The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-09-04
Causes Sensation. {,

commercial jurisprudence will even tu-
ally be entirely changed. The com
mittce, he said, had reached the
unanim6ust conclusion that mUdern
industrial combinations should be
stayed
Hon. Charles l.. DIandcrSon aof Ne
braSka said the report Of the commit
tee had filled hinl with amaZement,
surprise and indigna tion. He. said
the report vas calculated. to rend tile
association as under and he resented
the attempt to turn the body into a
political hustings. : He asked that the
report be read. There was opposition
to the motion and considerable con
fusion. The convention agreed tt
hear the report at once. 1t was read
by Chairman Logan and was fully dis
cuSsed.
SOME PLAIN TALK,
On the subjects or trusts THE report
says this is til; Important question
now before the American bar. Tho
report adds:
The modern combinations prj-
mary objects Is to control trade and
commerce in plain articles Of produc-
| oAOti htiNt ~ llOlC vi lCoS pcl-
feet monopoly in the place of more
or less free competition. 1t changes
entirely the basic principle OF CONNER
cial relations between man aud man
il they are to continue to grow and de-
yclOp in the future as in the past the y
will render necessary most important
changes in the principles Of our com
mercial laws. Combinations as an
economic force is as fast coming tC
take the place Of competition. We
are now having combinations OF com
binatitnS. The United States Steel
corporation is Il combination or a
dozen heretofore competing producers,
who themselves we're combinations Of
still other producers, and these in
turn often combinations. of still Others.
1t is estimated that the Standard OH
company has taken, by contract or
force, the business Of IL, GOO I GorporiL-
tions and merchants in iallEparts, of,-tle
:tlnIon:1 Elc few present grfstGas IA /
road lines Of the country have. been
made up by the combinationStofss fsshun-
dreds Of smaller lines, some extensions
Of one another, and other competing
lines. sFFl..s, .ii7
No one know but that within THE
next 10 years a greater than JysPier-
pont Morgan will arise who will com
bine into one organization all the iI-
dustries Of the land SO that the work
man who works for wages can find but
one possible employer, and the pur-
chaser OF wares but one possible seller.
The steps toward the formation of
one industrial corporation, which
shall crowd out all other corporations
and assume to itself all the Industries S
Of the land, have been already more
than half taken. 1t is not SO far to
to 20 now to that end as we had to &c
TO reach present industrial conditions
DESIRABLE AIoNoPLIsT.
"a monopoly is economically desir-
able; that is, for the monopolist. The
United States Steel corporpation can
produce, no matter what it sells them
for, its goods cheaper than the ele-
ments out of which the colnbinati tion
is composed ever produced them. The
Standard Oil company is economically
holy for it pays 40 per cent. dividends.
The sugar trust is economically COR
rect, for whereas the individual sugar
retincrS lost money on small capitaliZa-
tion, the sugar trust pays big dfvi-
dends on large capitalization. The
railroad combinations are economically
impregnable, for they pay. If Mr..
Morgan's shipping trust aud Mr..
Schwabs shipbuilding trusts are fail
urcS they arc exceptions to the rule.
We cannot, therefore, rely on natural
fnropy m flNn In n Il
nand or on economic considerations
to limit the growth of modern com
binations. II they are undesirable,
II the people of the American nation
would be better Off without them or
with limitations put to them, they
must put those limitations on by the
action OF their legislatures, their con-
grcSS and their courts. The American
bar must act and the American Bar
association must take the lead. If the
Northern Securities corporation had
been allowed to go on, the next thing
to follow it would naturally have been
United States Securities company,
Which would hold the majority or the
stock Of every railroad where the
American flag llies The report pro-
| pOSCL utiC BOIlOTltIS lClIlCtllCSs
TIE FOLLOWING REMEDIES:
First: We can tax them to death,
or, II tllat is loo radical remedy, we
can tax them until their growth and
enlargement is inipcdcd. There are
constitutional provisions requiring
direct taxations to be uniform, and
in view Of these provisions, it is pro-
badly impossible to discriminate in
the matter of direct taxation against
corporations holding large amounts Of
taxable property. There Is, however,
Il franchise tax imposed by most OF
the States upon corporations at tho
time Of their incorporation and an
nually thereafter. This franchise
tax is in almoStall States in some way
graded so as to tax the small corpora
Lion at a higher rate than the largo
one. The first million pays higher
rate than subsequent millions. In
our judgment the degradation should
he continued, but it should be grading
up instead OF down. We would leave
perhaps, the first hundred thousand
free, and the first million cheap, and
raise the rate with each succeeding
million. The United States Steel
Corporation now has Il capitalization
Of something over one thousand mil
lions. The graduation stages might