
Inc lOItkOluB ldClo lOiSohoNS" Inv !"
pending outcome OF the new movement.
Its origin was based on a misconception OF
the laws that inevitably control the move
ments OF industry and commerce.. and its
issue can only be failure and the return
to natural competition, and that possibly
with greater severity and a lower range Of
prices than has heretofore been expert
enced. The new-fashioned structures, so
far as they may possess substantial back
ing or exercise a material measure OF con-
troll in their respective trades, may be able
10 weather the trial after unloading their
watered stock and otherwise reconstructing
their finances, for. with a sound financial
basis and good management, the magnitude
OF their scale OF business need be no detri-
ment to their success, but possibly a help
to it, but. for the others. It can only be
that a reckoning awaits them proportional
to their reckless Ignoring Of the laws OF
sound finance and their folly In imagining
that they can hold the enterprise OF this
greatest OF all nations in unjust restraint.
There Is no escape from the penalty'o of the
making haste-to-get-rieh policy on which 50
many venturous men have been running for
the last hye years. The inevitable Is in
sight TO men OF sound vision, but the event
may prove to be comparatively distant.