Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-16

nor superior influence as a large Gus
toner. can the great syndicate secure
any nae, asorantase whatever , over the small
steel syndicates succeed In convincing the
national railway administration that q
readjustment OF freight rates is neces-
two ali-powerfui combinations. the Tov-
eminent will not fail to favor them. But
at the same time the reduced rates are
made available for the benefit Of the
smallest producer Of coal. or the most
-.
Both syndicates and cartells are volun-
tary organizations OF constituent COM
pan lie 8.
Voluntary Organisations but in
Of Constituent Companies. se,v m !.
they are not corporations. That is to say.
the syndicate or cartel is not capitalized.
but is controlled by a committee repre-
senting each Constituent corporation.
each OF which remains under the control
OF its own separate set Of stockholders.
The German law does everything possible
to encourage the formation OF q syndi-
cate to fix prices and to eliminate waste
full methods OF unrestricted competition.
but It will not permit such a syndicate to
capitalize Its cooperation nor to organ
lie a holding company.
II the German laws were In force In
the United States. the steel trust would
control an even greater percentage Of
the iron and steel industry than II now
does, but there would be no ''Steel Com
mon" quoted on the stock exchange, and
Mr.. Carnegie would have no steel cor
poration bonds. The steel trust would be
an amalgamation Of all the once indie
pendent steel concerns. but IL would be
owned separately by the original stock
holders. In other words the German sys-
tenn encourages the cooperative indus
trial features OF the American trust sys-
tenn. but prohibits its financial features.
There Is considerable political opposi-
ton In Germany to the control OF the
industries by the syndtcates and cartells,
but II Is not based upon any objection
to their cooperative organization. nor
does 1t proceed from any devotion to the
theory OF individualistic competition. 1t
Is rather q movement In opposition TO
the protective tariff. since II is voiced IN
q demand that the tariff be so changed
as to prohibit the possibility OF the syn
dicates and cartells charging higher
prices at home than they do abroad.
On the whole there Is little or no OBJ
lection to the German syndicate system
on account
Little or No Objection Of its trust
to the German System. The manu- ann.
facturers. both large and small. approve
because they profit by the elimination OF
throat-cutting competition and wasteful
sales methods: the industrial workers APP
prove because syndication enables their
employers to pay higher wages: the gen.
eral public approves because II believes
that the present prosperity Of the country
Is the result OF the prevailing system. So
ciaily there is little or no enmity to the
syndicates and cartells. The aristocratic
and plutocratic elements approve because
Il Is to their financial interest, and the
socialists approve bcause they believe
that every Industrial combination brings
them nearer to the day when everything
is combined In the state.
AS the government itself Is some
times a partner in the syndicates and
cartells-the Prussian government
owns 81 per cent Of the stock Of the
powerful potash syndicate-there Is
concrete justification for the socialist
position. The German banking system
has felt the influence Of the tendency
toward combinations. and syndicates
Of banks are partners In Industrial
syndicatos. The banks are much more
closely associated with the industries
than they are n America % closely. IN