The Tucson citizen., 1902-06-13
EDITORIAL DEPARTMENT

tenders OF combination point 10 the
low price of oil when not influenced
by eXorbitant railroad rates, as is the
case generally in Arizona, as an evil
dpnce of the benefits which the con-
troll of a great industry by trust will
bring to consumers. Compared with
the cost of oil many years ago, present
prices are. indeed reasonably low, and
consumers have no complaint to make
on that score. Judging by the enor-
nous fortunes made by the oil mag
mates, however, there Is solid ground
for the assumption that those who
control this industry exact larger
profits than the cost OF production
warrants. The public does not know
bears TO the cost of producing it. 1t
does know, however, that the corpora,
ton which monopolizes the industry
divides $40 100000 of dividends$annu
ally. 1t would be justified u conclud-
ing therefore that furt her decrease
in the price of oil would y practicable
If the oil company were satisfied with
smaller dividends. While Npil may be
cheap when compared with the prices
which prevailed years ago. it is un-
doubtedly dear when compared with
the cost of production under modern
conditions.
The sugar trust controls according
to its president, more than half of the
refining business In the United States.
II is protected by a tariff from the
cane sugar producers of Cuba and the
beet sugar producers of Europe. 1t
is not an absolute monopoly, out 1t
tolerates no competition within the
territory which it has set apart for
itself. If sugar were admitted free of
duty, consumers In the United States
would be greatly benefited. Notwith-
standing all the economies practiced by
the sugar company, its scientific meth
ods OF production and the advantages
which it enjoys in the matter of distri-
button, Americans are compelled to
pay much more for sugar than .Ae
British consumer. The company al
leges that the tariff on European sugar
equalizes the difference between the
high wages paid in the United States
and the low wages paid abroad The
theory is that the American consumer.
through the tariff. makes the Ameri-
can workingman more prosperous. The
fact is that the sugar company pockets
immense dividends Only the man
ayers know what the cost of produc-
ton is and to what extent the prices
charged for sugar represent a fair
profit on the money invested in the
business.
Recently proceedings We're instituted
by the United States government
against the meat packers on the ground
that they had entered into a conspiracy
to raise the price of meat to con-
sumers In the report of the National
Industrial Commission. recently pub
lished. Commissioner Phillips. a very
conservative man identified with the
manufacturing interests, alleged that
a monopoly of coal-carrying railroads
had, by discriminating rates, increased
the cost to consumers of anthracite coal
over 81 a ton. Mr.. Phillips asserted
that "nine-tenths OF the anthracite
; coal deposits Is owned and three
fourths of the yearly product is mined
by eight lines of railroad that are sub
, stantially in entire union of interest. -
: 1t is evident that the coal combine -
the consolidation of mining interests
and railrOads-has not lightened the
burdens of the public. Mr.. Morgan's s
steel monopoly has not, 80 far as
known, advanced excessively the price
OF steel products. There was no ex-
cuse for such an advance. as the tariff
insures the steel combine handsome
profit on it's products But the com
pany, it Is alleged, has sold steel in
Europe much cheaper than in the
United States. Ii it could cut prices
for the foreigner. why should it not
reduce the cost to American buyers Of
its products?
Before combinations commend them
selves to the American people, they
must show that the prices which they
demand for their products represent
only a reasonable profit. They may
be able to prove that their charges are
not as great as those which prevailed
years ago under the competitive sys-
tenn. That is not fair standard of
comparison. The true standard would
be the actual cost of production in this
age of improved machinery and better
transportation facilities Does the