INVESTIGATING THE TRUST PROBLEM 109 



often certain expenses incident to the management of business 

 upon a large scale have crept in which partially offset the 

 economies that have been effected. Upon the basis of the 

 facts disclosed, as summed up by the commission, the causes 

 of combination are, first, competition; second, economy of 

 production and distribution; third, the hope of monopoly 

 power. The first and third of these forces, the former com- 

 pelling consolidation, the latter drawing business interests 

 together, are permanently active. The second certainly will 

 be at work until the united establishments have attained that 

 size which will give, under a given condition of the arts and 

 experience in business management, the maximum economy. 

 With the increased experience in dealing with great business 

 interests, there seems to be no possible limit to their size, 

 so long as men can be found of sufficient caliber to organize 

 and manage the consolidated corporations. If then the three 

 causes named above are the only ones answerable for the great 

 combinations, it would seem that the dream of the socialists 

 might after a time be realized through the evolution of the 

 partnership into the corporation, of the corporation into the 

 corporation of corporations, until it should finally embrace 

 all interests which might in any way, if left independent, com- 

 pete with each other. 



In opposition to this view there are many witnesses who 

 testified to the power of other forces. It will be admitted that 

 whatever contributes to the growth of the large establishment, 

 causing it to grow faster than its smaller neighbor, must be 

 considered in connection with the causes that lead to the 

 formation of the modern trusts. It is affirmed by witnesses 

 that the policy of discrimination in freight rates, giving the 

 competitive centers lower rates than the noncompetitive 

 centers, giving the business man with larger resources lower 

 rates than his weaker neighbor, has contributed in many 

 cases to the growth of certain corporations and to the destruc- 

 tion of others. If this be so, and its truth can hardly be ques- 

 tioned, discriminations by the railroads must certainly be 

 placed among the powerful, though less permanent forces, 

 which have contributed to the formation of the great consoli- 

 dations. It is also a well known fact, to which the testimony 



