The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1904-10-01
SENATOR NELSON EUL0G|zES HON. R. c. DUNN

mere change in the tariff schedules
which is about the only remedy the DEM
ocratic party suggests, or has attempted
fails to strike at the root of the evil, and
could not by any possibilities reach some
Of the most lnonstrous trusts, such. as the
Standard Oil trust for instance. Besides
a removal of the tariff would not only
affect the products of the trusts, but also
the similar products Of those concerns
butes, and. thus the good and the bad
would receive equal punishment; IN the
one case perhaps deserved In the other
a policy would not only destroy many
worthy and struggling industries. but it
would lead to the forma ton OF mt nter1 1a,,
tOna trusts, and open the doors VIDE LOT
the products of foreign trusts.
Tariff and Trusts.
On this subject, the United States In
dustrlal Commission, composed OF 1Ne
senators and five representatives. and nine
other persons, appointed by the president,
in which both Of the great political par
ties OF the country were represented, IN
1T has been frequently, asserted that
one of the causes, if not the chief cause,
of industrial combinations is the pro-
tective tariff. Experience however. both
in this country and in, Europe, does not
justify the assertion. In our own coun-
try some OF the largest and most monopo-
protection, and in England where there
are no protective duties many combna-
lions have been founded most Of which
no other country than England is the
form Of industrial combinations SO like
that genera5ly, 10 found d in in the United
After further discussing the subject, the
commission comes to this CONCLUSIONS: -,
THE removal of the tariff, then, viii
not abolish combinations unless it a abt9l
ishes the industry. The domestic com
petitors Of combinations might be largely
cut off by tariff reductions or removal
.l>:,. tow, yix-n
crate profits, and yet bs forced to sell lts
products to domestic consumers at much
lower prices. But this sharpening OF lot
eign competition by the removal OF , the
American combinations in some cases to
enter into interna tional comblnatlonsaa
England and the United States, indeed
the thread industry of the world; largely
in the hands of an international comb
nation. The borax trade is also organ
lied internationally, and there have been
efforts to bring about an international
iron and steel combination. In Europe
boundaries. The advocates of lowering or
removing the tariff in any line OF IN
dustry should inquire carefully wiener
national combination, and II so, Wnetner
such an international trust would be de-
sirable. The possible effect upon wages
of a reduction or removal Of duties must
also be considered, and the further pos
sibility of admitting to this country tne
surplus stocks Of European manulactu;r-
ers, at rates so low as to seriously GRIP
pie our home manufactures. II our man,
ufacturers extend their foreign 1narkets
by selling at low rates abroad, the 9;y,n put
facturers who for years have disposed OF
surplus stocks in this country SO as 70
keep their faetor ra gg e gan ne by help
ing foreign trusts in order 10 nulI ~ ~
nestle trusts is not apparent" Vol. 49,
page 03O-l)
Control of Trusts.
The purpose Of and inducenlent lot,
tho organization of many Of their trusts
Is two-fold Their promoters seek TO en-
rich themselves not only by controlIlns
the market but also, ana ahat IS G 1area
quantities of unduly inflated stock. Gould
We get at the exact figures 1t would no
doubt be found that the g nEied steel GREATER
tribute on the public by the large NoluInee
of inflated stock it put upon the niarket
its f;'i products. The stock victims have in
many instances suffered more lhah '11o
consumers.
Owing to our dual system Of govern govern
ment-state and federal-and the result
ing limitations of the federal constltu,,
ton it is no easy matter to regulate and
control these trusts and TO keep cHI ii
within proper bounds. The powers on the
federal government are confined to the
control of interstate commerce ana 40
not extend to purely state commerce or
to manufacturing VI bSIic'i
Republican party is the only party that
has enacted any material federal legis-
lative restraints, and sought to enforce
them through judicial proceedings.
Trust Legislation.
The following is brief summary of all
federal antitrust legislation:
Q The interstate commerce law OF
1884, enacted by a Democratic house and
q A clause in the Wilson tariff law Of
1894 prohibiting combination among i'm
porters. And this was the only attempt
at antitrust legislation made by the
Democratic party when they were IN
C) The so-called Sherman antitrust
law of 1890. passed during Harrlsons al,
minstration by a Republican house and
Republican senate, and which II. clear
terms prohibits monopolies and comblna'
tons in restraint of interstate commerce commerce:
(4) The act of Feb. H. 1903, expecting
trials Of suits to enforce the sherman
Is The act of Feb. il, 1904, establish
ing the department Of commerce ana Ia
Dor with a bureau Of corporations nav
+ ing power to gather, secure and publlsh
thorough information in. regard to the
organization and operation OF all cor
poratons engaged in interstate COM
Co The act of Feb. 10. 1904, amending
the interstate commerce law by charging
the powers Of the commission and the
courts and prohibiting rebates and draw
backs of every kind. ~
N'''
passed appropriating 100000 to enforce
the provisions of the ANTITRUST law and
yesting the attorney general with power
to employ special counsel and agents to
conduct suits and prosecutions under tho
law; and
(S) On March 3. 1904 an act was
passed providing for the appointment or
an assistant attorney general to assist
in the enforcement of the antitrust law.
Blocked by Democrats.
Not only has the Republican party
given the country all this antitrust lcSls-
lation but in 1900 it aimed in the house
tic. secure the adoption Of a constitutional
amendment giving congress amplcr pow
or to regulate and control trusts; On the
massage of this amendment l4S RepuD.
1cans voted for it, against 1t, ana l2O
Democrats voted against it and only .
for it, 1t failed to pass for the lack or
a tWo-third vote in its favor. In dis
cussing this amendment Mr.. Richardson.
the Democratic leader of the house. read
from the Washington Post, Democratic
paper. the following: ,,..,
"By supporting this constitutional
amendment Democrats would have de-
lberately connived at the permanent re-
tirement of the trust issue. withdrawn it
from the campaign, and thereby robbed
their party Of one of its most powerful
anoinoS of war;