INDUSTRIAL COMBINATIONS. it is apparent that in the case of those trusts which have been built up chiefly on tariff benefits, a large part of the net profits shown, and in some cases, two-thirds or three-fourths of the profits, are the direct result of the protective legislation which they have received. Industrial combinations, in the great majority of cases, have been formed primarily for the purpose of controlling or advancing prices to the consumer. While the theory has been persistently urged for many years that the main purpose of combination was to reduce producing and operating costs, and thus increase profits without the advancement of prices, yet the records shown during the entire trust era go to prove that such has not been the case. The great enlargement in profits has for the most part been accomplished by price advances and not by cost curtailment. Never in our history, except perhaps in war periods, has the price level risen faster than it rose during the first few years after the passage of the Dingley Tariff Act in 1897, and during the period when trusts were forming most rapidly. From July 1, 1897, to January 1, 1900, the cost of living advanced 31 per cent. From July 1, 1897, to May 1, 1902, the cost of living advanced 41 339 per cent. That the trusts were largely responsible for this great advance is clear from the fact that from July 1, 1897, to January 1, 1900, the prices of foodstuffs (in which there are but few trusts) advanced but 25 per cent. while the prices of metals, clothing and miscellaneous products (in which there are most trusts) advanced 37 per cent. Notable advances occurred in Steel Trust productions, some of which more than doubled within one or two years. If this process had not taken place, the Steel Trust to-day would doubtless be able to show substantial profits on its original and current investment, but no profit whatever on its "water.''* * E. L. Bogart, The Economic History of the United States (New York, 1907), chap. xxvii.; J. H. Bridge, Inside History of the Carnegie Steel Company (New York, 1903); J. B. Clark, The Control of Trusts (New York, 1912); S. C. T. Dodd, Combinations: their Uses and Abuses, with a History of the Standard Oil Trust (New York, 1894); Chas. R. Flint, Industrial Combinations (New York, 1899); E. Von Halle, Trusts, or Industrial Combinations and Coalitions in the United States (New York, 1895); J. Moody, The Truth About the Trusts (New York, 1904); The Masters of Capital (New York, 1911); and Moody's Analyses of Investments (New York, annual); E. R. A. Seligman, Principles of Economics, (New York, 1909), chap. xxii.; F. C. Howe, Privilege and Democracy in America (New York, 1910); T. Veblen, The Theory of Business Enterprise (New York, 1904); L. F. Post, Social Service (New York, 1911); T. E. Burton, Financial Crises (New York, 1911); F. W. Taussig, Tariff History of United States (New York, 1908). - Social prising portion of our eastern and immigrant population. With a courage and optimism worthy of the high cause upon which they were embarked, they braved the dangers of the wilderness and the horrors of Indian warfare that they might establish homes in this new and golden West. Upon their hardships, their sufferings, their mighty labors, their self-denials upon their very lives, as upon a tragic foundation- rest our fruitful western agriculture, our mining industries, and the wealth and eminence of our stately cities of the West. Agriculture in the West as determined by pioneer migration — Shifting of rural population affected by the law of supply and demand - Increase in rural population in agricultural and other farm products since 1870 — Conditions favoring our agricultural development - Rise in wages of farm labor- The prairies of the Mississippi, the Missouri, and the Red River valleys - The Homestead and the Bonanza farmer Agricultural research and the Department of Agriculture Work of the Bureau of Animal Industry - The application of science to agriculture - The cultivation of plants and the breeding of animals - Coöperation in rural communities Problems of conservation and reclamation Rural educational development and religious advance - Artistic progress. Migration to the great prairies and plains of the West was interrupted at its height by the Civil War. In 1865, recovering from this check, the movement assumed greater force than ever, thousands of courageous men and women seeking the great West in mover wagons, by the onpushing lines of railway, and by water. Those of us who, from the vantage point of our farmsteads in the Middle West, saw the daily passing of those picturesque prairie schooners and wagon trains; who beheld at its height this living flood flinging itself against the barriers of frontier hardship and border warfare, inundating the short-grass plains, overflowing even the natural barrier of the Rockies, and spreading out upon the shores of the Pacific,witnessed indeed a wonderful pageant of American National life. This great continental migration has not ceased even yet, but various facts indicate that the