Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-01-01

New Orleans, jan LIN an address
before the American Economic Asso
citation yesterday Professor Henry c
Adams, of the University of Michigan
declared the formation of labor union.
to be a provoking cause of trust or.
ganiza ton. First of these causes. h.
said, was the fact that industry, on it!
mechanical side. has developed NOR;
rapidly than on the side of manage.
ment and administration, producing 8
scarcity of business talent. This he die
rot regard as fundamental eXplalla-
don of trusts, but as a contributing
condition of deep significance. a rem
edy, for which may be found in COM
mercial education as u branch of UNI
versity education.
AS a second cause for the formation
of trusts he instanced transportation
conditions and the railway problem
holding that the temporary collapse
of the competitive principle of control
pertains to the transportation and sale
rather than to the manufacture OF
goods, steam trans portation having
effected revolution in market coridi-
tons.
This means" said Mr.. Adams. ''that
the railway problem lies at the bottom
OF the trust problem. ATTIC In making
this statement l am willing to concede
that the solution of the railway prob
lem consists In the guarantee Of equal
facilities to all shippers at the same
price"
The heart Of the problem lies deeper
If the mischievous features of trusts
are 10 he dissipated thru the agency
of railway reform. our program of re-
form can not stop short of the claim
that public utility. and not the cost of
service. should be the ruling considera-
ton in making freight and passenger
rates. But. in my opinion, the rail-
way problem will not have been solved
until the manufacture and the sale of
goods is again brought under the con-
tro, of normal and healthful competi-
ton.
Should this require the nationaliza-
ton of railway property, I find myself
TO admit that the dangers
incident to such a policy are of rela
nvely less significance than the dan
gers with which our Industrial organi-
zntion is threatened by the perpetual
ton and further development of manu-
featuring and commercial monopolies.
Labor Organizations.
Neither the paucity of business tall
emit nor the adjustment of railway
,<.ta nS
social needs, is adequate fully to ex-
plain the tendency toward monopo,y
among manufacturers. Mention must
be made OF the third cause equally POI
tent and infinitely more difficult of
labor organizations.
The question as to whether trades
unions car raise wages is familiar
one to economists, but one feature in
volved in this controversy seems to
have been overlooked, namely, that ev-
cry step in the rise of wages, traceaDle
to the demand of workinen for higher
pay. results in the disappearance of
those employers who, under the old
rate OF pay, were just able to maintain
a profitable existence.
Expressed In sentence. this means
that every successful strike sets in
motion those forces which result in
the concentration of industry. Trades
unions may raise wages. but they do
so at the expense of the small en-
ployer. II this be true. 1t Is evident
that the solution of the trust problem
or perhaps it would be better to say
the adjustment of Industrial forces ana
conditions by which the principle of
competition will be placed
again in the seat of control, cannot be
attained without final determination
Of the relative rights and duties OF
employers and employees and an organ
political, partly indus
.rial-by which these rights and duties
may be expressed and thru which they
may be realized.