The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-18
The Trust: Its hook.

1.-The Trust: It's Book is a volume OF 255
pages, published by Doubleday, Page & Co,
New York, edited by James II. Bridge, and
devoted TO a presentation OF the several
aspects of the latest form of Industrial
evolution. The serial articles were written
by the editor and by Charles r. Flint.
James ]. Hill, S. c. T. Dodd and Francis b.
Thurber. These papers are followed by an
appendix which contains the opinions. both
favorable and hostile, OF representative
men regarding trusts; the testimony of Mr..
Flint before the United States Industrial
commission and a list Of books published
on both sides Of this important subject
1t is time, in the discussion OF the organ
ization Of extensive industrial combina-
tions, popularity called trusts. TO assume
that the majority of intelligent people ap-
prehend no real danger from a monopoly
which such combinations may attempt TO
create. The experience Of the country In
recent years has been that when greed
inspires those who imagine that they con-
troll the output Of an article and demand an
eXtortionate price, the large profits tempt
competitors to enter the field 20 the de-
struction of monopoly. II is safe TO say
that no monopoly can be created until
I
patents or by a great injustice by railroads
to favored meat packers and large shippers
like the Standard oil Company. The trust
that is, the consolidation OF a number OF
plants under one management, Is certainly
the natural fruit OF industrial development.
Combination is necessary 10 secure capital
for extensive production. III Is a develop
ment which began with the individual
whose SKILL not his capital, was followed
by the company or firm composed OF two or
three men with skill and capital; which are
succeeded by the corporation and the fac
tory system, and now the combination OF
the plants OF several corporations into one
huge combination under single manage
ment. That such combination can greatly
reduce the cost of production is without
question Mr. Flint says in his paper, AMI
also in his testimony 10 the industrial COM
mittee that the economies OF production
under a large trust are so extensive that
an American trust can pay the American
scale of wages and compete with Europe
without a protective tariff The argument
which each Of these essayists presents In this
trusts book is sustained by history and is
irrefutable. Corporation and association OF
ca pital and labor mark the worlds prog
ress Where the individual man r. found
to-day without association, there Is the low
est form Of human existence. Associated
! capital with labor have cheapened products
so that the kings Injuries a hundred years
ago are the necessities Of the multitude
/ to-day.
| If the trusts would carry out the principle
/ laid down by these writer's. namely. that IL
/ is the true policy OF the trust 20 sell goods
/ at a small profit so as 10 make them cheap
/ and thus broaden consumption. such COM
binatiOns could be regarded as benefactors.
The trouble is in the danger that narrow
\ sighted greed Will not aid in the extension
/ Of the benefits OF the trust much IL
/ can 10 the consumer. In a general way. the
/ railway lines. by consolidation. have great
/ Is reduced the cost OF transportation, but
I competition has influenced most OF them.
The Standard OIL Company Is cited as
\ other instance OF a trust which has i'm
/ proved the quality and greatly reduced the
cost OF its product. But no one can tell
! whether or not of would be cheaper than
! il is to-day IL the Standard oil Company
had not received rebates from railroads.
! and resorted 10 every device. fair and I'M
/ fair TO destroy competition. Mr.. Thurber
! filming Company as a benevolent trust which
/ has reduced the prices Of sugar. The sugar
i trust has tried 10 be a monopoly. It's con-
/ ditions imposed uDon dealers are monopo-
/ listic in their tendency and In restraint II
/ trade. This trust marked prices up and
/ down regardless of the cost OF raw sugar.
/ During the years when the sugar trust
/ power was unQuestioned. IL made its largest
| profits by Mr.. Thurber's own showing. lie
| third OF cent a pound for refining but he
| does not give the figures. When this trust
| was I'm its glory, In 1873. the price OF re-
| fined over raw sugar was 81 per cent Now
that there is sharp competition. the diner-
ence between the raw and refined has been
| lowered. The American Sugar Refining
/ Company. like the Standard on Company.
| was designed 10 be a monopoly. The latter
is so to-day, putting up and down the price
Steel Corporation is the one great combina-