Monopolies and the People | Page 5

he calls to mind the fact that
other combinations to suppress competition exist in various other lines
of industry. Surely when the governing motives are so similar, the
proper remedies, if remedies are needed, cannot be greatly unlike. And
though, taking the country as a whole, trusts have occupied more
attention lately than any other form of monopoly, the problem of
railroad monopoly is still all-absorbing in the West; in every city there
is clamor against the burdens of taxation levied by gas, electric-light,
street-railway, and kindred monopolies; while strikes in every industry
testify to the strength of those who would shut out competition from the
labor market. These and similar social and industrial problems are quite
as important as the problem of trusts, and their solution is becoming
every day more urgent and necessary. If we neglect them too long, or
carelessly adopt some unsuitable or unjust remedy, who knows the
price we may pay for our folly in blood and treasure?
The problem before us, then, as we see it from our present standpoint,
is the problem of monopoly. What is it? Whence comes it? What are its
effects? And, most important of all, what ought we to do about it?
Surely questions whose correct answer is of such importance to the
welfare of each person and to the very existence of society demand the
careful consideration of every thinking man.
Let us then take up this problem and give it the fairest and most candid
investigation possible. In order to do this, let us remember that the truth
is the object of our search, and that it will be necessary, if the
conclusions from our investigation are to be of value, that we divest
ourselves, so far as possible, of all preconceived opinions founded,
perhaps unconsciously, on the statements or evidence of incompetent
authorities, and also of all prejudices. Let us, in searching for facts and
principles, examine with impartiality the evidence and arguments

which each side presents, and judge with candor between them.
The author wishes to make an earnest personal request to the reader
who is minded to follow the discussion through the following pages,
that he will in good faith attempt to do this thing: that he will lay aside
for the present his opinions already formed, as the author himself has
conscientiously aimed to do while pursuing this investigation, and give
a fair hearing to both sides of the question. A complicated machine can
only be understood when it is viewed from different standpoints. So,
here, in order to find the truth, we must examine trusts from the
standpoint of the trust maker as well as from that of the consumer; and
trade unions, from the standpoint of their members as well as from the
ground of employers and of the public at large. We shall indeed meet
much error by this method of study, but is it not proverbial that there
are two sides to every question? It will be our task to study these
opposing views and sift from them the truths for which we seek.
In taking up now the problem before us, let us adopt the true scientific
method for its solution. We must first find out as fully as possible the
actual facts with regard to monopolies of every sort and the
competition which monopoly replaces. Next, by discussing and
comparing the evidence obtained, we may be able to discover the
natural laws by which competition and monopoly are controlled; and
finally, with our knowledge of these, we will try to discover both the
source of the evils which vex us and the proper methods for
ameliorating, curing, or preventing them, whichever may be found
possible.
Such is the outline of the investigation before us, which it may as well
be said here could easily be extended and amplified to fill many
volumes. The author has preferred to prepare the present volume
without such amplification, believing that the busy men of affairs, to
whom a practical knowledge of the subjects herein treated is most
essential, have, as a rule, no leisure for the extended study which the
volumes into which the present one might easily be expanded would
require. He trusts, however, that brevity will not be found wholly
incompatible with thoroughness; and that the fact that much which

might have properly been included in the book is omitted, will not be
taken as a necessary indication that the conclusions arrived at are
without value.

II.
TRUSTS AND MONOPOLIES IN MANUFACTURING
INDUSTRIES.
In common use the word "trust" is at present rather loosely used to
denote any combination formed for the purpose of restricting or killing
competition. Properly speaking, however, a trust is a combination to
restrain competition among producers, formed by placing the various
producing properties (mills, factories,