The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-06-19
THE LIMITS OF TRUSTS

When in 1899 the movement toward
large and larger industrial organiza-
tions resulted in the formation dur
ing that year of such combinations
with a total capital in excess of 81
SOC, 900, 900. the public became alarm
el and the trust problem was a SUB
jeet of intense and widespread discus
sion. II was feared that the move
ment would continue to advance with
great rapidity, and that within a com
paratively short space of time nearly
the whole of our industries would be
in the control or under the domination
o. a few great trusts. whose power
would give them a virtual monopoly
in the commercial world.
The discussion was carried OF with
much vigor and no little exaggeration,
says the San Francisco Call. Trust
conferences were held in various parts
o. the country, and some of them were
attended by the foremost men in the
nation. Out of them was a multitude
OF counsel, but very little in the way
o. wisdom. Then the politicians and
the statesmen took up the issue, and
party platforms and legislation in the
states and in the nation followed fast.
1t seemed for a time as if the reg
u~latiOn, if not the restriction and sup
preston, of such combinations would
become the chief issue in our politics,
and the leaders of parties began to
maneuver for position in the coming
campaigns.
Even while the discussion ragged,
however, public anxiety lessened. Il
Was noted that the movement had
reached a elimination in 1899 n
was diminishing in strength. In 1900
the total of new combinations was
less than $1,000. 900, 900, and from
that time on the decline has been no.
table year by year, until now some
OF the largest and most formidable
o. the trusts have been forced to re-
organize and cut down their capital
zauon in many cases. fshile in some
they have had to go out of business
altogether.
From those facts the public has
learned that there is certain limita-
lions inherent in the conditions of
industry and commaraa thot 6y Unite
u the expansion of trade organIza-
lions. The limitations are the result
of the operation of three forces
first, thai of competition excited by
rising prices; second, that of economic
waste that follows when organizations
undertake too much. and third the
force of public opinion that deprives
the larger organizations of popular
patronage when they threaten to be.
come monopolies.
During the period that has elapsed
since the high tide of industrial or
ganizalIon in 1893 these forces hav,
Deen working steadily toward the dis
indignation of Inc threatening comb
nations. Recently the New Yorl
Journal of Commerce pointed out that
while the total capital involved il
consultations during the twelve year
down to June. 1902, amounted t
about 81, 500. 600, 900, the increase O
capital represented in non-trust es
Establishments in only one year an
five months ending June, 1902, amount
ell TO s., 1000, 600 900. And in spite c
all the combinations hat have bee
affected the number of separate mar
u~facturing industries in the countr
increased. according to the census
from 355.415 in 1890 to 512, 726 in 1sJI
or more than Al per cent.
Those figures attest the healthfl
vitality of the competitive principl
in our American life. When CON
petiting establishments can pile u
within less than a year and a half
larger aggregate capital than III
trusts have been able to combine i
twelve years, ii is evident that we al
10 no great danger Of falling victim
to industrial or commercial monopC
lies.
Evidences of the limitations fixed
economic waste upon industrial col
solicitations are equally numerous an