Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-03-02
Trouble for Trusts.

In his weekly review of the financial
situation, Henry Clews. the veteran
New York banker and authority, today
cites an important condition of affairs.
Natural forces have at last asserted
themselves, and the greatest corpora
ton the world ever saw, the
steel trust, has been obliged to surren-
der to the memorable law of supply
and demand. This powerful and skill
fully managed corporation was organ
lied largely for the express purpose
of escaping this law. Competition was
to be abolished or reduced to a min
imum as a regulating force, and in its
place artificial regulation was to be
substituted. The market was to be
under the control of few able men
Ito whose judgment and absolute power
the whole industry must submit; and
the free play of differences 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 be-
tween buyers and competition between
sellers was TO be wiped out, and the
wants of trade were to be estimated
and satisfied according to the opinion
or caprice of a few men. Such in
brief were the ultimate aims of the
policy of some of the great monopolis-
tic combinations which have been Gre
ated within the last few years. Moth
ing more revolutionary and nothing
more approaching to socialism has ever
been put into practical effect than
these huge combinations, which placed
whole industries under the arbitrary
control of a few strong but infallible
individuals. The failure of artificial
regulation in case of the steel trust is,
therefore, of the highest Importance.
1t shows that the steel trust has failed
in one of its prime and most objec-
tionable purposes, that of regulating
prices, and this failure is a source of
real qualification to all who wish to
see the freedom of American institu-
lions preserved. There is no objection
whatever to great corporations; they
and progress; but they must be reso-
lutely checked in their monopolistic
tendencies, and must also be taught
to admit, as did Mr.. Gary very frank
ly not long ago, that public welfare
| shall be placed before corporate inter
ests and that all corporations must i'm,
lplicitly obey the law
The effect of the cut in steel prices
was at first very unsettling, for in sew.
i eral 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
productions were good policy, but they
lmeant long deferred recognition oil
IchanSed conditions and more natural
adjustment to the new order of things
1t was recognized that lower prices
would place industry upon a safer
lbasis, and that there would eventually
follow decided Improvement. Per
haps it would be folly to say that bot
tom has been reached, for confidenc,
has been seriously disturbed, and buy
Iers will of course push their newl,
lgained advantage to the limit. Tariff
laSitation will also cause much bust
ness to be deferred. and this may TEN
porarily act in buyers favor. When
Ihowever, that disturbing element il
lremoved there will be an accumula
ition of orders that will compensate
for present depression. In the lon
run ii is safe to say that a return t.
lower price levels will be beneficial
and genuine stimulus to renewe,
lactivity later on.