The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-27
CONCERNING TRUSTS.
Not by Any Means so Certain Now
That They Have "Come to Say"

Not by Any Means so Certain Now
Tnat They Have "Come TO say"
Philadelphia Record.
When the billion dollar Steel Trust was
organized the public mind. not merely in
this country. but throughout the world.
was startled by the vastness of the combi-
nation. BY those who fondly admire sue
cess in all its forms 1t was confidently pre-
dicted that this was the last word In in
dustrial and capitalistic development. The
trusts, it was said, had come to stay"
bearing their justification and necessity
with them in the cheapening Of production
and in the assured stability OF prices
In this development the great Morgan
steel combination became the excuse for
other preceding or succeeding trusts that
have already collapsed or are now topping
to their fall. From its character and
progress conclusions can be safely drawn
as TO the general condition OF the industrial
trusts that have been formed on much
the same financial basis, though Ii towers
so high above all the rest of them. II Is
not the mere whim of spectators In Wall
street that has brought the common shares
or this gigantic combination lower and
lower, until on Saturday the minimum OF
IL was reached The cause lies deeply in
the nature OF things. Ii is not owing to
the influence of the stock exchange that
in a comparatively short time there has
been a decline IN the prices OF iron and
steel. attended with restrictions Of pro-
duction and with earnest efforts TO COM
bat competition at home and abroad.
The same general prosperity of the coun-
try, flowing from abundant crops and from
favorable conditions of Industry. to which
the Steel Trust owes Its rise, has also
brought competitors into the field TO dis
pute its control of the markets. While
compelled to absorb competing companie
on their own terms, fresh rivals fully
equipped for cheap production are con-
stantiy appearing TO increase the supplies
and cause a lower range of prices. At the
same time the arbitrary scale of prices
dictated by the trust has invited i'm poI ia
tons Of iron and steel from England and
Germany, in spite of the exorbitant rates
Of duty.
That stability OF prices which was 20 be
fixed by the trust, with its gigantic control
OF capital and labor. has failed OF reslixs-
ton. Every days experience shows that
this combination has not power enough
to resist the laws OF trade and put its own
limits on prices. While driven TO make
treaties with minor competitors for tho
maintenance of prices. Ii has found that,
like other treaties, these cannot Withstand
the dictates OF interest necessity. In
the abundance Of production the trust must
look to foreign markets for absorption OF
its surplus products at lower range OF
prices than the tariff enables IL and its
rivals to maintain against consumers at
home
most articles of consumption, which must
be constantly renewed, the prices OF steel
as we'll the shares OF the trust may
decline still further without seriously az
fecting the general prosperity of the coun-
try. As fabric not having its basis upon
sound industrial and financial principles.
this with all other trusts of the same char
acter, can be maintained, il at ALL only by
constant violation OF these principles liz
is when pressure or reaction comes. like
that which has overtaken the Steel Trust.
that the real nature OF these combina-
tons stand revealed. The laudators OF tho
trusts are by no means so certain as they
were year or two ago that THE trusts
have come to stay" Already the shores
of the industrial are strewn with too
ma1y OF their wrecks.