Competition; Monopolies -- United States; Trusts, Industrial
Our newest and most wonderful fuel, natural gas, has already come under
the control of a few great corporations, who own the wells and the pipes
for conveying and distributing it to the consumers. A striking instance
of the arbitrary nature of prices when under a monopoly's control was
shown at Pittsburgh a few months ago. As is well known, upon the
introduction of natural gas to that city a great number of the
manufactories, as well as the private houses, discarded coal, and at
considerable expense fitted up boilers, furnaces, etc., to use the new
fuel. After the use of the gas had become general and its value had come
to be thoroughly understood, the company furnishing the supply advanced
the rates 100 per cent., without previous notice; and despite the
remonstrance of indignant consumers, the advanced rate had to be paid or
the use of the gas discontinued, the latter alternative involving the
loss of the money invested in piping, burners, etc.
Of the minor products of mines and quarries, marble, sandstone, borax,
salt, and asphalt are all known to be more or less thoroughly under the
control of monopolies, which, though less important and powerful, show
the same tendency toward the destruction of competition.
Great as is the extent to which the monopoly of the mineral wealth of
the world has gone, we can scarcely doubt that if the movement is
unchecked it will go much farther. In one sense the only absolute
necessaries of life are food and clothing. But to the civilization of
to-day the metals and minerals are no less indispensable; and these
cannot be made anywhere, like manufactured goods; or grown on wide
areas, like the products of the soil. We are absolutely at the mercy of
the men who own our deposits of coal and copper and lead, and it is only
to be expected that they will take greater advantage of their legal
industrial advantage. The combinations that exist will be made stronger
and more binding, and new ones will be formed. The French copper
"corner" has taught men that under the broad protection of International
law their schemes of industrial conquest may embrace the world; and it
is not to be doubted that the temporary "corner" will yet result in a
strong permanent combination; and that the precedent set by this
successful monopoly will be eagerly followed by those who wish to secure
like profits by the control of some other form of mineral wealth.
IV.
MONOPOLIES OF TRANSPORTATION AND COMMUNICATION.
We have already alluded to the fact that the concentration of
manufacturing in large mills at great commercial centres has been made
possible by the development of railway transportation, and that the
rapid settlement of our Western prairies is due to the same agency; but
it is worth while to note more fully the difference between ancient and
modern conditions in the business of transportation.
Public-domain text, read in full here on John Shaqi.
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