SOCIOLOGICAL EFFECTS OF THE TRUST 



By John Burton Phillips 



It is proposed in this paper to point out some of the effects on society 

 of the trust method of conducting industry. No attempt is made to 

 discuss the trust problem as a whole, nor to explain the economies in 

 production that result from the formation of great industrial combina- 

 tions. The effect of trusts on the prices of commodities is not considered. 

 Aside from these particulars, there are certain important features in 

 the operation of industry by great combinations that are well worth 

 considering. There are improvements in modern business life that 

 have resulted from the destruction of the small dealer and the organi- 

 zation of the business on a large scale. Since the decision of the Supreme 

 Court in the Northern Securities case, so much feeling against every 

 great combination has been stirred up that it may not be amiss to mention 

 some of the services the organization of industry on a large scale has 

 rendered to society. While the trust has brought many evils in its 

 train, and while it is probable that a number of these combinations 

 should be destroyed, it is perhaps wiser to seek for some method to 

 regulate them than loudly to demand their entire abolition. A careful 

 consideration of the manner in which they affect society will enable one 

 to form a more intelligent opinion as to the best methods of dealing 

 with this difficult problem. 



Among other things, the trust has increased competition among its 

 employees, eliminated the rule of the obstinate man who hindered 

 progress, created new and high-class opportunities for specially gifted 

 men, brought about a saving of social energy and a greater degree of 

 speciahzation, provided a more speedy means of promotion according 

 to merit, improved the moral tone of those it employs, and taught the 

 world to undertake great enterprises. 



The progress of civilization has been marked by increase of com- 

 petition. In this way the right man has been selected for the place 

 he could best fill. This is a great saving of social energy. The tendency 

 is to eliminate the inefficient man. No society can afford to have its 



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