the Standard Oil Company. It was doubtless true that in earlier years it received great favors from the railroads. It is possible that it has received special favors from the railroads at times since, but it has not been proved that such favors in the form of discriminations (except those coming directly from its large capital, which enables it so to locate refineries and supply markets that it has an advantage) have been received to any material extent, if at all, of late years, while it has been proved that its profits have been much greater during these later years than before.

The other advantages claimed for the capitalistic monopoly, in crushing competitors by local cuts in prices, in transportation, and in other ways that are perfectly legal and normal in their nature, however unjust they may be, certainly seem in themselves enough to explain part at any rate of its high profits. Similar experiences are found in the cases of other combinations of lesser note; and yet it ought to be repeated that so far most combinations have overreached and have paid the penalty of trying to secure exorbitant profits. More experience is needed to teach most of them the art of permanent mo

nopoly an art that, when it is learned, will need to be kept under careful control by society.

Even as regards the special discriminating favors that are mentioned by those who believe that there is no such thing as capitalistic monopoly, it might readily enough be claimed that those special favors in themselves are secured only by virtue of the power of large capital, but that would be a technical claim which need not be made.

Possibly the chief influence in the long run in promoting combinations of capital, as well as their most far-reaching effect, is the element of personal ambition which is fostered by monopoly. There can be no doubt that, in the case of the larger industrial combinations, the belief on the part of the managers that a virtual monopoly can be secured, is a powerful element toward bringing about their formation. The pride of power, and the pleasure which comes from the exercise of great power, are in themselves exceedingly attractive to strong men. As one with political aspirations will sacrifice much and take many risks for the sake of securing political preferment in order that he may in this way rule his fellows,

so a successful organizer of business derives keen satisfaction from feeling that he is practically directing alone the destinies of a great people, so far as his one line of business is concerned. Mr. Havemeyer says that his ambition is to refine the sugar of the American people. Mr. Gates says that it was the ambition of the organizers of the American Steel and Wire Company to control the wire output of the world. One cannot say that these ambitions are not as worthy as those of politicians, and as natural. No one can question that these elements of personal satisfaction and pride are most powerful factors in all lines of social intercourse, and this pride could not be gratified in business short of the belief on the part of these men that they can secure a practical monopoly. This ambition will not be gratified by the control of merely a very large business. Napoleon was not content to be the head of a great state. His ambition would brook no rival. May not the ambition of a sugar king or a petroleum magnate well be of like imperial nature, though in a more restricted field?

Connected with this belief in the power of

monopoly within the home market is that of the ability of the great combination to enter new, and especially foreign, markets. Much more capital is required to introduce into a foreign market a special product than would be required for the extension of the sale of that product within one's home country. The power of great capital thus enables the combination to extend its trade as could otherwise not be done, although this power by no means necessarily implies monopoly. The American Tobacco Company has developed a great market in Japan, India, and throughout the Far East. In some instances even, it is said, it has been forced practically to create the taste for tobacco and to break down religious scruples in order to introduce its product. One may question the value to those peoples of this "educated taste "; one cannot question the skill and power needed to accomplish the result. The Standard Oil Company has pushed its products into practically all the markets of the world. In neither case could these industries have so expanded without the possession of very large capital; and this ability to manage the foreign market in conjunction with the home market, is beyond

doubt an advantage of the large organization which the small competitor does not possess. The possession of a secure foreign market gives the large manufacturer still further power in handling the home market, so as to give him a virtual monopoly.

Granting, then, all that can be said with reference to the special advantages that come from legal monopolies and from natural monopolies, it still seems reasonable to believe that without them what must, under the present usage of terms, be called monopoly, does, through the power of capital, exist, temporarily at least; and apparently it may exist permanently, exerting, if it wishes, some if not all of the power exercised by other monopolies, and needing like them the restraining hand of the state through courts and legislatures to prevent abuse. The term 66 capitalistic monopoly " has been given to this kind of business organization, and until a better expression is found, it seems well to make use of that.