Democratic Sentinel, Volume 16, Number 10, Rensselaer, Jasper County, 25 March 1892 — Trust Economies. [ARTICLE]

Trust Economies.

i We have been trying to find in the | current reports of the trade journals some evidence as so the changes made in prices when the manufacturers in a large industry lose the advantages derived from those “economies” which a trust or similar combination enables : them to practice. Everybody has heard ;of these “economies.” Everybody has been told by the trust makers that they , reduce the cost of production and the selling price of the products. Many have been surprised when they saw : prices considerably increased as soon as , combined manufacturers were able to ! enjoy the “economies.” It appears also j that prices suffer a serious decline when ; manufacturers who have been in comi bination are no longer assisted by tho j “economies." The facts are curiously !at variance with the trust makers’ j doctrine. j The combination of the manufacture ! ers of steel beams was dissolved some i weeks ago. While these manufacturers j enjoyed the saving caused by the “econj emies” the price of steel beams was 3 1-10 cents per pound at the mill, or $69.44 per long ton. A few days ago 2,000 tons were sold in Chicago at the price of 21 cents, delivered. Other sales at even lower prices have been reported, as follows: “It is stated that one large contract, 5,000 tons, for season’s delivery, has been placed with a leading architectural works in this city [New York] at 2 cents, Pittsburg mill. ” —The Iron Age, Feb. 11, 1892. “In the beam trade the only item of news of the week is the report that contracts for 5,000 tons have been placed in Boston at 2 1-10 cents, delivered.”—The Iron Age, March 3, 1892. The price of barbed wire, as fixed by the barbed wire trust, was, at Pittsburg, on Jan. 28, just before the dissolution of this combination, $2.55 for painted and $3.05 for galvanized. On March 3, about one month after the dissolution of the trust, tho prices at the same place were $2.25 and $2.65, and corresponding reductions had been made at other points. The changes caused by the loss of the trust “economies* may be set forth as follows: With Without “econo- “econo- Deoline, inie«.“ mies.” per cent. Steel beams $t9.44 $44.80 35 Barbed wire, painted... 2.55 2.25 11 Barbed wire, galvanized 3.05 2.65 13 These figures will tax the ingenuity of the professional advocates of trustism. Immediately after the great advantages due to the practice of combination “economies” were withdrawn, the price of steel beams did not rise. It fell 35 per cent. And in the case of barbed wire there was a decline of 13 per cent. The trust’s professors should overhaul and revise their chief doctrine. —New York Times.