H2 MAURICE H. ROBINSON 



and higher forms. This is seen in the progress of labor 

 unions, in the organization of business associations, in the 

 organization of governments, and at the present time, most 

 pronouncedly in the higher organizations of modern business. 

 III. The Form of Consolidated Industries. It has 

 often been stated that the form which consolidated industry 

 assumes is of small account, that it is the purpose rather than 

 the form that is of chief interest. It is entirely true that 

 form is of less importance than the character and working 

 of the consolidation. Still, when it is once recognized that 

 the modern trust is a business organization and that in each 

 organization of industry form is a factor of powerful influence, 

 this question will not be lightly passed over. It is certainly 

 true that the form under which business operations are con- 

 ducted determines to a large extent the economies possible 

 and to a certain degree the policy of the business. The part- 

 nership has certain advantages, the combination of interests 

 into a pool or the kartel certain other advantages ; the corpo- 

 ration still others. The form which the consolidation assumes 

 determines, to a considerable extent at least, the question of 

 whether it will find it desirable in its operations to aim at a 

 low cost of production or higher prices for its products. In 

 America, consolidated industry has finally taken the corporate 

 form; the same is true in England and to a certain extent 

 in Germany and Austria. In general, however, the German 

 form for the consolidation of industry is the kartel, or the 

 industrial combination proper. The testimony, and espe- 

 cially the report, of Professor Jenks on the European trusts 

 shows that there is a vast difference in the working and in the 

 effect within the industry itself and upon industries with which 

 it is brought in connection, of a trust under the kartel form 

 from that of a trust under the corporate form. The great 

 corporation is, of course, a higher form of organization than 

 the kartel. It harmonizes the entire interests of the industry 

 consolidated. Its permanent interests are always dependent 

 upon lowering the cost of production and increasing the out- 

 put. It thus tends naturally to reduce prices in order to in- 

 crease its market. The German combination, on the other 

 hand, depends largely upon its monopolistic position or at 



