The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1903-09-04
American Bar Association
Meeting Considers Cures
for Trusts.
WOULD "a Gig COMBINES
After Long Discussion Of the Report It
Is Recommittsd With instructions
to Report on Forcing Law
breakers TO Obey Law.

elected:
President-James Hagerman. Mis-
souri,.
Secretary-John Hinckley, Maryland.
Treasurer-Fred w. Wadhams, New
York. s- aeE s.
Hot Springs, Va. Aug. 31.-The
American Bar association mad a warm
debate over the report Of the commit
tee on commercial laws, which sug-
gested remedies for the growth OF
trusts. At the evening session the re-
port was reaommitted with instruc-
lions to conf1ne. it to those combina-
The committee on commercial law,
in dealing with the trust question,
says this is the important question now
before the American bar. 1t says COM
binations are rapidly driving u Of
business the small dealers and the
small producers. These two classes
heretofore nave furnished the largest
number of petitioners in bankruptcy
courts. But now industrial combina-
tons Of gigantic magnitude, too large
for a bankruptcy court to manage, and
too rich to need ever to be called be-
fore it, have been substituted. The re-
Object of Combines.
The modern combinations primary Oh
IQCI / s 10 SkooO oAlu AAAAk We u
plain articles Of production. and substitute
q more or less perfect monopoly IN place Of
q more or less free competition. 1t changes
entirely the basic principle of commercial
relations between man and man, and II
they are to continue to grow and develop
In the future as in the past will render
necessary most important changes III the
principles of our commercial laws. Com
as an economic force is fast COM
Ing to AXE the place of competition. The
producers, are combining, transportation
49, tat 49, +r~ - 40
combining, workmen as well as employers
are combining; everything seems to be
coming into some form Of combination.
and everybody seems to be a comhiner.
disappearing. Workmen are refusing to
compete for jobs. Labor unions are en-
larging the sphere of their activity and ex.
tending their operations. The union OF
the employers Is still stronger n more
far reaching h the union of the work.
men. We are now having combinations
corporation is a combination Of a dozen
heretofore competing producers who
themselves were combinations of still 9TH
er producers, and these in turn often
back to their beginnings is like discovering
all the multitude Of sources that go to
make up the volume Of the swollen Missis-
sippi. The property which the Amalgam-
ated Copper company now controls was
once, perhaps, a thousand mining claims,
each one likely owned in common by a
half dozen miners. The department store
trust has combined the business of hun
dreds of merchants, some portions Of
which they acquired by purchase, and
others In some other way. 1t is estimated
by contract or by force, the business Of
1000 corporations and merchants in all
parts of the union. h few present great
ra,t1ea IN it hW the combination Of na hynd peea
of smaller lines, some extensions of one
another. and others Of the competing
lines.
Shipping Trust, a Pet Combine.
The ambition Of the shipping trust, per-
haps the pet project of the great American
combines, has been to control all the ships
that sail the ocean A hundred years ago
there were hardly two ships owned BY the
same individual or corporation, and even
fifty years ago there was scarcely a ship
owner, individual or corporation, that
owned half q dozen ships. No one knows
but that within the next ten years a
greater man than ]. Pierpont Morgan will
arise who will combine into one organi-
cation all the industries, SO that the work
possible employer. n the purchaser Of
wares but one possible seller. The steps
toward the formation of one universal in
tdustrial corporation which shall crowd out
all other corporations n assume to IT.
self all the industries of the land, nave al
ready been more than half taken. It is
not so far to go from now to thai end
as we had to go to reach present indus
trial conditions.
A monopoly is economically desirable:
that is for the monopolist. The United
matter what it sells them for, its goods
cheaper. than the elements out of Which
he combination Is composed ever produced
them. The Standard Oil is eco
nomically holy. for it pays 40 per cent
dividends. The sugar trust is economical Nv
correct, for whereas the Individual sugar
%retiners lost money on small capitalization,
the sugar trust pays big dividends on q
large capitalization. The railroad combi-
nations are economically ~impregnable, for
they pay. II Mr.. Morgan's shipping trust
failures they are exceptions to the rule.
We cannot, therefore, rely on natural
forces, on the laws of supply and demand,
or OF economic considerations to limit
the growth Of modern combinations. II
they are undesirable, if the people of the
American nation would be better off with
out them or with limitations put on them,
action Of their legislatures, their con-
must act, and the American Bar associa.
must act, and tie American Bar asoscia-
Securities corporation had besn allowed
to go on, the mex thing to follow il
would naturally v been a United
States Securities company which would
rallroad where the American flag flies.
How to Remedy Matters.
h report proposes the following
remedies:
4. We cant tax them to death, or If that
IS too radical a remedy we can tax then
until their growth and enlargement are
impeded. There are constitutional pro.
4 visions requiring direct taxation to be
uniform, and. in view of these provisions
1T is probably impossible to discriminate
In the matter of direct taxation against
corporations holding large amounts OF
taxable property. There Is, however. q
franchise tax imposed by most Of the
states upon. corporations at the time Of
their incorporation, and annually there.
after. This franchise tax is In almos,
all states In some way graded so as tc
tax the small corporation at q higher
rate than tho large one. The first $1,000.0 N
pays a higher rate thar subsequent mil
lions. In our Judgment the
should be continued, but 1t should Ne 8
grading up. instead Of down. We believe
perhaps the first 100000 free and the frs,
$l,0OO,0NO cheap, Ind raise the rate witt
each succeeding $1,000,OOO The United
States Steel corporation has a capitalize,
ton Of over $1,000. 900. 600. The gradatior
stages might be slow and easy enough L
please the most conservative, and yet re.
suit In q taxation Of 10 per cent upor
the last $100.0 900 900. How long would TN
United States Steel corporation continu,
under that system Of taxation7
= We can compel them to render better
and cheaper service. II the combinatior
OF the Northern Pacific and the Grea,
Northern railroads Is so great public dis
aster to have. warranted the attention
which It haE attracted II could have beer
prevented much easier than by 100 Sher,