SOCIOLOGICAL EFFECTS OF THE TRUST II 



ment ownership of railroads tends to take away great opportunities 

 for the investment of private capital, but, at the same time, may make 

 it possible for the private investor to use his capital in different ways, 

 and in ways that he is now prevented from using it by discriminating 

 rates. It is well known that at the present time in many parts of the 

 United States industrial development is greatly hindered by the freight 

 rates that have been established by the railroads. Governmental 

 regulation of rates might interfere with private rights in the railroad 

 business, but might also open for investment many new opportunities 

 in the localities that are now checked in their development by dis- 

 criminating freight rates. 



The trust and corporation forms of industry tend to increase oppor- 

 tunities for promotion according to merit. When business is conducted 

 by a manager, as is the case in the corporate form of industry, the aim 

 is always to secure greater efficiency in the employees. A man's position 

 depends more upon his ability to do his work well than on his pull, or 

 on his relationship to the head of the firm or to one of the partners, as 

 was the case under the old method of management. Formerly the 

 boy was taken into his father's or uncle's store or factory, and, even 

 though more or less inefficient, was often continued in the position when 

 the more efficient clerks were kept in subordinate places. In this way 

 the sons have often dwindled along and made a living from the mere 

 inertia of the business. 



Under the trust this is all very different. The father's and uncle's 

 business is no longer in their hands. It is in the hands of the manager 

 of the trust, and he desires only to earn dividends for the stockholders. 

 Anything that in any way tends to interfere with this is not hkely to be 

 tolerated by him. He will therefore have in his employ only the most 

 efficient workmen. To get them he will select persons according to 

 their fitness for the work. The boy who has no other quahfications 

 except that he is the son of his father will not be able to work for the 

 trust unless he can show by his ability that he is more efficient than 

 some one else would be. Because of this the poor boy with ability is 

 not so apt to be hindered in his promotion. Thus industry becomes 

 more democratic. 



