New-York tribune., 1902-07-18
NEW PUBLICATIONS.
A SYMPOSIUM ON THE TRUST.

THE TRUST: ITS BOOK. Being Presentation 1sntsa N
of the Several Aspects Of the Latest Form 1n,t OF
Industrial Evolution. BY Charles X, Flnt; nna;
and Francis B. Thurber. Edited by James ID.
Bridge. limo. pp. xxxviii. go. Doubleday rage
& Co.
This is argument for the great conpina-
lions of capital that the most recent devei-
cpu,ent of modern Industrial conditions. The
seven ESSAYS contained in the book are con-
tributed by men who have been closely con-
nected with such combinations of capital, and
who present the most obvious arguments in
their favor. There viii be no expectation. there
fore, of finding any serious scientific eco
nomic discussion Of the subject: but the 'prac-
tical" arguments Of practical men will be found
set forth in fun. They not new. but a GER
tain weight will doubtless be given them by
the Importance in the financial world Of several
of the names attached to them.
The contention running through them all is
that industrial Capitalization is a natural and
inevitable process. THE time has come" says
Mr. Flint, when indiscriminate criticism of in
dustrial combinations should be condemned"
and he declares that the only arguments used
on the other side those based on extreme
cases. The consolidation of manufacturing in
terests insures cheaper production through the
division Of labor, and the bringing of them under
control means continuous production. Mr.
lions find it TO their interest to charge higher
prices for their products and gives an instance
Of a company in which he interested that
was bought out:
We had been depending the protection or
trademarks and patents and had been selling
our goods at a correspondingly high figure. To
the surprise of some Of my former associates
the policy of the committee was to reduce the
price so per cent The profits dropped from
so per cent on the original cash investment 10
a EQrs+ Ky1sNCr n NJ
provernent of the article and its cheapness, the
consumption doubled. The manufacturing
facilities were correspondingly enlarged and i'm
proved. and although little or no money was
made at first, at the end Of two years the pronts
were not only larger than before, but the busi-
put upon basis 10 insure It's con-
ftuued and permanent success. Its goodwill lay
thereafter not in the monopoly which patents
and trademarks had insured to 1t under the
law but in the monopoly which comes through
the sale Of the best article at the smallest pos
sibIe cost The consumers and the shareholders
were in the end equally benefited.
Mr. Dodd in his essay Aggregated Capt.
tai" says of the recent antitrust legislation:
There have lately been placed the statute
hooks of twelve or more States enactments
which, If they could be enforced, would make
an ordinary partnership criminal. and In at
least six States enactments which infict the
penalty of fine and Imprisonment for uniting
persons skill acts for the unholy purpose,
among others, Of reducing am not mistaken
In the word-of reducing the prices OF commodl-
ties modern federal law also exists WHICH,
literally interpreted, forbds business Of any mag
nitude. but federal Judges have thus far found
II easier to dismiss proceedings under II than
TO guess at its real meaning.
The effect of Industrial combination has not
been, he contends, such as TO justify such laws;
new avenues OF labor have been opened, the de-
rnand for labor has increased, wages are higher.
the cost of living lower and the condition of
the laboring man bettered. One of the chief
criticisms directed against combinations has
been the excessive valuation put upon property
taken over; as Mr.. J. ]. Hill states it, factory
worth $4,000 to-day is rated at S15OOoO to-
morrow because il has been combined with
Others under one managing head This, accord
ing TO Mr. Hill. has not ali the force that might
appear from the bald statement. because fac
tory is worth what it represents in earning
capacity. and if under combination, its earn
ing capacity is trebled because Of economy OF
production it is not unreasonable TO say that its
value has been trebled, even though nothing
tangible has been added TO its material assets.
1t is a business proposition" as Mr.. Hill calls
it. that has become extremely popular OF re-
cent years and that may have 20 pass through
some difficult experiences in the future. AS to
railroads. in which Mr. Hills word is of especial
weight consolidation so far has worked as sat
isfactorily as it has in other lines Of business.
With its more economical operation It means
as much to the producer and consumer as to
the stockholder-more reasonable rates, as the
law puts it, and more certain dividends.
At the end Of the book is a collection of rep
reSentative opinions" from men Of many views
touching the subject of trusts with more or less
illumination and authority and the appendix
contains a reprint Of Mr.. F1int's testimony be-
fore the United States Industrial Commission
and a list Of books relating to trusts