THE MANUFACTURER AND DOMESTIC MARKET 121 



of raw materials, to which reference has already been made. The 

 movement has been, in this manner, made general, with the result 

 that many series of consecutive establishments can now be found 

 which are working into one another's hands within non-competi- 

 tive groups. The blast-furnaces have acquired ore properties, and 

 steel manufacturers have in turn absorbed them and transporta- 

 tion facilities. Furniture factories have built saw-mills upon their 

 own timber-lands. Cooperage- works , are owned by flour-mills and 

 whisky-distilleries. Pulp-mills and their spruce-timber are owned by 

 paper-mills. The meat-packers establish canning and car-works; 

 the car-builders operate linen-factories ; the reaper-works control the 

 manufacture of binder-twine; the breweries engage in the production 

 of malt. These combinations are made possible by the improve- 

 ment in systems of cost-accounting and internal administrative 

 methods. They give the supplying-plants certainty as to markets, 

 the receiving-plants certainty as to supplies and absolute control 

 over their quality. Shipments to and from intermediate markets 

 are unnecessary, and the expenses of traveling salesmen, dealers, 

 advertising, and the waiting period of the market are all eliminated. 

 In short, for the uncertainty and expense of competition is 

 substituted the economy and exact calculation of a system of 

 bookkeeping. 



Before leaving the subject a word should be said about an entirely 

 different operating cause which is at work to withdraw many busi- 

 nesses from intermediate markets. This is the application of science 

 to the utilization of wastes. The growth of large concerns has often 

 made the quantity of mill-supplies and advertising materials, pack- 

 ages, etc., so great that subsidiary industries can be profitably 

 started in the interest of a single corporation. Repairs also become 

 important enough to warrant the erection of well-equipped shops. 

 In a like manner the accumulation of large quantities of waste 

 products in concerns of efficient management, equipped with scien- 

 tific laboratories and possessing the capital necessary to put through 

 any logical extension of the business, has given rise to a great variety 

 of by-product manufactures. These allied businesses are owned and 

 managed by the principal concerns and receive their materials with- 

 out purchase from them. They have been able to offer very effective 

 competition on the finished products market and so to command 

 attention to the commercial principles which they illustrate. 



Let us pass to the third main division of the subject and consider 

 the attitude of the manufacturer toward the finished-products market. 

 It may be observed that while there is a great difference in the policy 



