Trusts And High Prices

In tlie flrst renet km from the imMiimi. rative prices io;ced by competitioii, a combrnation lufu'iui. y poweiiul to do iso ofteo raises priees oí a product ifco a poiut as üfflreasonaKy higli as previous prlcee were mnreasamabOy low, nul bhis ta c11lasis for one oí tJie appaientOy potent argumente against the boieratiou oi trusts- ttot thcy are ivo to coosvumers. But Uiere la he repüy. Ürst, that the Uesi.-e to ol.taiu the tucréaaea pro.its consequeni ap0:1 .au eitencling ale oí piodueta will tac uot emlightened managers to keep itüeli seüimg prlees aá ■ j_ ...; 1aj nii.i tlie lowt poiiit iw wjiuDiuo"r ■■-- pro.itable produetion wUl xo ttie greategt extemt áucrease öonsuaaption. Wiu'u, l.uwruT, coneideration , ,, . lr prevaü, tóei-e la a íurther LJiLCk upoa ilie maüteaance oí exorbituait p;i:es iu tlictt caplfcai, wliich Ís lo tiow im.) i He ïieM in whi,-ii ..i i, e made by engendering new coonpetiuon. j;il:iy in tíie aócion oJ thi3 , .,, -i-u-tive ireauency has been eaused by tbe Laot tlmi tlie making o! enormouspro is tor a time ie kept secret often-times by a combinaron engaged in au indnsfcry requirlng i plant tor i'ts operatianfi so extenslve tnat grat capita] aaid experieneed managers are mecessary to establiali, sucui coinpetition ; and Mie delay lias been longest wheii, aluna wun - omdi'.ions, the product lias leen ui fc-uolx u. vaature that the payment bUereot uaitíanately comes from those not ooncerned '.n its iinmediate purt-aiaso. But it is a fact that in the mduhtii.U h!story oï the list quarter oenturv, these stadee, many a oomWmation strong]y forti it-d in the inaiü.. enante of undue pro It tas, sooaer or later, had its power broken tiie ltow of new ral.i.nl iiito its iicld.- From Tlie Meanlag üi Ocwporations and Trusts, by Log-am G. MePbereon, in ïlie Popular Sfianoe Monthly for July.