i 4 2 CHARLES J. BULLOCK 



is dead and that monopoly is inevitable in most important 

 branches of manufacturing industry. Remedy there will 

 be none, save public ownership or public regulation; and 

 past experience raises uncomfortable doubts whether, under 

 the second method, the government or the trusts would be 

 the regulating power. 



Most of the questions raised by this survey do not admit 

 of the application of precise methods of determination, 

 and all that can be done is to weigh opposing forces and 

 form a rough estimate, based upon general impressions 

 oftener than exact measurement, of the relative strength 

 of the advantages and disadvantages of consolidation. While 

 conclusions thus reached fall far short of certainty, and pre- 

 diction is dangerous, this is due to the fact that data for a 

 more exact investigation are denied to economists, who can, 

 at the best, secure but occasional glimpses into the inner 

 workings of great business corporations or draw what infer- 

 ences seem warranted by the facts that come to the attention 

 of the public. This examination of the recent drift of opin- 

 ion concerning trusts would seem to have established only 

 two conclusions: first, it will be wise to maintain a position 

 of skepticism concerning the alleged advantages of combina- 

 tions; and, secondly, it is very important to notice that the 

 alleged tendency to permanent monopoly is irreconcilable 

 with the continuation of anything that properly can be called 

 competition. 



If we adopt the conclusion that it is improbable that 

 trusts are caused by superior efficiency in production, we 

 are not, of course, without assignable reasons adequate to 

 explain the movement towards consolidation in the United 

 States. Control over limited supplies of natural resources 

 is the strength of some combinations; railway discrimina- 

 tions, patent rights, and the shelter of protective duties have 

 given material comfort and support to others. The oppor- 

 tunity to secure fancy prices for manufacturing plants, which 

 could then be capitalized at still higher figures for the profit 

 of the promoter and financier, is another explanation of vast 

 importance. With so many premiums offered for combina- 

 tions, the only cause for wonder is that any industries have 



