THE MANUFACTURER AND DOMESTIC MARKET 117 



develop the scientific frame of mind. The striking combination of 

 factors of production opens the thought to large plans. The changes 

 constantly required in machinery and processes impel the manager 

 to progressive policy, while visions of the economy of production on 

 a large scale attract him. The manager is in a training-school for 

 cultivating quick decision, figuring costs, managing men, freely 

 laying out money where conditions justify, and grouping, com- 

 bining, and governing the productive factors. The result is that 

 in and through our American manufacturing industries have arisen 

 the " captains of industry," who have laid hands upon the undevel- 

 oped or loosely coordinated commercial functions wherever found, 

 and have developed them and assumed the direction of them. 



Struggle for the Control of Raw Materials 



To take up our specific topic and define the controlling position 

 which the manufacturing industries have secured over the domestic 

 market, it will be convenient to divide the subject into three parts, 

 conforming to three classes of markets and the separate causes 

 operating on each. 



Let us first consider the struggle for the control of raw materials. 

 For some time an effort has been made by manufacturers to more 

 effectually control the source of supply of their raw materials. For 

 those materials of which the quantity is relatively fixed, this has 

 resulted from the definite development of sources of supply and the 

 increase of manufacturing demand, carried to such a point that 

 the chances of accommodation on the open market are deemed by 

 business managers to be precarious. As a result, manufacturing 

 concerns in many lines are anticipating their needs and are buying 

 or have bought stocks of undeveloped materials, and are erecting 

 exploitive works and establishments for preliminary manufacture. 

 We find makers of soap and lard substitutes building cotton-seed oil- 

 mills in the South. Pulp-mills invest in pulp- wood lands; fertilizer 

 manufacturers open phosphate-rock quarries; oil-refineries lease and 

 purchase oil-lands. The change is already complete for anthracite 

 coal and Northern pine; it is just now being completed for Bessemer 

 ore and Western timber; it is rapidly going on for coking-coal, non- 

 Bessemer ores, and Southern pine. One of the striking signs of the 

 advent of a new economic condition in this country is the rapid rate 

 at which, during the last fifteen or twenty years, raw materials have 

 passed out of the hands of small holders who offered them upon 

 open markets, into the hands of large corporations closely affiliated 

 with manufacturing and transportation interests. To use an ex- 

 pressive phrase, there has been a scramble to prevent being frozen 

 out. This has not been due so much to exhaustion of supplies as to 



