Democratic Sentinel, Volume 15, Number 45, Rensselaer, Jasper County, 27 November 1891 — How Trusts Operate. [ARTICLE]

How Trusts Operate.

Major McKinley was the champion of the glass industries in Congress. By his efforts in their behalf he secured an increase in the duty on glassware from 40 and 45 per cent,, the old rates, to u uniform rate of 60 per cent, and at the same time imposing this duty on the boxes and other coverings as well as on the glass itself. Soon after the passage of the McKinley bill the glass men got together, and last July it was announced that they had formed a trust The history of this trust since its formation is interesting. The ■ following account is from the Boston Commercial Bulletin, an exponent of McKinleyism. “When the United States Glass Company was formed in July, it issued a circular to its customers all over the conn* try, stating its policy and, among other things, announcing that it did not intend to advance the price. Of course the combination was formed for the express purpose of increasing the profit on their goods, but this was to be done by economically operating their factories. This was to be effected by having each factory make a special or several special lines; for instance, one could make goblets and stem ware, and so on. . The sets of molds would also be limited, the saving amounting to considerable, as each set cost from >3,000 to >5,000. “The number of high-salaried officers could be reduced. Again, there would bo no danger of accumulating stocks, as a factory making a certain line could shut down if there was a surplus on the market, and the manufacturers joined in one strong associat on, could be more independent of the union of glass workers, with which they have in the past been unable to cope. Thus, by gaining these advantages, the association proposed to make greater profits than in the past.

“Four months have not passed yet, but prices have already been pushed up on staple lines from 5 to 10 per cent, and on some specialties, such as cologne bottles and similar goods, the advance has been fully 50 per cent Jobbers look for a greater advance than this before the year is out. What its limits will be it is hard even to surmise, but judging from the low basis on which goods sold before the combination was effected the advance was considerable. “The increase in the price of novelties and new patterns has not come yet. What are called new patterns have been on the market now since last January, and no newer ones are expected until the advent of the new year. When they are put on the market the jobbers say they will most likely be obliged to pay comparatively more than in past years. The advance is very likely to be considerable also, as the making of new patterns entails the risk of not having the goods take with the purchasing public, a point which competition in the past did not admit being fully taken into account. “By the way prices have been advanced of late on table glassware, it is natural to suppose that the United States Glass Company has practical control of the market. There are in this country about twenty-six factories in* all that make table glassware, and when the association was first formed it included fourteen of these. Most of the powerful concerns were secured, yet several remained outside Since July two or three more companies have entered, and of the ten or so left but two or three are large concerns that have the power to harass the combination. “These two or three concerns, it is understood, have agreed to be friendly with the new United States Glass Company and follow the policy of the latter in putting prices up or down. There are some who expect to see these outsiders yet immerged in the combination, so friendly has been their attitude in the past. ” Surely the Commercial Bulletin does not agree with the New York Tribune about the “trust-killing” properties of the McKinley tariff.