New-York tribune., 1902-01-27
THE GREATEST BATTLE
ENGLISH CONSERVATISM IN NEGLrc,
ING THE ADVANTAGES OF IMPRovrr
MECHANISM AND INDUSTRIAL.
COMBINATIONS.
London. January lS

COMBINATIONS.
London. January n
There are few oldtime Cobdenites left 4, r..
land. but their theorems and platitudes r.n.s
IN current use. Whenever the question of tr,s,
ana combinations of capital is raised there ,
TRADITIONAL method OF dealing with IL tn,
10 'he assumption that while the free trade sv.
tenn has not prevented the formation Of tr,.,
II has operated as a check and restraint. -,
this opens the way for the conclusion thar th.,
are fewer and less effective combinatio,s =, -
dustrfal capital than there would have bs.,
there were protective tariff Economics. a.,
manufacturers have been saying this for MAJ,
years from sheer force of habit and contanat,.
strenuously that while Cobden's principles hav
not operated as benehcially as he anticinatss
the world not having been converted to FRA
trade, competition IN various industries h.
been less hampered in England than II has bs.
In America under high tariff system. Tbar
are sceptics, however. who do not consider -,
reasoning convincing. They are disposed 70 10,
more stress upon the inertia OF English con
servatism than upon the saving grace q, y.
trade as a safeguard against trusts and In
dustrial consultations According to their y,su
English manufacturers. merchants and bank
ers are less flexible than the Americans \
or
ganizing great enterprises based on the she's
weight Of immense masses OF capital; and con
sequently trusts and combinations have bee,
fewer in number and more restricted In soon
and operation, and constitute less formidab,
menace to free competition. Conservatism ha
stood in the way OF combinations as 1t ha
blocked the improvement of mechanism am
plant
The lack Of fexibility in the adoption OF In,
proved mechanical appliances is frankly con
fessed by the leaders OF many English indus
tries. THE Times" has been publishing an
ticles by experts in the iron and steel trade
contrasting the backwardness and sluggishnes
OF English manufacturers in the improvement
of machinery with the enterprise OF America
rivals; and at the annual conferences Of tn
engineers and ironmasters the destructive com
petition of Germany and the United States hs
been attributed to superiority OF plant Tn
trades unions may have opposed and retarde
the introduction of labor saving devices bu
the conservatism OF employers Is largely re-
sponsible for the retention OF mechanism an
processes which have been discarded by nor
enterprising rivals abroad. An energetic Anne,
lean inventor said to me not long ago: ''Ns1
ideas are not welcome in English industries
When an American manufacturer finds out tha
his plant is behind the times. he sells It for oil
iron and substitutes for IL the improved mech
anism which will enable him to compete wit
the most progressive firms. When an Englis
manufacturer Is convicted OF employing proc
esses which have been superseded, he decline
to make fresh investment Of capital, and goe
numbering along in the old way That Is th
real cause of the industrial decline OF England.
Not only has England fallen behind IN eIsc
tricaI mechanism OF every sort. but her iro
and steel plant has been completely outcassei
in the United States although for generation
her pre-eminence was unchallenged. The textl
and other industries exposed to competition
from countries where every new mechanical da
vice is adopted soon the superior eficienc
or economy has been demonstrated One
the strongest arguments used by advocates o
analgamation OF competing firms is the neces
sity for combined effort for the Improvement
OF mechanical resources. so that the industr
as a whole may be enabled to hold its sroun
against foreign competition. A characteristic
feature Of every consolidation project Is re-
serve OF fresh capital for replacing OLD machin
cry with a new plant OF the highest efficiency.
Conservatism also paralyzes the capitals
class when there Is an urgent necessity for nes
forms Of Industrial and commercial organization
and for more scientific methods OF financing
great trades and cheapenIng the processes
manufacture. distribution and transportator
English firms IN the iron and other tndustrie
not only make use OF inferior mechanism, ou
they also engage In ruinous cutthroat compsu
ton one with another. and are undeterred D
steady decline in profits and earning capacity
When they are urged to unite for self-preserva
tion they hold back because their last annus
balance sheet has disclosed low percentages
profit. and they are unwilling to have thes
plant and the goodwill OF their business ap
praised in a practical way; yet they can ha"
no assurance that there will be any improva
ment another year. and there is a strong proc
ability that the average earning capacity VII
be reduced with every fresh series OF years.
is the inertia Of English conservatism WHICH
must be overcome before combinations Of indus
trial companies and commercial groups can o
effected on a large scale. There are many srea
amalgamations already. and fresh industrial
groups are constantly forming; but the capital
lists in every important manufacturing ousineS
approach one another cautiously and susps
ciously. and are reluctant TO entertain proposaA
for consolidation Of competing interests Ate
enjoying for generations the advantage OF penn
the richest nation earth. England's posiuoI
as the chief money power has been Challenged
and her capitalists are confronted with I'M
necessity for armng themselves with weapon
OF precision in the greatest OF modern connie"
the battle for the worlds markets IN tnA
emergency their lack OF adaptabtlity IN reoN
ganizins business undertakings and introducn'
practical economies IN production. distriouu''
and transportation. through the sheer weight
concentrated masses OF capital. has been as com
spicuous as the lack Of energy on the part Oh 'n'
manufacturers in the improvement OF rneo"
anism.
While the processes Of concentration ans
amalgamation of allied interests have been re'
tor1ad IN, tha tpVra{pa5 conservatism or nd