THE RELIGION OF TRUSTS.

Greymouth Evening Star, Volume XXXI, 8 May 1901, Page 4

THE RELIGION OF TRUSTS.

In last evening’s Star the following \ cablegram appears ; “ The brilliant crop prospects and activity in trade has caused wild speculation in Wall Street, New York. Last week there ' was-much wild gambling in steel. The final re-action ruined many of the small speculators.” In Friday’s issue we pointed out the tendency of speculation in America in the direction of big trusts, and which must always provoke a tendency to gamble, juggle ” would be perhaps a better word, an! as an illustration we quoted the example of the President of a Chicago steel combination, who by dexterous manipulation managed to “ rig ” the market, by closing some of the works over which he had control, so as to induce a “ slump ” in the market, by which he benefited to the extent of a million sterling. The gamble in steel alluded to in the cable was caused by the following transaction particulars of which appears in the papers received by the last mail. One of the mightiest combinations in the United States is that of the Carnegie Iron and Steel Company, which had a capitalised value of £50,000,000 —only fifty millions sterling. The latest information is to the effect that a new “ combine ’’ in this particular lino has been arranged or “ completed ” under the title of “ The United Steel Corporation,” the object being to manufacture steel, iron, copper, or other materials ; to own, occupy, and dovelopa mines, and to own means of transportation, but not to £own any railway in New Jersey—this is to meet Jersey State legislation, and in order not to clash with the great railway combinations. This mighty combine comprises the Carnegie Company, the Federal Steel Company, the National Tuba Company, the American Steel and Wire Company, the American Steel Plate Company, the National Steel Company, the American Steel Hoop Company, and the American Sheet Steel Company, The combined annual earnings are given at over 100 000,000 dollars. The total capitalisation of this mammoth concern is fixed at 1,100,000,000 dollars or £220,000,000 two hundred and twenty millions sterling. Is it a ■' wonder that when it was put on the market it caused a run and spelt ruin “ to many of the smaller speculators.” But there is something more behind it all, and that is furnished by a semiofficial statement that the result of the ama gamation would mean a total reduction in working expenses of £2,000,000 sterling per annum. In reality what does it mean ? If it. means anything, that pressure will bo so applied that the wages of the already under-paid working man will be so further reduced that the condition of the “ fellahs ” in Egypt will be luxurious in comparison, without the Ctate interferes. The existence of such a “ combine ” is a threat to the State. It is a crushing power, which either will have to be negotiated with r,r kept within bounds. And that brings us to the real crux.'of the position. Is it legal to combine? It is admitted at once that it is not illegal; but when such combinations become dangerous to the State, as such a combination must be that we have al uded to, it becomes a necessity for the State to interfere, or God help the State. The condition is such that it means a state of abject pauperism for the mass, and of mu ti-millionarism

for the few. Another combine has a'so

made its appearance in America, and that is in the matter of silk. A British combine, according to the London Morning Post, has arranged to buy up eve 7 silk mill in the United States. Is it not time that the masses should study their own interests and that Government should bo prepared to grapple with and confine these combinations within reasonable limits, or else the result will be a struggle too bitter to imagine. But it is not only in America that these “combines” exercise a ruling power. They exist in Germany to the extent of about 200, also in France and Russia. There is one remedy and perhaps it is rather a drastic one—compel all combines to publish annually a statement of the affairs of the Company, and allow them a fair percentage of profit, fixing a “ living wage ” and should any attempt be made to rig the market by closing down profitable concern, make the penalty a penal one. Forewarned is forearmed, and Australia or New Zealand should never allow themselves to be at the mercy of a small host of juggling speculators as is the case in America. It has been argued by some of the Press of New Zealand that the labor laws lias been the means of preventing millions being spent in this colony. Perhaps so, but this statement must be received cum grano sails. Even supposing it was so. Millions of capital means big combines; big combines, monopoly; tig combines, ruin of small traders and oppression to the workman—the cheapest labor is the most welcome. It moans the closing of small manufactories in the outlying towns and the centralisation of them in one or two centres, and it also means putting

the industrial power of the colony in the hands of one or two companies and becoming a threatening power to the State itself. It is absurd to talk about the loss of capital. Capital can

always protect itself, labor needs protection. Therefore the prosperity of this colony in a great measure depends upon its labor laws, the operation of which is watched with anxiety by the whole of the civilised world - and not only watched but are being followed. Let us hope that the Government of this colony will zealously watch the operations of these groat “ combines,” and take measures to prevent them becoming a danger and a menace to the general weal.