Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-16
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may have better. He sees life and en-
orgy take on, from time to time, new
ferns and phases: and he knows that
government, to be just and effective,
must adapt itself to the changing rela-
tons of men and the varying tendencies
CT the age. He understands that this
generation has something more to do
than to glorify the past and enjoy the
fruits Of its victories.
INDUSTRIAL COMBINATIONS.
The rapid accumulation of wealth and
its unparalleled concentration We're the
distinguishing characteristics OF the last
decade of the ninteenth century. These
characteristics have propounded a new
inquiry for governmental investigation.
The subject has, by common consent,
received a name which, tho once appro-
pirate. is now altogether misleading.
Commercial combinations and Industrial
trusts have provoked much thought
which. as yet, has produced little result.
Originally they We're, as the names i'm
ply, concerts of independent companies
acting thru agreements controlling the
business of the several constituent parts.
In that sense they have substantially
disappeared, and there have been sub
stituted for them interpretations that
have become the absolute owners Of the
property and business affected by them.
! shall not pause TO inquire whether
these vast interpretations are wise or un-
wise. The extinction of the indep dent
trader, merchant and manufacturer may
ultimately impair the standard of man
hood so essential to free institutions II
this shall be its effect, we may deplore
the tendency; but If 1t be wholly over
come, it will not be thru the prohibition
of government, but by that impercepti-
bic warning which changes the currents
OF the world and teaches humanity to
avoid approaching danger. do not be-
Deve that the government can safely
deny the right of association under es-
tablished forms: nor am l ready to con-
cede that industrial organizations, how
ever large their capital or extended their
operation, IL competition remains, con-
stitute menace to the prosperity and
welfare Of the people. The motive which
underlies the so-called trusts and COM
binations is apparent; it is the ordinary
selfish desire to make money. coupled
with the belief that 1t can be more read
fly, surely and largely made In that
manner than by any other. do not
criticise the motive; for 1t is the main
spring Of material progress. and to elm
mate 1t would be to paralyze the arm OF
industry, fatal alike to ambition and inn
provement The most manifest evil of
these tremendous aggregations is their
effect upon competition. Competition is
the paramount law Of industrial life. 1t
may, and very often does. destroy: but
in my Judgment 1t must exist in full Wig
or II we do not desire the government to
assume the power of fixing the prices OF
industrial products. 1t must be clear
that if a single corporation owned and
controlled all the transportation facili-
ties of the United States. 1t would be
absolutely necessary for the government
to prescribe and enforce the rates for
transportation service. /. liz equally
clear that IL a single corporation con-
trolled the manufacture of the important
commodities required by modern life,
and the monopoly was likely to be long
it would be necessary fer the
government to fix the price at which
such commodities should be sold. 1t can
not be successfully denied that every
consolidation, even tho it does not draw
IN all the products in which 1t deals,
rarrows the field of competition. There
may be sharp and effective competition
with two competitors; 1t is. however not
SO likely as with greater NUMBER.
have mentioned these things, not TO IN
dicate that / think there is a perfect
remedy within our reach for much must
be RENTED to the natural laws OF inoi-
yidual enterprise; but rather to point
ont the lines along which interference is
not only permissible, but DEMANDED.
First. the motive to organize sucn cor
8rorations could be. and should be, nm
tied TO the natural desire to make proiit
from the business in which the corpora
t,on is to engage. My observation leads
me- TO believe that many of the large IN
dustrtal combinations would not have
been proposed or effected had 1t not been
for the knowledge that the promoters
or organizers could make stupendous
fortunes in the mere operation OF con-
solidation. It is said, and believe IT to
be true. that more than so percentum OF
the stock Of every trade combination
now in existence Is pure fiction, and the
opportunity to gamble upon the stock
exchanges in worthless stocks has been
uppermost in the minds Of those who
have been most active in bringing to-
gether these organizations. Every cor
poration should be required to have It's
capital stock paid for at par. In money
before It is authorized to transact busi-
ress. The genius for deception has too
oftan heen accepted as legal tender for
stock and 1t should be declared the
counterfeit 1t In. The evil OF over
Capitalization has still another serious
nhase. 1t furnishes an illegitimate mo-
five for excessive prices. 1t Is perfectly
natural for the managers Of corpora
t;on so organized to endeavor to pay
dividends not only upon the real capital
invested In the business, but also upon
the baseless stock which represents
nothing but the audacity OF promoters
and the weakness of the law.
These suggestions would be idle II
there were no practicable remedy for
the obvious wrong. There is no hope of
attaining uniformity thru state legisla-
ton. The state in which the greater
number IL these companies Is organized
secures revenue from them more than
sufficient to defray the expenses OF its
state government, and seems easily con :
WINGED Of the Justice Of It's laws. l be-
lieye the question is a national one, and
thet the time has come to nationalist 1t.
recognize the difficulty of amending
the constitution of the United States;
but / know that whenever the people
are sufficiently in earnest, 1t can. and