movement is nearing an end. In the first place, for a decade or more the rural population of Iowa has been decreasing. Then, too, the movement into the great plains, the Rocky Mountains, and the far West has projected a great offshoot northwestward into Canadian territory, where hundreds of thousands of people, largely from the Mid apple and peach growing is making certain hilly sections of the Applachian regions more populous. The higher prices of farm products cause New England farmers to revive many of the abandoned farms. There are yearly movements of farmers into newly irrigated areas and newly drained swamp regions. dle West, have gone into Assiniboia, Alberta, and other northwestern territories in the last few years. Finally, many farm people have moved from the prairies of the Middle West to the South and even to the Eastern States. For a time the farmers of the eastern section saw their lands depreciate in value owing to the onrush of food and fibre from the great, easily subdued and cheaply purchased farms of the West, both north and south; but now that the western farms have risen nearly to their normal selling prices, eastern farms are again coming into their own. Henceforth the movement of the farm population from one place to another will largely follow the lines of local profit-making from the land. At present the commercial success of NUMBER OF PERSONS (Male and Female) 10 YEARS OLD and Over Engaged in AgriCULTURE IN THE UNITED STATES IN 1870, 1880, 1890* AND 1900†. Easy methods of transportation, a universal distribution of information, a uniform language, much travel on business or pleasure, and habits of migration,- all these make the people move readily from areas oversupplied with farmers to such as promise better and more permanent profits. The following tabular statement gives the increase of rural population by States since 1870, as shown by the United States census: NUMBER OF PERSONS (MALE AND FEMALE) 10 YEARS OLD AND OVER ENGAGED IN AGRICULTURE IN THE UNITED STATES IN 1870, 1880, 1890* AND 1900†- Continued. AREA, PRODUCTION AND VALUE OF CROPS INDICATED, 1866 AND 1910, WITH INCREASE (+) OR DECREASE ( Corn. Wheat. Oats. Rye. 8,864,219 268,141,077 94,057,945 37,548,000 1,186,341,000 Acres Bushels Dollars +483,121,094| +918,199,923 Bushels Dollars Acres Bushels Dollars +973,366,170 561,051,000 +30,256,504 +328,941,370 408,388,000+28,683,781 +314,330,055 2,185,000 34,897,000 Barley. 492,532 11,283,807 7,916,342 17,598,000 3,720,000 349,032,000 24,953,000 +636,967 100,426,000 +7,250,468 11,636,000 -185,624 194,566,000 +2,650,619 Hay.. 17,668,904 121,778,627 220,835,771 51,015,000 $69,378,000 842,252,000 +33,346,096 +47,599,373 +621,416,229 * Engaged in agriculture, fisheries and mining. † Engaged in agricultural pursuits. Tons. AGRICULTURE. 343 The increase in the production of fruit crops, also live stock, dairy, poultry, and forest products from 1870 to 1900, is shown in the next table. ORCHARD PRODUCTS, LIVE STOCK, DAIRY PRODUCTS, POULTRY AND FOREST PRODUCTS IN THE UNITED STATES, BY DECADES, 1870-1910, AS COMPILED FROM CENSUS REPORTS. During the last third of the Nineteenth century the combination of cheap, new lands, of agricultural machinery propelled by horses and motors, of railway transportation, and of a vigorous pioneer population, pushed the production of farm products beyond the demands of even a rapidly increasing city and manufacturing population. This kept the level of farm prices relatively very low. But manufactures steadily increased, the cities kept on growing, the foreign demand for our farm products continued unabated, all at an increased speed which a settled agriculture could not maintain; with the result that for a decade prices have gone up to what seems to be a permanently higher level. The logical result was that land began to rise rapidly in value in the producing regions of the Middle West. This tendency to an increased valuation of lands has spread to the South, to the great plains, to the Far West, as well as to the Eastern States. + No data. $140,867,347 199,501,108 $4,760,060,093 1,939,947,444 295,880, 190 $195,306,283 Another matter profoundly affecting the prices of farm products was the rapid development of manufacturing, transportation, merchandising, and other non-agricultural industries. The profits in these lines of trade made the payment of higher wages possible. The cities and manufacturing centers, therefore, drew upon the rural commuities for workers. This in turn reacted upon the price of farm labor, which is now almost double that of the preceding generation. Henceforth those who consume farm products must pay interest on high valuations of farm lands and for highpriced farm labor, as well as farmers' profits comparable to those accruing in other lines of industrial and professional work. It may be assumed, therefore, that we are in a permanent period of higher prices for farm products. Of course there will be fluctuations, but these will be at a higher average level. Almost as enticing as the gold fields of California were the rich prairies of |