The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-12-31
%SpnHighl


ny Tar the most intelligent, cOmprehen-
siNe and able presentation of the problem
Of monopoly, recently so greatly intensi-
fed by the trust organizations, which re-
cent discussion has produced, is that
made by Prof. Richard T. Ely, of the
Wisconsin university in an address de-
hvered at the meeting of the Washing
ton Economic association. Prof. Ely's
position as an advanced and Independent
thinker on social and economic problems
may be regarded as pre-eminent among
American scholars. He has proven his
fearlessness in dealing with grave ques-
lions involving the general we'll being,
and has no shadow of suspicion attaching
to him by association or otherwise Of
being engaged IN, the propagation of views
which may be regarded as acceptable to
any, special class IN industrial or social
Hfe~aaitb;er. Yze. Aaf sr
With the utmost cIearness Prof Ely
directs, attention to the false view, now so
prevalent, that Industrial organization
and concentration of itself is dangerous
to the general welfare. In this behalf
Prof. Ely, after pointing out that the
trust difficulty resolves itself into three
problems first of all and chiefly monop-
oily problem, secondly problem of con-
centration of production, and thirdly a
problem of wealth concentration, proceeds
to say:
Concentration of production has its own
problems, but they may cOeXist with the
keenest competition, as it usually does in
both the cases have mentioned. Large
scale production, when it comes about as
a result of the free play of economic
forces, is justified by its efficiency. When
1t is able to maintain itself in fair
Held. without faVors, it gives large re-
turn for expenditures of capital power
and human labor power. 1t adds thus to
the provision for human comfort and
should be no more autagoniZed than ma
chinery should be. The real problem is
to utilize it fully while reducing to a
of the evils which large scale production
originally brought have already been nit
tg8ted by humane legislation which has
regulated conditions of employment.
1t is with the monopoly aspect of this
three-sided problem that the address
chiefly deals. The speaker assumes as
settled by experience that the competitive
order In industrial life has been seriously
disturbed by the conditions called into ex-
tstence by the trust organizations. He
calls attention to the fact that the power
Of monopoly shows itself in other direc-
lions than merely the power to raise
prices. 1t involves the Withholding cf
supplies or services and the furnishing
Of them irregularly. 1t enables secret
combinations to aid one another with
1,
In mOnOpolistic prices, making, frequent
~. but little difference in the end sought,
whether prices are thus raised or low
cred
The following new law of monopoly
price has been formulated by Prof Ely:
"Other things being equal, the greater
the intensity Of GUS omary use, the high
er the general average of economic well
being, and the more readily wealth is
generally expended. the higher the mo-
nopoly charge which will yield the larg-
est net returns" 1t is in large measure
because Of the higher average of we'll
being among the American people that
the trust monopolists have been able sue
cessfully to exact with impunity the high
est prices which the traffic will bear"
When an American community or indi-
vidual want anything they want it real
bad. and they are. accordingly, ready to
pay the maximum price for it rather than
go without. In this circumstance will
be found, We believe, the explanation Of
the general failure which has prevailed
thus far on the part of this people to
wake to anything like a full realization
Of the dangers which have come unon
them through the trust movement. But
the end will come some day; and the
probability is very strong that It will be
brought about only through the most
convincing proof which an aroused pub
lie opinion can furnish that the public
and private robbery which is now the
chief feature of the progress of Industrial
concentration must come to an end.
The remedies which Prof Ely offers
for the trust monopoly problem will ap-
pear at first sight to be far from radical.
He would secure such a reform Of exist
ing patent laws as would prevent those
laws from being made the instruments
Of perpetuating monopoly, as they are
today in large measure. He would regu-
late the law Of private corporations. al
though in nowise interfering with the
principle Of cooperation which, in opera
ton now, permits persons of the small
est means to participate in the profits OF
the largest enterprises. He would pro-
mote the wide diffusion of wealth through
reforms in the laws of inheritance He
would have taken up earnestly the prob