THE MEANING OF CORPORATIONS AND TRUSTS. 305 



stance, one man now controls what is practically one organiza- 

 tion, owning mines at Pittsburg, docks on Lake Erie, vessels that 

 ply on tlie lakes, docks at the head of the lakes, and coal yards 

 at St. Paul and Minneapolis. As the retail price for Pittsburg 

 bituminous coal at St. Paul and Minneapolis has been materially 

 reduced in the past ten years, it will be observed that the co- 

 ordination of the various functions enumerated has resulted in 

 immense benefit to the consumers of coal, that has extended 

 throughout the Northwestern States. When contributory func- 

 tions are absorbed by a combination, the men engaged in the 

 performance of those functions are not deprived of a liveli- 

 hood. Their services are needed in the performance of those 

 same functions by the combination, which must yield them 

 compensation in accordance with their experience and ability. 

 If it be the effect of this competition to force a lesser income 

 than accrued from the profits theretofore enjoyed, the result, 

 while it may to a greater or less extent be to the misfortune of 

 the absorbed individuals, is for the good of the community as a 

 whole. If the functions which they did perform can be per- 

 formed by the combination equally well at less expense, it would 

 be unjust to the consumers of the ultimate product for these indi- 

 viduals to continue to enjoy such profits. There is the further 

 consideration that in the performance of the various functions 

 necessary to the continuation of a great organization men of vari- 

 ous kinds of ability can devote their energies to the tasks for 

 which they are best adapted. The organization and the nation 

 as a whole are therefore benefited by having the best outcome of 

 men who, if working independently in a smaller sphere, would be 

 hampered by having to give a greater or less proportion of their 

 time to tasks for which they are less adapted. 



The instinct of self-preservation, carried to its extreme in the 

 desire for the greatest gain with the least liability for aggression, 

 is apparent in the difi^erent steps of industrial combination. The 

 limited partnership laws in effect in many of the States contain 

 provisions restricting liability that, as a rule, have stood the test 

 of application, but there has been much irregularity on the part 

 of corporations that, obtaining a charter under the laws of a par- 

 ticular State, have gained advantages that have permitted opera- 

 tions in other States under the laws of which similar privileges 

 could not have been obtained ; and, conversely, particular States 

 have placed unjust restrictions upon the operation within their 

 jurisdiction of corporations working under charters obtained in 

 other States. The desire to evade responsibility, together with 

 the desire to evade the assault that in many localities is facilitated 

 by the laws arising from distrust of corporate action, has led 

 certain of the combinations known as trusts to adopt carefully 



VOL. XLV. 24 



