A CHECK ON TRUSTS.

Greymouth Evening Star, Volume XXXI, 17 June 1901, Page 4

A CHECK ON TRUSTS.

Some weeks ago we called attention to the mcnanee to society existent in the gigantic American trusts or combinations, which by the formation of “rings” or “corners” unduly inflated the values of various articles of commerce. The gambling instinct, so inherent to mankind, makes it improbable that these combinations, once their possibility for speculative purposes has been discovered, will ever entirely cease, and so long as their operations are confined to railroads and the like the inevitable loss will fall in the right quarter. But when any combination alLcts articles of everyday use, the enhanced price of which militates against the national welfare, then it is .the bounden duty of the Government to devise some method which will keep the evil within bonnds. An ingenious check of the requisite kind is, according to a Canadian correspondent, being put in force by the Dominion Government, which, under a clause in the Customs Act, has power to deal with trusts and combinations. An official inquiry has been granted into a combination alledgsd by the Canadian Press Association to exist for the purpose of squeezing the newspaper publishers by forcing up the price of news printing paper. The chances of success of a “ corner ” in any article must necessarily be based upon the tariff conditions, and were a sudden abolition or reduction of the duty possible, the market could easily be swamped by supplies from other parts, and thus the “corner men ” would find thera-elves left severely ont in the cold. The Canadian Legislature has shrewdly seized upon this fact, and if at the close of the present inquiry the judge should report that a trust or combination exists, to the disadvantage of consumers, and that the adverse condition is dependant upon the retention of the customs dues, the Governor-in-Council has the power to order the reduction or abolition of the duty so as to allow competition full swing in equalising the prices. On one rather important point information is not forthcoming. ]n the event of Freetrade being established in any article operated upon, thus breaking up the combination and bringing prices down to below payable level, would the duty be reimposed, or would the article bo free of duty lor all time ? However should the present test case succeed and the legislation prove workable] so far as Canada is concerned, it would be a wise move on the part of the United States Government to take the matter up : indeed. a similar clause might well bo included in the Customs Acts of this colony and of the Australian Commonwealth.