The Washington times., 1906-11-03
CdnDerTQe Benefit
FzOmS Some Trusts
When Properly Managed, Says Prof. ]. H. Gofe, of
George Washington University, the Con-
sumner Is the One Who Profits
By PROF. ]. H. GORE, Ph. D.,
Professor of Mathematics George Washington University.

During the latter part of the summer
and in the early days of October, many
manufacturing associations and trade
organizations held their annual meet
inEs. Each one discussed the success
that had attended their efforts to in
crease their market and debated the
methods to be followed for insuring
a continuance OF their profits in the yeal
70 come.
1t was found that in every line OF
manufacture the prosperous condition
of the country at large had made pos
sible such large purchases that practi-
caIIy al surplus stock has been eX-
hausted. Much OF this had been made
at a cost that permitted a good proht
when sold at current prices. During
the past year prices or material OF all
kinds have advanced and wages are
now higher than they We're twelve
months ago. Therefore. IN order TO
hold the market and make even fair
profit. the prices must be raised or more
economic processes OF production ana
distribution be devised.
The makers of vehicles and minor Inn
plements Of the farm regret this condi-
class that is the least acquainted with
the fluctuations In the cost OF material
and skilled labor; they are also the ones
who are the quickest TO look upon
higher prices as greater profits 10 the
maker. II this condition were tempo
rary il might be tided over by market
ing at a minimum of profit or debasing
their products in quality.
a.. L. fan
price OF material and labor shows that
il now costs approximately 10 per cent
more TO make vehicles and all sorts OF
farm machinery than II did four years
ago. and with the rapid exhaustion OF
the supply Of the hard woods required
In these articles and the growing de-
mand for steel In construction, Il Is Ger
tain that each year viii see an addition
TO the cost OF production
Where Trust Methods Save.
1t seems that the only way 10 check
! the advance IN the price Of farming I'm
I uIemeuts-advance that mean an in
/ crease in the cost Of all forms OF food
supplies-is 20 lessen the cost OF manu-
facture and distribution by just aud ju-
dIcious combination. That this can be
dole may be seen in the experience of
the International Harvester Company.
The constituent elements OF this COR
/ poration, II they had maintained the
costly method of Individual manufac-
| ture. exploitation, and distribution
would have found themselves obliged 10
place higher prices on their machines.
Ry saving a large part OF the expense OF
! competitive advertising and mulupllca-
| ton OF agencies, the organization has
Offset the addition TO the cost or manu-
facture by economies and the reaper II
/ the only piece OF machinery that the
| farmer can buy as cheap as he could
I five years ago
| Incidentally. il might be mentioned
/ that a combination Ike this company
/ gives "A further benefit to the consumer
! IL is able TO place ON all or ITS out
nut the good features that had been Sc
/ rured by patents 10 any one Of them,
and at the same time retain the dls-
] tinctive elements that had made each
/ This organization. created by out and
ont purchase of individual companies
has been called q trust and IN one state
laws conceived I'm hysteria have sought
/ 10 drive IL beyond its borders, thus I'M
: posing upon the farmers of the State
/ the necessity of paying higher prices TOT
/ an Indispensable article.
Eliminating Avoidable Expense.