Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
Marked Trend Toward
Business Combinations
BY HARDEN COLFAX.

Advantages to the public from eff
cheney and economy of operations on
the part OF industrial and utility con-
Germs are being weighed against those
OF full and free competition in scores of
lines today. 1t Is impossible to survey
tne business situation without noting
the trend toward combination and con-
soidation. It Is equally impossible to
overlook the fact that these proposed
consultations and mergers in all fields
are being bitterly opposed in some quar-
tiers.
There is little question that these
differences will be threShed out on the
floors OF the House and Senate in the
not distant future. They are even now
engaging the attention of the Federal
Trade Commission, the Department of
Justice, the Interstate Commerce Com
mission and other Federal regulatory
bodies, State utility and railroad COM
missions and Legislatures are active
along similar lines.
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The opposing viewpoints started at
the very beginning Of business procedure
that Is, with the financing of the
business in question. Bank consolida-
tons, already in effect and in prospect,
have been more numerous and have In
volved a greater total of assets than at
any time In the history of this country.
The attitude of the Federal Reserve
Board and the Treasury Department
with regard to these mergers has been
made plain in the statements by the
Controller of the Currency and the head
OF the Federal Reserve Board approving
the merger Of the Chase National Bank,
the Equitable Trust Co. and the Inter-
state Trust Co. of New York.
On the other hand, there is strong
opposition to both group and chain
banking in Congress and throughout
the States. This is especially noticeable
In the Middle West.
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The Interstate Commerce Commission
now Is struggling with the initial steps
to carry out its plans for railroad con.
solidation. Its progress has met with
obstacles. Opposition in Congress has
been voiced by the Couzens resolution,
which would prevent approval Of any
railroad consolidation pending further
legislation on the subject. Senator
CouzenS Is known to be strongly In favor
Of legislation which would define the
limits of operations of railroad holding
companies, and he believes this would
act as a preventive of improper con-
solicitations. Others are strongly pushing
the commissions plan. None of the
railroads is entirely satisfied with it, but
less opposition has been expressed by
the railroads than was expected.
The conflict over consultations is
Illustrated in the industrial field by the
struggle In connection with the proposal
to merge Bethlehem Steel and Youngs-
town Sheet & Tube. Similarly, there Is
dtSSension with regard to consolidation
OF Standard Oil and Vacuum Oil. This
Is now being tested out in the courts
to determine whether such q merger
violates the antitrust laws.
4 4 y
There Is no lack Of evidence that the
trend toward merging of public utility
companies will continue. Merger sup
porters point out that they have en-.
abled the utilities to cut costs of oper-
alton and supply power at lower rate
to consumers and to give a higher
standard Of service than ever before.
The rapid development of improved
machinery in the public utility field, es-
pecially in the central power stations,
has made it essential that new ma
chinery-and expensive machinery-be
installed in many hundreds Of plants.
Consultations, according to their advo-
Gates, have enabled the companies to
do this extensively.
Chain stores are growing, although
not so fast as In some previous years
They are entering new fields all the
time. This is true also of the mail-order
houses, which now are breaking into
the retail store field in scores of market
ing centers. Opposition to this expan-
sion has been widespread In various
sections. The independent merchants
the turning Of trade to the chain
stores. The latter declare the system
makes it possible for them to sell
cheaper to the consumer and to give
better service.
(Copyright, 1901