South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-01-07
THE NEW TRUST IDEA.

In the old days when attorney generals federal
prosecutors populists and demagogues INDUCED in
the occupation OF trust-busting and trust batting.
the people who hated trusts largely the
consumers who believed that they were being robbed
by organized capital.
Now the trust-and the spokesmen
for finance are shuddering in fear that the
article will bring socialism and government owner
ship Of industry.
In the halcyon days trust formation the process
was always the same and had for its, purpose the
crushing OF competition.
The leaders in any line OF business, such as oil
steel bought in their larger competitors forced
the smaller ones out business then proceeded
TO collect dividends a lot OF watered stock which
was always issued 70 the men who formed the
combine.
The dividends possible through the savings
in management and very often, through a control
OF the rrice Of both materials and OF the
pletsd article. They paid what they pleased and
charged what they wished. which created
pleasant condition for the owners OF the trust and
so unhappy a for the public that those who
promised 20 unscraunbls trusts generally ele-
waited 10 important political jobs
The new idea is different The new trust does
not combine similar plants but It does combine
plants and industries that have anything to do with
the manufactured article from the material to
the completed product.
effected by the Anaconda probably the largest cop
per mining and zinc producing company in the
world.
This company produces each year about 100000,
600 pounds OF copper and a third that OF
zinc controls. largely. the prices Of these pro-
ducts.
Its biggest customer was the American Brass
company. which needs for its completed articles,
$50. 900 pounds OF copper and the hundred mil
lion pounds OF zinc which the Anaconda produces.
By a manipulation OF finance. the Anaconda buys
the brass company and now takes for itself all the
profits made in turning the raw metals into brass,
and puts itself into a very happy position as
getting the full value OF its raw materials.
Henry Ford worked much the plan when
he bought coal mines in Ohio to his Michigan
factories then the railroad carried
the coal TO the factory.
The trust is based upon the idea Of owning
everything necessary TO the production Of the
article OF commerce.
II is aimed at cutting the middle profits. the
jobbers and commissions on purchases the waste
that Is inherent any business that pays for
thing that does not show up in the final article for
sale.
Dangerous? Ask the financial journals in Wall St,
and they viii tell you that It is the most terrible
crime against business stability perpetrated since
Bryan suggested silver dollars.
They point that this is making it very easy for
the take industries, and, besides,
Il shifting business practices to the point where
operative societies OF consumers may take notice
and wonder why the hnal reduction OF waste be
not made and the who the goods all
the processes of manufacture and distribution.
These financial journals pointing out that the
farmers OF the country getting wise and
working through their organizations that
sell products direct.
They point the danger or organizing indus
tries so completely against motion that it will
easy for the cooperators to understand the
methods.
In the meantime. let il be hoped that the
who have worked a trust that eliminates
effort will not be too greedy with such
ngs they may make but pass part of their
added profits TO the consuming public.
There will be no clamor against these trusts
il they deal fairly with the people. There will be
real howl II they try to do what the old compe-
misunderstanding combines did 20 years ago.
In the meantime, the people afford at least
one smile when trust-formers accusing their
pals OF hurrylng along socialism. That is funny.