The Providence news. (Providence [R.I.]) 1891-1906, 1903-12-28

IL has been urged that internauonai
| competition is absolutely essential 10 pro-
tect the people from the aggressions OF
what are popularity termed trusts. Some
go so far as TO assert that these modern
instances of the tendency TO combine are
directly traceable TO the Protective sys-
tenn.
This charge Is made I'm absolute dis
regard of the fact that combinations are
relatively as numerous In Free-Trade
Great Britain as In this country. and that
their origin must be sought for I'm re-
mote antiquity. There is abundant evil
dence that the ancient Romans formed
syndicates, and toward the close OF the
Middle Ages Germany produced an In
stance OF organza tion more effective. per-
hsps, than any Witnessed In these days.
The only thing which distinguishes the
modern system OF combination Is the mag
nitude of some OF the assembled interests.
The American syndcates are on greater
scale than those OF any other country. be-
cause the wealth Of the people OF
the United State surpasses that OF all
other people and because the resources
yet TO be developed surpass those OF any
other nation.
/ There is no evidence. however, that
the colossal size of these combinations
makes them a greater menace 10 consum-
ers than they would II competition were
more general or II IL were confined wholly
10 individuals Indeed, there are con-
ceivable circumstances under which the in
terests OF consumers would be more thor
oughly conserved by q far reaching sys
tenn OF organizations whose securities are
In the hands OF a great number OF people
than they could possibly be under COM
petitive method, which has a. tendency
TO restrict the volume OF production.
Theoretically the great combine can con-
| troll output and prices, but practically II
can do nothing Of the kind There has
been much silly talk on this point dur
/ ing the period OF prosperity recently en-
\ joyed by the country, which IS already
! being refutcd by the logic OF events.
Among other things, IT wns charged
J that the creation OF trusts was response
bic for the general rise in prices witnessed
! since 1888 hut there Is no evidence what
| ever to prove that the rise would not
have occurred had the tendency TO com
bine not manifested itself
There Is abundant proof. on the other
hand. that the phenomenon was attribut-
able to precisely the same causes which
| operated 10 produce or compel advances
In prices on former occasions, not only
! In this country but throughout the west
/ erin world.
The price-lists of the British Iron and
! Steel institute reveal the fact that at vari-
Gus times I'm the history of the manufac-
1
| Kingdom the price per ton has been more
than doubled. This was notably the case
| in the years when We were dependant
upon the British for rails. In 1862 rails
were G7 lis. ton: in 1865 they had gone
| up to El3 2s., and I'm 1872 they sold at
| Els las.
! Other advances equally striking might
be cited, and in every instance investi-
CATION will develop the fact that they
were due to causes which exactly parallel
! those which produced the recent result
| enormously attributed to trusts In
| every case the advance was responsive
! 10 an urgent demand; and when prices
| were put down--they were cut in h',f
more than once-that action was COM
! peeled BY the cessation OF d~rnanl
| Although there were understands be-
| tween tho British rail makers, who were
popularly supposed 10 FIX prices. they
/ me rely served To register the dccrees Of
supply and demand. They dli not attempt
to restrict the former and thsy took full
| advantage OF the latter.
| When American consumption deosclsCd
| the British rail makers. who charged
els lts. a ton In 1872 cut the price, and
| In 1873 they were charging less than half
! that amount. Their combination did not
avail TO keep up rates In the face OF
decreasing demand. What the Brit
ish ironmasters found themselves un-
able TO do the American manulacluTtTs
! cannot hope TO accomplish.
! II any one doubts this let him investi-
gate the causes that induced the leading
| steel and iron manufacturers OF the
| United States. at n meeting held I'm New
/ York on November 5. 1903. 10 reduce the
price of steel billets from ST to s2i ton.
! A frank inquiry will develop the fact that
| the so-called trust Is IA powerless 10 keep
4 UP prices i'm the face OF diminishing de-
] 1ix-fAs N
| competition with each other would be-
/ II Is even doubtful whether great con-
| Germ organized on the lines OF modern
/ trust is as potent In the premises as In
dividuals were I'm the DAYS before promo
! ton became the fashion. An enormous
stock company must meet its obligations,
/ and can only do so by continuing to pro
/ duce until the point OF selling at "A loss Is
reached: an individual may suspend oper-
alton when profits become too small TO
/ tempt him.
! The great steel trust has acquired large
bodies % iron ore, which In the nature
Of things must become more valuable
as the population of the country and the
world increases. III these mines were I'm
/ the possession OF private owners II H.
conceivable that they might ne permitted
| to remain unproductive; hut having been
/ acquired by a company whose existence
! ls dependent upon production they must
! he worked
/ In the course ot the industrial inquiry
/ made by the commission created by con-
/ gross. Mr.. Schwab OF the steel trust ex-
pressed the view that tho corporation, of
which he was a member was not over
/ capitalized. because Il owned vast Gro
bodies which would Become extremely
valuable I'm the future. He argued that ~
| the rate consumption was increasing. the
deposits OF a certain class OF ores would
be exhausted In less than fifty years.
This condition OF affairs he assumed.
would enable the United states Steel CON.
/ pany 10 anticipate the future by permit
/ ting Il 10 make its charges commensurate
! with the approaching scarcity. There Is
I little doubt that his opinion OF tho dura-
ton OF the supply Is sound. but he APP
4 pears to have overlooked the fact that
I the passage Of the ore bodies from the
control OF n few persons. who. like spccu-
! lators In real estate In a city. might have
| waited for the Increased value which
/ comes from n demand created by the ex-
! panslon OF population. has frustrated the