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10 Conservative *
THE TRUST GOBLIN.
Mr. James B. Dill , of New York on
the Jfth of November , 1901 , addressed
the Merchants Club of Chicago , oil the
subject of trusts. Ho said , "A trust is n
dominant combination of money , prop
erty , business , or commercial power or
energy" and that
"The form of the union is unimport
ant. It may be an association , incor
porated or otherwise ; it may be a single
individual or a partnership. The es
sential element of the combination is
the purpose to dominate , and this dom
ination is the tendency which has creat
ed the most apprehension.
New Reading of Charters.
"If the charter of every prominent com-
biuation'of capital or dominant company
expressed the real intent of the organ
ization , instead of reading ' to manufac
ture , transport , and market' the partic
ular product in question , it would
state as the purpose of the company ' to
dominate in the manufacturing , to dom
inate in the transportation , ' and what
is quite as important , 'to dominate in
the market' of the product.
"The and intent to
V > * same .tendency
dominate is signified by the names of
the organizations , 'United States , '
'Colonial , ' 'Federal , ' and finally 'Na
tional' and even 'International. ' All of
this , both of structure and of name , in
dicates a purpose on the part of the organization -
\ ganization to dominate in the markets
of the world.
"It is not the combination in itself
that is vicious , but it is the methods
employed by some corporations in the
attempt to dominate which create the
. tendencies which are dangerous. "
Part of Nation's Growth.
Analyzing the situation today , he said :
"A man but wastes time to argue as a
theory that the movement for the consolidation -
solidation of business , of money , of
force , and of energy of any kind is any
thing but an accomplished fact.
"Recognizing that the combination
, and the consolidation of capital is a
force , we spend no time in asking why
it is here further than to say that it is
a part of the growth and expansion of
the American nation. It is essentially
a part of the aggressive American policy
of commercial supremacy , and as this
country expands it requires its financial
and commercial foundation to be
strengthened in order to compote with
other nations.
"The tendency towards centraliza
tion is seen in financial life. The great
banks are becoming greater , and are es
tablishing branches in all directions
through a stock control of smaller
banks or otherwise.
"One might be charged with lack of
conservatism should he suggest the pos
sibility of the establishment of a great ,
perhaps governmental bank , which
shall act as governor and regulator'of
the great financial machinery of this
country. Is the anticipating payment
of bonds or otherwise by the Treasurer
of the United States more than a mere
temporary expedient on the part of the
government to steady the finances of
this country to prevent panics ?
"Carrying this proposition to its logi
cal extent , and having in mind the
history of the great Bank of England ,
who is prepared to deny if and when
this couutiy becomes the great finance
and credit power of the world the trend
of affairs , if not the result , will be
toward the establishment of one great
controlling financial institution , cer
tainly under the United States law , and
perhaps controlled by the United States
government ?
Control Trusts for Good.
"The history of the trust movement
is not unlike that of the development of
electricity. Half a century ago every
habitation bristled with lightning rods
in an endeavor to avert and turn away
electricity , a force known best from its
dangerous tendencies. But today the
modern house is not equipped with in
struments to divert the electricity , but
is wired to receive and utilize the elec
tric current. The difference is not only
that the force is better understood but
it is under control.
"The generation of yesterday paid
money to the lightning rod man to keep
electricity out of the house. They
feared the flash and the crash. But to
day we pay the electric company to
create and store electricity and deliver
it through wires into the house for the
purpose of light , heat , power , and com
munication.
"While we convey electricity into our
homes , offices , and manufactories , yet
that electricity is never so conveyed
until the conductor is insulated , so that
the whole force is utilized , the danger is
minimized.
"The great question today is not how
combinations may be stoppedbut rather
how they may be utilized and controlled
for the best good of the country. "
Two Classes of Dangers.
The dangers of the trust movement
Mr. Dill divided into two classes : First ,
dangers to the combinations , and second
end , dangers from the combinations to
the public subjective and objective
dangers. Speaking of the dangers to
the corporations he said :
"The tendency of the great corpora
tions is to become in a measure callous
to public opinion , an error it may be on
the part of the corporation , but unfortu
nate so far as the public at large is
concerned.
"This indifference to public opinion
and legislation is to a certain extent due
to the fact that from the corporate
'standpoint many of the criticisms passed
upon corporations and much of the anti-
corporation legislation is based upon a
lack of understanding of the situation.
"Many of the attacks upon combina
tions have been aimed at the suppres
sion of the movement rather than to the
elucidation of the subject , and the util
ization of the force. Such attacks ,
legislative or otherwise , while danger
ous to the combinations ) react strongly
against the public , This element of
danger to the combination is itself in
turn productive of a danger from the
combination to the public itself.
"The of industrial
tendency corpora
tions to enter the field of legislation and
thence into politics is perhaps the most
imminent danger from the combination
to the public.
"Unwise legislation against industrial
combinations invites and sometimes
forces the industrial movement to enter
into the field of legislative competition.
The combination is thus brought into
the field of legislative competition , and
when once in that field it .sometimes
learns that it can not only defeat anti-
corporate measures in the usual way but
that it can procure pro-corporate legis
lation.
"Ill-advised popular clamor resulting
likewise in unwise and ill-advised legis
lation always tends to force combina
tions of capital , which should .otherwise
devote their attention to commercial
matters into the great field of legislative
competition and ultimately and as a
logical result , into politics.
"Any attempt on the part of these in
dustrial organizations to enter , volun
tarily or otherwise , into the field of leg
islation is a tendency which is to be re
garded with grave apprehension. "
As to speculation by officers of cor
porations in their own securities , Mr.
Dill said :
"Conceding , if you please , that a
daily and public market for industrial
securities is a necessity for their suc
cess as a popular investment , yet , if it
be true that in the private offices of any
official of the great combinations one
finds not only a business desk but a
stock exchange ticker , separated only by
a wheel chair , the business desk and the
stock exchange ticker being equally ac
cessible , and perhaps equally used by
the official , one must view this situation
with apprehension.
"That combination which is governed ,
which is controlled , through its man
agement for the purpose of advancing or
depressing the price of its securities on
the market is run on a principle other
than that of a commercial enterprise and
must ultimately land where it belongs
in the gutter.
"Some combinations have been prop
erly called blind pools , into which the
public go , if not under misrepresenta
tions at least with understandings , ex
press or implied which are as a rule not
justified by the results.
"The formation of these blind.pools