The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1908-05-30
NO "G0OD TRUSTS"
SECRETARY TAFT'S ARGUMENT A
PALPABLE FALLACY.
"Cost Reduction" Through Combina-
lion, II True, Has Proved Of No
Benefit to the American Peo-
pIe-WhoIe Theory Wrong.

Secretary Taft seems to have got
Into trouble over his late remarks to
the railroad conductors at Chicago.
The Socialists quote what he said
with satisfaction as admitting 1.-The
fact of the class struggle" The secre-
tary declares he was misquoted, and
that what he did say was this:
THAT unless laborers united into
organizations, the laborer would stand
no chance in that inevitable contro-
versy that We always hope will be
peaceful, but that must exist-that
inevitable controversy as to how Ia
Dor and capital shall share the joint
product of both"
The effort of Secretary Taft to allay
the dislike of labor to him, on account
of his former injunctions when Judge,
In the interest of employers, and
against the strikers, will require more
than such a small tub that he has
thrown to the labor whale.
But whatever may come Of the con-
troversy between Mr.. Taft and or
ganized labor, there is another state
ment he is. reported to have made in
the same speech that no Democrat can
lndorse, because it does not agree
with notorious facts. Combinations
of capital" said Mr.. Taft" within the
bounds Of the law are necessary for
business eXpediency and for cost re-
duction." Mr.. Taft evidently believes
with President Roosevelt that there
are good trusts" which through mo-
nopOly can produce cost reduction"
1t would be interesting to know how
these eminent Republicans explain
the fact that although the steel trust
by combination virtually controls the
steel production of the country and
has undoubtedly reduced the cost of
production, yet persists in maintaining
the price of its products at the top
notch. Cost reduction" of trust prod
ucts is but of little service to the
American people if they do not par
ticipate in the reduction by bHyins
cheaper goods. AS the trusts by COM
bination may reduce the cost of their
products, why should not the people
who use them participate in the re-
d.Ced cost? From the restricted views
Of Secretary Taft and President ROOSe
welt, a trust that produces cheaper
than Independent manufacturers can,
is a good trust, but from a Democratic
standpoint the whole theory Of trust
combinations is based on monopoly.
on6 tho oriff --h;oh ,-~<oat- tho
trusts is the chief cause of their ex-
istence.
Cost reduction without reduction in
price to consumers is but an absurd
Republican ~fallacy.
There can be no trust or combina-
ton unless there IS some kind of mo-
nOpoly back otit. Therefore, there can
be no combinations that are good for
the people. Those trusts that are pro-
tected by the tariff would soon become
comparatively good if the tariff that
protects them was reduced to a reve
nue. basis so that the competition they
have smOthered at home by combina-
ton would be revived by competition
from abroad. If by combination I'M
free competition the trusts, be it
the steel trust or any other trust, can
then by cost reduction" sell their
products cheaply to the American peo-
pie, there would be some ground for
such a competing trust is a
good trust. But there never can be a
good trust as long as it is so pro-
tected by the Republican policy of
protection that it can charge
more for its products here than it sells
such products for in foreign coun-
tries.
If the trusts have any bargain
counter propositions to offer, they
should be first offered to the American
people.