The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-06


Pressing -IIttIeneSd and GOmpers
BATE. Me-. Sept. ~S.-Secretary Of War
william II. Taft, taking part in the cam.
paiRn for the reelection Of Representative
Charles +. Littleheld, made the following
spee-. go to-day:
MY FELLOW CITIZENS: / propose this
evening 10 invite your attention chiefly
20 a subject that has a very important
bearing upon the issue presented TO you
In this campaign. whetheF you shah return
Representatives. refer to the evils arts
inn from the misuse and abuse OF the power
fI in~strumentalities which the free oppor-
nlnity to organize and combine capital
has placed in the hands OF the comPara-
lively few. So widespread have these
evils become that the public has demanded
remedies by legislation to restrain them
and 10 regulate and supervise more care
fully in future the exercise OF the mighty
mems Of good and evil which organized
capital has proved to be.
GREAT vALuE OF WEALTH USED AS CAPITAL
In the discussion Of this subject IL In well
for us to begin with the premise that wealth
used as capital for the PRODUCTION OF COM
mo1ities and convenienoes essential to the
lie and comfort Of the people is one Of the
chief means by which a people can be up
lifted in their pursuit OF happiness. 1t
WOll1 Nv MS III lhSJCtllIlk ~ Ia OIdJTIOS44
Of a certain class Of orators TO gather the
impression that all wealth and all capital
snd all corporations are to be condemned;
whereas, when we look at the matter
straight in the face. we know that the pros
peritv Of this country and the comfort
that has been produced are LARGELY TO be
attributed to the assembling Of the savings
Of the many into corporate capital, so that
il NAV he used ia establish and carry out
the large enterprises for production, manu-
facture and transportation, without which
the prosperity which the country is now
ENJOYING would not have been attained,
We must keep constantly in mind that any
step taken having effect generally to dis
courage corporate enterprises and the
savings Of earnings Tor the purpose Of
establishing and operating them would
fall with greater weight Of suffering upon
the poor, the wage earner, the small dealer
and the salaried man., than upon the owner
Of capital and the manager OF corporate
enterprises.
INCREASE IN EARNINGS OF LABOR SINCE 1900.
The enormous increase in the business OF
this country and the wealth earning ca
pacity is shown by the statistics recently
issued by the Census Bureau Of the capital
invested, the products made and the wages
paid in the manufacturing Industries OF the
United States in the FIVE years from 1900
10 1905. The capital invested increased
from nine billions Of dollars, more thar
forty per cehC'' 70 nearly thirteen Dill
ions Of dollars. The value OF the prod
ucts increased from eleven billion FIVE hum
dred million to fifteen billion dollars, or a
gain OF 30 per cent. With respect to the
wage Garner, while there were is per cent
more men employed in 1905 than in 1900 the
greater in 1905. This shows that while the
capitalists in h manufacturing industries
we're receiving a less ~proportionate profit,
the wage earners were receiving a greater
proportion OF wages. Never before in the
history OF the world has there been such
prosperity shown as m this country; and
certainly he would be an arch-conspirator
against the happiness Of all the people who
would deliberately or negligently do any
thing to destroy it.
The men, therefore, who are to be trusted
and should be charged with the duty OF curb
ing corporate and ~capitalistio abuses are
those who fully appreciate and value fairly
and wisely the uses OF aggregate wealth as
capital and recognize it as Indispensable
10 the prosperity Of the community and the
pursuit OF happiness by the people and yet
who at the same time fully recognize the
evils Of the abuses which have arisen by its
misuse and the necessity for their cor
rection.
ABUSES OF oBoANIZBD CAPITAL.
For the sake Of cleaTness in examining
into the character Of the evils and abuses
which need restraint n punishment,
We may divide corporations guilty Of them
into industrial corporations, organized
for the purpose of manufacture and sale
Of merchandise, and into railroad and
other corporations, organized for the trans
portation of passengers and goods. Let
ns deal first with industrial corporations.
The valuable consideration moving to the
public for comforting the privilege and
franchise necessary in the incorporation
OF capital in such corporations is the public
benefit to be derived in the lowering of
prices. The temptation to III managers,
however, when the enterprises become
very large, is to suppress competition and
maintain prices, and thus to deny to the
pubic its proper share in the benefit sought
10 be attained, and to appropriate to the
corporate owners all the profit derived
from improved facilities Of production.
One method OF suppressing competition
Is by agreements between all the large
concerns engaged in the same business
70 limit the output and maintain prices.
such agreements are usually secret, and
are difficult for public officials TO obtain
PROOF Of but when these agreements do
hecome public n are successfully prose-
cuted, this method is abandoned, and the
independent corporations that acted
together under secret agreements to main
taln prices are absorbed into one great
CORPORATION, so hat the large proportion
ot the producing capital lin a single industry
Is nlaced under one control. Then COM
EDITION with the trust thus formed Is ex-
cllded by ingenious contracts Of sale with
fnlddlemen, distributors and retail dealers,
VINO are coerced by the agents Of the trust
INTO a maintenance Of retail prices and a
withdrawal Of all patronage from smaller
Independent and competing producers
through the knowledge and fear that the
trust in times Of active demand for it's
products will either refuse TO sell or will
sell only at discriminating prices to those
who do not comply with it's conditions
81 sale. The evil result Of such combina-
lions and the injury which has flowed
from them have given great Importance
70 the principle Of law that acts done with
me intent and result OF injuring another
nay become unlawful and actionable when
done bv many persons OF by the use OF
MANY different in~strImentalities combined
Tor the purpose. although the "a me acts
wlfh the same intent when done or at
temnted to be hone nv one person singly
would not he unlawful, because neither
OPP nessive nor dangerous in result. This
Is IN" basis for all antitrust legislation.
GOVERNMENTAL MOVEMENT AGAINST TRUSTS
The growth Of corporate enterprises to
such a siZe as TO absorb particular indus
trles attracted attention between 1890
and 1890, and a Democratic House Of Repre-
rentatives in the last half OF Mr., Cleveland's