ATTITUDE OF GOVERNMENT TOWARD TRUSTS 211
Not only is the movement toward combination the work of natural economic forces, but it possesses certain positive advan- tages for society, which may be said to be either actual or potential. Without attempting to discriminate between these two classes of benefits, suffice it to say that, if they are actual, then we are already enjoying them, and if they are potential, there must be some way to secure them for the use of society. Some of these advantages are : (i) the opening of new mar- kets; (2) the production of new inventions, resulting in better machinery; (3) the employment of minor processes in connection with the main process; (4) increased efficiency in management; (5) the utilization of waste product; (6) capacity to try new experiments ; (7) the reduction in the cost of selling, especially when the reputation of any commodity depends upon the establishment of popular brands through advertising; (8) the saving of cross-freight rates; (9) the steadying of prices and the regulation of production to meet demand, which reduces the likelihood of panics ; and (10) the bettering of the conditions of labor, by improved sanitary environment, shorter hours, higher wages, continuous employment, and by the facilitation of labor organizations. 1
Great as these advantages may seem, there are manifest evils apparently connected with the movement. For instance, the large combinations, mainly through the enjoyment of freight- rate discriminations, are able to crush out competition by local rate-cutting, and abnormally raise prices in other localities ; they corrupt our courts and legislatures ; they float their securities upon the market, thereby causing great speculation ; they over- capitalize their earning power, and thus rob the investor of his legitimate dividends. 2
However, the greatest evil charged against the combinations
I HoBSON, Evolution of Modern Capitalism, p. 117; ELY, Monopolies and Trusts, p. 195; Report of Industrial Commission, Vol. XIX, pp. 608, 610-12, 614; BURTON^ Crises and Depressions, p. 301; LE ROSSIGNOL, Monopolies, Past and Present, p. 233; GUNTON, Banker's Magazine, February, 1903; Census Report, Vol. VII, p. Ixxxi.
"Report of Industrial Commission, Vol. XIX, pp. 615, 616, 621; F. A. VANDERLIP 5 Banker's Magazine, November, 1902; J. R. COMMONS, Independent, May I, 1902; JENKS, The Trust Problem, pp. 93, 106.
