The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1902-03-20
MR.. STERN IN BALTIMORE.

State University at Chapel Hill, engag-
ed IN th5 first inter collegiate debate
5etyeen Johns HOPKINS University o.:
Baltimore aud the North Carolina Uni
versity at Chapel Hill. The debate
vas he'd in Mccoy hall In Baltimore
She G. lestion debated Was: "Resolved,
That modern trusts threaten the future
welfare of the American people,"
The affirmative was argued by Harry
Ward Plaggemeyer and Harry Brinton
Stone of Johns Hopkins, and the mega
tive by Robert Ransom Williams and
David Pony Stern uf the University of
\, rth Carolina.
The North Carolina boys won the
,ebate and came OF with the victory.
Mr.. stera's speech appeared in part in
he Raleigh Post of Friday, as follows ::
Whatever the Trust is or may be it
has to do with business legitimate
phase of life, hence the only question
can be is the Trust legitimate express
SION of business life? This must be
ettled in accordance with business
,rin ciples. 1t must be settled by busl-
less men. The business man always
works to perfect his business methods
that he may become aupreme in his
particular line of business. To..accom-
plish this it has always been necessary
ter him to organize bis industrial forces
into an institution that would conform
to the needs and conditions of the age
in which he lived. Changing and pro-
gressi:e industrial conditions have
caused the evolution of business from
the individual producer to the firm
and from the firm to the small corpora
ton. And the transition from the
small corporation to the large corpora
ton Or Trust is Just as natural and
necessary step in the evolution OF
business as the transition from the In
iividual producer to the firm. For in
the last few decades business has been
making great strides forward. The
posi- olliUes and extent of business
have Increased a hundred told. The
made the market place for the rsmotest
factory. To meet these colossal de-
mands coloss i business organizations
-Trusts-are necessary. Hand In
hand with this extensive development
of trade has )me the demand OF the
home consumer for better goods at
lower prices. The old competitive In
situations tried to meet these demands
and the result was oyer-prcduction,
cut-throat prices, depressi On, panic.
The life of the business man was 81
stake. For self preservation further
conservation Of industrial energy ives
necessary. In answer to this we have
the Trust, combination into large
corporation for the purpose OF estab-
lishing permanent money-m aking
business. 1t has entrenched Itself on
and today permeates cur industrial
system. This success of the Trust may
be best explained by the fact that the
Trust is an application to industry OF
the principle of organized com b1nation,
the principle that is one Of the great
civllizing phases of our life. The pnr-
pose OF the Trust, the use Of the prin-
ciple, is to secure maximum efficiency
in production and distribution, for on
~ by efficiency can it establish a per-
uanent money making business. The
rust comes nearest to the realization
# this because maximum production
ND administration o! the largest mass
ire always cheapest. BY organizing
into the Trust the business man can
run only best plants and tbess to their
full capacity, can fix standard of quail
jty by using and selling only thu best,
can afford opportunity for experiment
tation, can utilize every bit of waste
!Dtc the manufacture Of by-products,
can tide over temporary reverses, can
secure the advantages Of comparative
accounting and administration, can
save large amounts in cross country
freights, can dispense with useless ad-
vertising and useless selling force-in
short the trust gives the business man
maximum efficiency In production and
distribution. Such an institution can
not threaten our future welfare for the
interest of the business man Is the in
terest of the people as the on9 thriyes
so thrives the other. Indeed trust
success in business is dependent upon
good service to the community at low
rates. The only trusts that have sue
ceeded, the only ones that can succeed
a.e the ones thus managed. Unless
the Trusts do sell good goods at low
rates the demand will be curtailed re
sulting In Increased cost of production
and lessened profit; latent capital will
spring into activity and do for the COM
munity what the Trust has failed to
do. If the Trust unduly raised
prices, however little, it might have a
boom but It would lose a business.
That the Trust managers believe that
| business is better than boom is
shown by the fact that the greater part
of the Trusts have lessened prices
Thus the Trust by economies inherent
in its nature, can, must and does in
crease the purchasing power Of the
American public. By so doing 1t bene-
fits the laborer IN bis capacity as a
consumer. But it goss further and in
creases the number of dollars at the
command ct the laborer for the pros
perity of employer and employee flow
from tie same fountain, the fountain
OF cheap and efficient production and
distribution. The trust is the most
efficient producer and distributor !;
| hence the value Of The labore='s SER
vices, his wages, mus; be greater than
in the old institutions. That the
Trust does benefit the laborer is evident
L a.