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the price of the raw material and the finished product can be definitely ascertained, and where the writer has ^sufficient information regarding the processes, so that the reasons for the variations in the prices can be adequately checked, seems to show that the combinations have in some cases had the power, temporarily at least, to control the market to a considerable extent, and that in most such cases they have used this power to increase the margin between the raw material and the finished product possibly by forcing the price of the finished material up or by forcing the price of the raw material down ; possibly in certain instances the power has been exerted in both ways. At any rate, the margin has increased, and with this, beyond question, the profits of the manufacturers. On the other hand, several instances to which attention has been called show that apparently this power is by no means sufficient to remove the combination from the influence of competition, either actual or potential, and that in a good many instances, within a comparatively short time after the formation of the combination, the margin has again decreased until it was as small as before the formation of the combination, at times even smaller. It is to be expected usually, of course, that as time passes improvements in methods of production will lessen the cost, and that, in consequence, with the same profits, the margin will decrease somewhat. If the combinations have been enabled to make the economics that their promoters ordinarily promise, this decrease in the margin would be expected, even though their profits were to increase somewhat. The fact that the power to increase the margin, temporarily at least, somewhat arbitrarily, and the fact that this margin has been increased in specific cases, seem to be clearly established. Here, again, however, one needs to be warned somewhat against too radical or too general conclusions. Those combinations that have been formed, for example, during the last year in a good many lines of industry have possibly been enabled to increase the margin mainly on account of the very strong demand for their products. In these industries the margin has probably been increased also to an almost equal degree by private companies who have not entered into any combination, the result in both cases being largely due to the extremely favorable conditions of business.
Taking all the employe's together, the percentage of increase of average annual wages has been 12.61. The greatest increase has appeared in the case of the unskilled laborers ; the greatest percentage of decrease in the unclassified employe's, while traveling salesmen have lost much more in average annual wages than have superintendents and foremen, the figures being respectively 7.43 and 2.77. In all classes of employe's, taking all of the establishments which have reported, there has been a decided increase in the number of employe's ; and in all cases, with the excep- tion of the traveling salesmen, there has been also an increase in the total amount of wages paid. The traveling salesmen have received less by 3.57 per cent.
Some of the older combinations, whose dividends have been published in trade journals and elsewhere and are well known to the public, make high profits. The returns given in the schedules of the present investigation vary considerably, but in most cases as yet profits have not been high, although, as will be recalled, the stock has often been issued to some extent for good will. In most of the newer organizations, those formed in 1898 and 1899, from which reports have been received, the regular dividends have been paid upon the preferred stock, but dividends have not yet been declared on the common. In combinations where the stock has been all common, a fair dividend has been paid. When one considers that a considerable amount of stock has been issued for good will, and not as against actual property invested, these returns cannot be considered unfavorable from the point of view of the combination. JEREMIAH W. JENKS, "Trusts and Industrial Combinations," in Bulletin of the Depart- ment of Labor, July, 1900. E. M.
Concerning the Intervention of the State in the Movement of Amel- iorating Cheap Housing. Is the state the only legitimate and necessary agent in ameliorating the housing conditions of the working classes ? As this question has been discussed by the different schools, and has had the attention of many countries England, Austria, Denmark, France, etc. it has received different solutions.
On account of the extension of the functions of the modern state, and the possi- bility of formulating the question with greater clearness, it has been thought neces- sary to go to the bottom of the matter and analyze anew the doctrine and the facts.
