Standard Oil Company; Trusts, Industrial -- United States
War has been made on poor men, paralytics, boys, cripples, widows,
any one who had the "business that belongs to us." An instance taken
from abroad will be the last. The combination between the American and
the Scotch refiners, formed several years ago, fixed the price of the
principal product, scale, at threepence a pound in 1892. The break-up
in that year was followed at once by a decline from threepence to
twopence. This is a saving to the public of $1,000,000 a year. "All
the relative products," says the London _Economist_, November 12, 1892,
"have practically collapsed in value." Candles, for instance, declined
20 cents a dozen, "and the finer qualities were sold at the same rate
as the commoner sorts."
These are the facts, to fit the phrase of one of the monopoly who
described to Congress how it "bridges it to the consumer at the lowest
reasonable rate." The "bridge to the consumer" spans 1872 to 1894 and
Europe and America, but it is not a bridge of cheapness.[621]
To prove that oil is cheaper than it was is not to prove that it is
cheap.
Anything begins to be dear the moment the power to fix the price has
been allowed to vest in one. The question whether our monopolies have
made things cheap or dear in the past pales before the exciting query,
What will they do in the future, when their power has become still
greater, or has passed by death, descent, or sale into hands less
shrewd and greedier? Such power never moves backward. Says President
Andrews, of Brown University, in the article quoted below: "When a
commodity is turned out under such conditions, cost no longer regulates
the price. This is done quite arbitrarily for a time, the seller's whim
being perhaps sobered a little by his memory of old competitive rates.
Slowly caprice gives way to law; but it is a new law--that of man's
need. Prices go higher and higher till demand, and hence profit, begins
to fall off; and they then play about the line of what the market will
bear, just as they used to about that of cost. The producer can be more
or less exacting, according to the nature of the product. If it is a
luxury, the new law may not greatly elevate prices above the old notch.
If it is a necessity, he may bleed people to death."
Public-domain text, read in full here on John Shaqi.
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