The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1909-03-04
MIL RE aENEElclAL.

Commenting on the recent cut IN
prices by the steel trust, which Great
cd such furore in business circles
all over the country, Henry Clews in
his weekly New York letter takes a
very optimistic view of the matter
and says:
Natural forces have at last assert
ed themselves, and the greatest cor,
poration the world ever saw the
steel trust, has Deen Obliged 10 sur
render to the memorable law of sup
ply and demand This powerful and
skillfully managed corporation was
organized largely for the express pur-
pose of escaping this law. Compete
ton was to be abolihsed or reduced
to minimum as a regulating force,
and in its place artificial regulation
was to be substituted The mark
ct was to be under the control of a
few able men TO whose judgment and
absolute power the whole industry must
submit and the free play of differ.
ences of opinion between buyer and
seller, which has been the system OF
price control ever since civilization
began, was to be abolished at a stroke.
Competition between buyers and com
petition between sellers was to be
wiped out, and the wants of trade were
to be estimated and satisfied accord
ing to the opinion or caprice of a few
men. Such in brief were the ultimate
aims of the policy of some of the great
monopolistic combinations which have
been created within the last few years.
Nothing more revolutionary and moth,
ing more approaching 10 socialism
has ever been put into practical effect
than these hugh combinations, which
placed whole industries under the ar.
bitrary control of few strong but
not invaluable individuals. The failure
of artificial regulation in case of the
steel trust is, therefore, of the highest
Importance, 1t shows that the trust
system has failed in one of ITS prime
and most objectionable purposes, THAI
of regulating prices: and this failure
is source of real qualification to all
who wish to see the freedom of
American institutions preserved.
There is no objection whatever to
great corporations: they are in line
with industrial efficiency and progress;
but they mus be resolutely checked
in their moHopolistic tendencies and
must also be taught TO admit, as did
Mr.. Gary very frankly not long ago,
that public welfare shall be placed
before corporate interests and that
all corporations must implicitly obey
the law. af
"The effect of the cut in steel was
at first very unsettling, for in several
departments of industry the steel
trust policy of holding up prices in
spite of business depression had very
generally followed. A few days after
the cut it became recognized that
these reductions were good policy, that
they meant a long deferred recognition
of changed conditions and a more
natural adjustment to the new order
of things. 1t was recognized that
lower prices would place industry up
on a safer basis, and that there would
eventually follow a decided improve
ment. Perhaps it would be folly to
say that bottom has been reached, for
confidence has been !. seriously dis,
turbed, and buyers viii of course push
their newly gained advantages to the
limit. Tariff agitation will also cause
much business TO be deferred, and
this may temporarily act in buyers
favor. When, however, that disturb
ing element is removed there will be
an accumulation of orders that viii
compensate for present depression
In the long run it is safe to say that
return to lower price levels will be
beneficial. and a genuine Stimulus e
renewed business activity later on"