Now trusts are an attempt of capital to escape from the tyranny of the market, to eliminate the waste of competition and bring order in the place of disorder by making supply proportionate to demand. The testimony of John D. Rockefeller before the Industrial Commission is illuminating on this subject. In answer to Question 9, he says that he "ascribes the success of the Standard Oil to its consistent policy to make the volume of its business large." To Question 10, he says he did this "by coöperation, or what is the same thing, combination." But the necessity of keeping the volume of the business large made it indispensable to extend the market. He says "Dependent solely upon local business, we should have failed years ago. We were forced to extend our market and to seek for export trade." "And so," he says, "the Standard Oil spared no expense in forcing its products into the markets of the world."
The despotism of the market extends over the whole world. It is impossible for any one nation to organize its industry, or for the industry of any one nation to organize itself, under a world-wide competitive system, without taking into consideration the conditions of the world market. The Standard Oil could not maintain prices in competition with foreign oil. It had to carry the industrial war into Europe and Asia, and did this by eliminating competition at home; putting an end to anarchy of distribution as well as to anarchy of production; by transforming the whole system through the building of pipe lines, the use of tank cars and tank steamers, through an enormous aggregation of capital, and the use of every ingenious improvement. The Standard Oil succeeded in doing this and "receiving in return from foreign lands nearly $50,000,000 per year."
Mr. Rockefeller is an adroit witness, and carefully refrained from reference to the methods by which competition was crushed as an indispensable preliminary to what he calls the "enlargement of the business." Mr. H.O. Havemeyer, President of the Sugar Trust, was more frank. Here is his testimony on this subject in full:
Q. (By Senator Mallory) "Did I understand you to say—perhaps I may have misunderstood you a while ago—that it was your policy to make as much profit out of the consumer as you possibly could?"—A. "Consistent with business methods."
Q. "Consistent with business principles. In other words, your idea is that your organization, the American Sugar Refining Company, will, if it can, get the maximum profit out of its business from the consumer. Now, I also understood you to imply at least that it is the policy of the American Sugar Refining Company to crush out all competition if possible."—A. "But that is not so; there is no such testimony. I understand it has been put in that form by one of the gentlemen here, but it is not the fact. What I said was that it was the policy of the American Sugar Refining Company to maintain and protect its trade, and if it resulted in crushing a competitor it is no concern of the American Company; if he gets in the press, that is his affair, not ours."
Q. "And if anyone interferes with the business, profits, or competition of the American Sugar Refining Company, it is its policy to prevent it if possible?"—A. "By lowering profits to defy it."
Q. "And if it results in crushing him out?"—A. (Interrupting) "That is his affair."
Q. "Not the affair of the American Sugar Refining Company?"—A. "No."
Q. "Now, suppose in the natural course of events the American Sugar Refining Company should suppress—we will not use the words 'crush out'—all competition, all opposition. I understand from your theory—business principles—that you would then seek to get out of the public and consumer the largest amount of profit consistent with your idea of business principles?"—A. "Precisely."
Q. "Then, if you had the power to charge or impose prices on the public, what would be your idea of the limit that the public could possibly stand?"—A. "I think it would stand a quarter of a cent to-day. I think we could do it for twenty cents a hundred. I think the country is really damaged by having a number of people in the business."