Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-08-11
ENCOURAGEMENT
To FORMATION Of
HUGE TRUSTS, IS
BRITISH POLICY
Combinations Are Being Form
ed Rapidly With Govern
ment'S Approval in Order to
Promote More Business,
GREATEST PUBLICITY TO
REGULATE PROFITS
LaborerS Enter Into Combina-
tionS With Capital in Some
InStanCeSi Revolution ihI
Business Methods Sure,
tssrclAL eoanEsponosnes TO nosnNa louenAL1

ESPECIAL CORRESPONDENCE TO "o7"Ne JOURNAL
London, Aug. 10.-There has been
an immense development of ccmbina-
ton i'll British trade and industry
during the war. The full extent Of
the process was not generally realized
until the committee on trusts, appoint
ed by the ministry of reconstruction,
issued its report
The committee states that there
is lin every important branch of in
dustry in the United Kingdom an in
Creasing tendency to the formation of
trade associations and combinations,
having for their purpose the restric-
ton of competition and the control
of prices" The form of combination
varies from loose understanding on
prices between Independent firms to
complete consolidation. Such asso-
Citations and combines may. in the
opinion of the committee, within no
distant period exercise a paramount
control over all important branches
of British trade"
A list Is given of thirty-fiVe asso-
citations, each comprising several
firms, in the iron and steel industry,
concerned with the fixing of prices.
entirely in the hands of two great
consultations. In soap, tobacco,
wall papers, salt, cement and the
textile trade there are powerful com
hinations and consultations in a po-
sition to control output and prices.
Food and shipping are not mentioned,
but with the relaxation of government
control there can be no question that
the same tendency will appear in a
very marked degree in those cases
also
The main reason for the striking
growth in combination during the past
few years is considered to be the fact
that it was often necessary under war
conditions for government depart
ments to consult with whole indus
trv and sometimes to ratIon material
through al organization representa-
tive of the industry. Unassociated
firms found themselves left outside.
The ministry of munitions had deal
ings with ninety-three different asso-
Citations. On the whole, its expert
ence was satisfactory. But one of
the departments officials in giving
evidence pointed out that the knowl-
edge that resort could be had to the
defence of the realm regulations prob
erce in keeping prices down and thai
consumers confronted with these
combinations in peace time would
occupy a very different position.
Encouraged BY Government.
There is no doubt (although it is
not stated in this reporD that great
administrative encouragement has
been given to the idea of combination,
The board of trade committee, con-
sisting of large capitalists, appointed
to advise the government on CONNER
cial and industrial policy after the
war strongly recommended the for
nation of combinations of manufac-
turers for the purpose of securing
supplies of raw materials. production
and marketing. They held that there
should be no government interference
with such combinations and that the
law regarded restraint of trade
should be modlfled. Ihey conSldefe1
that the antagonistic attitude of the
public (Which they admltted) to-
wards the principle of com blnatlon
should be modified.
The committee en- trusts does not
agree with that view. 1t processes
itself unable to share the optimism
tL,nca vyhp ho1ipya that tho Onpr1 =