160 WILLIAM R. MERRIAM 



is much less under the industrial combination plan than under 

 the former system, a great saving being effected in the cost of 

 administration and general plan of operation; that such com- 

 binations, conducted under a common oversight and control, 

 make it possible to dispense at will with the active use of those 

 plants which, because of their geographical situation, are not 

 best adapted for the production of the articles to be sold. 

 Another advantage arises from the fact that the several proc- 

 esses involved in the production of the article in question, 

 instead of being carried on together in each of a number of 

 independent establishments, may be localized in separate 

 mills. This specialization introduces a uniformity in the 

 operations of each mill which is conducive to economy. It is 

 urgently maintained, in view of all these considerations, that 

 under combinations the wants of the consumer are satisfied 

 at a lower price than under the old competitive plan. 



Those who oppose the formation of industrial combina- 

 tions are very strenuous in their efforts to secure such legisla- 

 tion as will materially restrict the operation and management 

 of these vast corporate enterprises. They maintain that the 

 " captains of industry," who, with their mighty power of con- 

 centrating wealth, are constantly extending the field of their 

 operations, are a menace to society, not only in an industrial 

 way, but also from a social standpoint. They declare that 

 these enterprises are veritable monopolies, with the power of 

 compelling the people to pay higher prices for the necessities 

 of life than would obtain under the competitive system; that 

 they stretch out their mailed hands to reach the very sources 

 of government itself, controlling legislatures, congress, the 

 courts, and great civic bodies; in short, that they are an in- 

 cubus on the whole social structure, endangering the very 

 existence of the republic. 



There is no doubt that certain of the industrial combina- 

 tions do control a large proportion of the output in their 

 various lines of business, and that the conditions of produc- 

 tion are such as to give them some advantage over their com- 

 petitors. Their power of influencing prices is very great, and 

 may at times be used to advance them arbitrarily, or, what 

 is perhaps worse from an economic point of view, actually 



