The mirror. (Stillwater, Minn.) 1894-1925, 1908-12-24

prices for certain length of time with
safety, as the independent company
cannot supply the demand; and if they
raise their prices there are no reasons
for the retail merchants to buy their
goods, as they are sure of prompt de-
livery and full supply from the trust,
while the independent plant Is uncer-
tain and without lower prices are of
small consideration
In most cases the trust owns the pat
ents of the machinery and devices used
for the production of the goods and
the independent firm must pay royalty
on these if used. Then the trust may
have the choice in buying raw material,
as such companies buy in greater guam
titles and are more secure for pay and
are generally favored. In the expense
caused by labor the trust saves great
deal, as by combining the several lars e
plants, they dispense with number of
high salaried officials and great many
statesmen, and are operated from the
head plant by almost the same number
of officers it would require for each in
dividual plant, while the different
plants are managed by superinten-
dent and small force of clerks.
In advertising it requires very little
more for the combination of the trust
than it would for one individual plant,
and a large amount is saved in this
way. Labor unions have little effect
on these trusts who operate great
many large plants; for a disagreement
or strike only causes transfer of or
ders from the plant that has the trouble
on hand and they are filled by the
other plants, even II two OF three plants
have to be closed it causes no great
trouble, but an independent firm who
may not have more than tour or five
plants would suffer greatly in such a
case.
A trust is supposed to lie combina
ton of business firms for the purpose
of saving waste labor and other ex-
penses, and to promote business by
producing with better methods and Oh
a large scale without obstructing COM
petition of either trade or traffic. The
public at large are to great extent to
blame for the power that helps to give
trusts monopoly, for it is to great
extent slave to habit aud even preju-
dice to anything new or out of the old
rut, so when trust obtains possession
of plants producing the popular and
we'll established brands or those bear
ing such trade marks, then the busi-
ness is almost monopOliZed at once.
, Trusts, especially the largest, do not
: cOnfine their operations to main plants
of production alone but also gain pos
t session of the branches or even other
: industries that in some way are of ben
etit to their welfare. If complete pos
, session is not to be obtained, stock
3 enough to acquire favor to their indus
try is purchased.
Author jerks mentions one case ir
: this state. In 1900, The Federal Stee
/ Company was a combination of severa
companies. 1t bought all the stOcl
= owned by Tie Minnesota Iron Compa
:, ny, which consisted of Iron ore prop
J. erty; The Duluth and Iron Range Rail
8 road Company, which connects it
Q mines with Lake Superior at tw'
J. points, ore docks and twenty-five stee
/. vessels for carrying it's products.
II also bought all the stock of the Illinoi
It Steel Company, of several plants whicl
It produce pig iron, steel rails, steel bill
If lets, steel plates, etc. The Fedora
q Steel Company also owned the Chicag
J. Lake Shore and Eastern Railroad, be
y sides large tracts OF coal property O.
= which it manufactured coke for thos
If plants. This company with such ad
ii vantages for shipment and material a
Or first cost could put its products on tn
es market so much cheaper than any on
10 of the individual plants that ther
D. would be very little chance for comp'
1t tition, and if the market price were th
n same for the products of both, th
trusts would receive far the large'
to profit.
n But from these few facts and tt
d. 81 atement that some four hundre
sr, men own the trusts and monopolies I
se this country it is not hard to belle,