The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-28
Basic Principle OF Commercial ReIa-
tions Between Man and Man Is
Rapidly Changing.
MoNoPoLIES ARE GROWING
GREAT COMBINATIONS GOBBLINo
LESSER COMBINATIONS.
Unions of Employers and Unions Of
EmplOyes-Report Presented 10
the bar Association.


morning session of the American Bar AZ
ISOLATION to-day the annual address was de-
livered by Hon. Baron B. Colt, OF Rhode
Island, United States judge from the First
Circuit. Judge Colts subject was the RED
sonableness of the Law" THE common law
is nothing but reason" was an opening SEN
tence. which was the keynote OF the paper.
The report OF the committee on legal
education was presented by Joseph H
Beale, of Massachusetts,.
Walter S. Logan, OF New York. made
verbal report from the committee on COM
mercial law. He commended the national
bankrupt law and then discussed the trust
question. He said IL would have 10 be set
tied by the lawyers; IL they did not, the
demagogues would. If combinations con.
tinue competition viii cease and commercial
Jurisprudence will eventually be entirely
changed. The committee, he said, had
reached the unanimous conclusion that mod
ern industrial combinations should b
stayed.
Charles F. Henderson, Of Nebraska, said
the report of the committee had filed him
with amazement. surprise and Indignation.
He said the report was calculated to rend
the association asunder, and he resented the
attack TO turn the body into political hust-
ings He asked that tho report be read.
There was opposition to the motion and con-
siderable confusion. The convention agreed
to hear the report at once. 1t was read By
Chairman Logan. and was very fully dis
cussed.
THE REPORT.
On the subject Of trusts the report says
this is the important question now before
the American bar. 1t says combinations are
rapidly driving out OF business the small
dealer and the small producer. These two
classes heretofore have furnished the larg-
est number of petitioners in bankruptcy
courts. But now industrial combinations OK
gigantic magnitude. too large for bank
ruptcy court to manage and too rich to need
ever to be called before 1t, have been sub
stituted. The report adds:
''The modern combinations primary OBJ
ject is TO control trade and commerce IN
plain articles OF production and TO subsu-
tute a more or less perfect monopoly IN
place of a more less free competition.
II changes entirely the basic principle OK
commercial relations between man ana
man, and IL they are to continue TO grow
and develop in the future as in the past
will render necessary most important
changes in the principles of our CONNER
cial laws. Combination as an economic
force is fast coming TO take place or COM
petition. The producers are combining.
transportation companies are combining.
tradesmen are combining, workmen as well
as employers are combining: everything
seems to be coming into some form OF COM
bination and everybody seems to DC com
biner. The competition that still remains
is fast disappearing. Workmen are refus-
ing to compete for jobs. Labor unions are
charging the spheres OF their activity and
extending their operations. The union or
the employers is still stronger and more
far-reaching than the union OF the work.
men.
eve are now having combinations OF
combinations. The United States Steel Cor
poration is a combination Of dozen here
tofore competing producers. who themselves
were combinations of still other producers.
and these in turn often combinations OF
still others To trace them back to their
beginnings is like discovering the multitude
of sources that go to make up the volume
of the swollen Mississippi. The property
which the Amalgamated Copper Company
now controls was once perhaps thousand
mining claims, each one very likely owned
in common by half dozen miners.
1.-The department store trust has COM
bined the business Of hundreds OF mer-
chants, some portions OF which they &C
quired by purchase and others in some
other way. 1t is estimated that the Stand
ard Oil Company has taken, by contract
tons and merchants in all parts of the
Union. The few present great railroad lines
Of the country have been made up by the
some extensions OF one another and other
competing lines.
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 ship
owner, individual or corporation that owned
a half-dozen ships.
ten years a greater than j. Pierpont Nor
gan will arise, who will combine into one
organization all the industries Of the land,
so that the workman who works for wages
can find but one possible employer and the
purchaser OF wares but one possible seller.
The steps toward the formation OF one uni
yersal Industrial corporation which shall
crowd out all other corporations and
sumo TO itself all the industries OF the land.
have already been more than half taken.
1t is not so far TO 60 from now 70 that
end as we had TO go TO reach present In
dustrial conditions.
WHAT TRUSTS DO.
Monopoly is economically desirable; that
is. for the monopolist. The United States
Steel Corporation can produce. no matter
what 1T sells them for. its goods cheaper
than the elements out OF which the combi-
nation is composed ever produced them.
The Standard Oil Company is economically
holy, for il pays 40 per cent. dividends The
sugar trust is economically correct. for.
whereas the individual sugar reflers lost
money on small capitalization. the sugar
trust pays big dividends on a large capitali-
zation. The railroad combinations are
economically impregnsble. for they pay IL
Mr. Morgan's shipping trust and MI.
Schwabs shipbuilding trust are failures,
they are exceptions TO the rule. We can
not therefore, rely on natural forces, on
the laws OF supply and demand, or on
| economic considerations 10 limit the growth
| OF modern combinations. II they are I'M
desirable. III the people OF the American
| Nation would be better of without them.
or with limitations put on them. they must
puf those limitations on by the action OF
| their legislatures, their Congress and their
courts The American bar must act and
the American Bar Association must take
the lead. IL the Northern Securities Cor
poration had been allowed 10 go on. the
next thing 10 follow IL would naturally
have been a United States Securities Com
pany which would hold the majority OF
the stock OF every railroad where the
American flag files"
PROPOSED REMEDIES.
The report proposed the following reme-
dies:
"Ffrst--We can tax them TO death; or. IL
that is too radical a remedy. We can tax
them until their growth and enlargement
is impeded. There are constitutional pro-
| visions requiring direct taxation 10 the uni
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