Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1902-09-05
SAGE ON THE TRUSTS
DECLARES THEY ARE A MENACE
TO FREE GOVERNMENT.

He Predicts That Morsan's Gigantic Combina.
tiOns Will End in Revolution and Ruin
Prof. Parkin. Of Toronto University, Says
That Morsans Scheme for Concentration Of
Capital Is So Vast That II Astounded Him
The People Will Certainly Revolt.
Russell Sage, perhaps the greatest
individual capitalist in the country,
his wealth being estimated at $780,.
OOO, 600, in a late statement. takes di.
rect issue with J. Pierpont Morgan re-
garding gigantic combinations and the
consolidation of great industries.
To Mr.. G. A. Parkin, a fellow.passen.
ger on the Oceanic, Mr.. Morgan said
during his trip from Europe that the
era OF combination has just begun, and
that he has other vaster schemes
which are to dwarf the billion dollar
Steel Trust and the shipping combine.
1t is this announcement by Mr..
Morgan that leads Russell Sage to
sound note OF warning. The veteran
financier declares that such giant com.
binations are q menace: that they will
inevitably result in one of the greatest
finan.ial panics this country has ever
experienced, and that ultimately the
American people will no longer toler.
ate them.
Combinations of all great indus
tries are menace to the government
declares Mr.. Sage. "Such comhina.
tions are not only menace but are
the oppressors of the people.
"Should An era of combinations en-.
sue, the American people will certain
ly revolt against them and, if they do,
there will be financial ruin such as
people have never dreamed of in the
history of the world.
There are certain times when COM
binations are useful and beneficial.
When several industries are beginning
business, it is we'll for the individuals
to combine for mutual protection until
the business is gotten on its feet.
When the business is firmly estab-
lished, the combination should be dis
rupted and conducted along individual
lines. The embarrassment of one in.
dividual would not mean the wrecking
Of the industry.
at is better to have such industries
divided among individuals than com.
bined into one great corporation, the
embarrassment of which would mean
the ruin of al.
"Industries conducted along indi-
vidual lines have many safeguards.
Instead of but one source, each indi.
vidual has several separate and dis.
tinct from the others to apply to for
aid during any great trouble.
eff combination is continued after
tho industry is we'll established, it be-
comes . monopoly and . menace to
its own commercial life, - we'll ~ to
the government.
"The American people will most
certainly revolt at no very distant time
against the enormous combinatio Of
the various industries. If continued,
the combinations will some day result
in financial ruin, not only TO those in
terested, but to the country.
"The success attending the combi-
nation of some industries has led to
the belief that the same success will
mark the organization Of other great
combinations. This will not prove
true, and before many years every one
will realize it."
Mr.. Parkin, who is President of the
Toronto University, was astounded by
the vastness Of Mr.. Morgan's economic
plans, - revealed by him on the trip.
He said:
"Mr. Morgan's word picture Of the
ideal industrial development is 90 vast
that confess I could not adequately
comprehend it. Combination is the
keynote Of his idea. He declares that
the idea OF combination will progress.
growing wilder and greater all the
time. The steamship trust be used 40
an illustration, saying the present
plan was only the beginning OF an ulti.
mately vast combination of shipping
interests. His idea is 80 great that it
completely enthralled me, and / asked
permission to visit him at his Office
and hear him more fully develop his
idea for me-"