A steel rail combination was some years ago formed among previously
competing firms in America. This combination discovered that too many
rails were being made and that prices were being cut. Accordingly, one
of the mills in the combination--the Vulcan mill of St. Louis--was
closed, and stood smokeless for years: its owners meanwhile receiving a
subsidy of $400,000 a year from the other mills in the combination for
_not_ making rails. That is how the owners of the Vulcan mill earned
their “wages of superintendence.” It is needless to add that no payment
was made to the men for _not_ working: they were thrown on the streets
to meditate on the right to “liberty and the pursuit of happiness,”
secured to them by the Declaration of Independence.
Or, again, take the case of the anthracite coal lands of Pennsylvania,
occupying an area of some 270,000 acres, and held by the Reading
Coal and Iron Company, the Lehigh Valley Railroad, the Delaware,
Lackawanna and Western Railroad, the Delaware and Hudson Railroad,
the Pennsylvania Railroad, the Pennsylvania Coal Company, and smaller
firms and corporations tributary to these. The rich owners, popularly
known as the “coal barons,” agree to fix absolutely the wholesale price
of coal, always securing an immense rise just before the winter sets
in. There is no such thing known or possible as free trade or open
competition in the anthracite coal produce of America.
Combinations in the United States have been made by the Western
millers, the New York icemen, Boston fish dealers, manufacturers of
sewer-pipe, copper miners, makers of lamps, pottery, glass, hoop-iron,
shot, rivets, candy, starch, sugar, preserved fruits, glucose, chairs,
vapor stoves, lime, rubber, screws, chains, harvesting machinery, pins,
salt, hardware, type, brass tubing, silk and wire. In these trades
freedom of production and sale has been for a time partially or wholly
destroyed. The American business man is very angry when boycotting
is resorted to by workmen; but he is quite ready to boycott others
when his interests lead that way. The stamped tinware makers in 1882,
formed a ring and expelled members who sold at lower prices than the
fixed rates, and refused to allow anyone in the pool to sell to the
offenders. Some of the previous facts are taken from an article by Mr.
Henry D. Lloyd,[59] who has investigated capitalist combinations with
much knowledge and insight. From the same article I quote the following:
Public-domain text, read in full here on John Shaqi.
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