The Copper Syndicate and its Troubles.

South Canterbury Times, Issue 4909, 18 January 1889, Page 3

The Copper Syndicate and its Troubles.

The trust or combine known as the Copper Syndicate, which is operated in Franco but extends its business transactions to nil copper-producing countries, is perhaps the most conspicuous illustration on record of the dangers of modern trusts, and of the possibility of combined capital controlling everything that is agreeable to the eye and pleasant to the senses, until at last we may expect the whole earth and the very air we breathe to be made the subjects of a monopoly. It is not that copper in itself is such a dangerous article to monopolise. The world could get along fairly well if there were not a pound of copper in it, and the indications arc that it will try to do so if the existing combination holds together much longer. The consumption is falling off at a remarkably rapid rate. The figures show that the demand was decreased 33 per cent, within the past 18 months, at which rate of reduction it will not be long before the syndicate is loft with an immense stock and many contracts on its hands. The inevitable consequence will bo that prices will fall lower than they ever were before, and copper, meanwhile, having gone largely out of use, it may be a generation before it resumes its normal price, and in the long run the permanent losses will far exceed the temporary profits. It is, however, in the nature, scope, workings, and evil example of the copper syndicate that the

! principal danger lies. It has demonstrated i how easy it is to do two moat monstrous and , wicked things,—viz , limit production, and control supply. When the combine was first conceived, it was seen that the matter of ; controlling the then supply of the world’s | copper was only a question of money. But it was further observed that the proposed : “corner” would lend to an increased produc- | tion, the limits of which it was difficult to | foretell. Something must bo embodied in tho scheme to prevent such a result. The j conspiratiors hit upon the plan of offering the producers a large bonus as an inducement not to increase the output. Tho syndicate entered into contracts to take all the copper then being mined at rates far above tho market price, bub with the proviso that the production was not to be increased. Thus far the scheme worked to perfection. Prices were enormously advanced, and the consumer had to pay for the rod that whipped his own back. It was the first successful attempt on a large scale, to limit supply, if only the demand could be have been made to hold out, there is no telling tho number of millions there might have been in the rascally combination. But, as we have previously pointed out, the world can get along without copper, and is so nearly doing it that tbo bursting of tho greatest bubble of modern times is near at hand. The syndicate is bound to go all to pieces. But if the article it deals in were more essential to the world’s use than it is the result would be very different. If it had not been possible to cut off the demand, its success would have been perfect. How will it fare with us when a like attempt is made to limit the supply and advance the price of any of the great necessaries of trade, commerce, or of life ? The old common law met the case exactly, and we believe that law has still vitality, but, if not, the sooner the breath of life is breathed into it anew the better. Even the character of its punishments should be revived. The trusts of the period are the menace of the age. Self-protection, which is tho first law of nature, will compel the people to cloths the government with power to confiscate “cornered” wares, and punish the owrors with heavy fines and exposure in the pillory.—Exchange.