Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-03-01

raise prices above competitive rates to the
great detriment of the public
l. Speculation and overca pit alization
other evil often charged against these new
er combinations is that the promoter by
virtue of misrepresentation or by the con-
cealment % material facts, is frequently
able to secure very large profits for himself
al the expense of the people at large who
buy the stock, and tha.t in this way undue
speculation is encouraged
Connected with this evil which comes
with the modern method of promotion is
mat of overcapitalization. Stock is fire.
quently issued to four or five or even
more, times the amount of the cash valra
OF me plants that are brought into the
combinations These stocks then placed
upon the market go into the hands of per-
sons ignorant of the real value of the prop
erty, who afterward are likely to lose heav-
NY Pools are sometimes made to control
the stock market. or other of the common
ways OF disposing of the stock by unfair
methods are employed.
At times also the officers and directors of
the large combina lions seem to have taken
advantage of their inside knowledge of the
business to speculate the stock ex-
change in their own securities to the great
detr1ment of the other shareholders
.. Freight determinations -AmonP tba
chief evils mentioned are those of freight
determinations in favor of the large com
panies, which many assert are the chief
cause Tor the growth of the great combina-
tons
q. Monopoly; its social effects-The fact
mat an organization possesses practical
monopoly and can in that way direct its
operations at the expense of its rivals
thereby preventing competitors from COM
ing into the field, it is thought, takes away
from the individual initiative of business
men and prevents particularly the Younger
men from going into business independents
ly. The formerly independent heads of es-
tablishments entering the combinations are
also, IL Is said, reduced to the position of
hired subordinates. BY these means wit
nesses claim, the trusts are in reality san
ping the courage and power of initiative
of perhaps the most active and Influential
men in the community. This evil is denied
by many of the members of the large cor
poratfons, who think that within these cor
porations are found opportunities for the
exercise of judgment and enterprise and
for rising in life which do not exist outside,
Suggested Remedies.
l. Let-alone polcy-Several of the Wit
nesses are of the opinion that any evils con-
nected with the industrial combinations will
be remedied in the ordinary course of bust
ness, ana that any attempt at regulation by
law would be likely to result in more harm
imam good Competition, either active or
potential. is believed by these witnesses to
be sufficient preventive of MONOPOLY and
eXtorti onate prices. while stockholders and
investors are believed to be already sufi-
GENTLY protected by statute and common
law, especially in view of the fact that the
Stdtc tdilIlOl 10 these persons i'm
munity from carelessness and ignorance on
their own part. 1t is also urged that under
the common law alone the courts have al
ways held as illegal any monopoly or COM
plnauoa distinctly shown to be in restraint
of trade.
While making this general expression of
opinion. some of these witnesses afterward
admitted that certain measures tending To-
ward giving the public. and particularly the
stockholders, more Information regardine
the nature of the business might be advis-
able.
=. Direct suppression of monopolistic cono
binations.-A few witnesses are inclined To
laFor the more general enactment of stat
utes along the lines of those already adopt
ed by nj merous states, directly prohibiting
the transaction of business by comhina
tons seeking to restrain trade or to control
prices Some witnesses believe that the
present statutes. in regard to the states
where they have been enacted, I'm coniunc-
uun with the national antitrust ,aw OF
1890. and the Interstate commerce law
would, if vigorously enforced be All the
necessary.
Perhaps a greater number of witnesses
however, directly expressed themselves as
opposed to so-called 'anti-trust'' legislation,
while others distinctly imply similar on
position. These witnesses, Including some
opponents of individual combinations as
we'll as lawyers, hold that combination is a
natural outgrowth of modern conditions
and that it is practically impossible TO sun
press it. If any Legislation is needed il
shoNld be in the form of regulation and
only.
g. Prohibition of destructive connection
Two or three witnesses testifyfng in oppo-
sition to the Standard OIL COMPANY adyo-
cate legislation to prohibit Destructive
The witnesses have in mind
especially the cutting of prices in local
markets. while retaining them at high fig
ures in other parts of the country A re-
quirement That, freight rates being consid-
cred. prices should be made uniform in All
markets is advocated. 1t is also suggested
that general cutting of prices below actual
cost of production for the purpose of driv-
ing out competitors should perhaps be
prohibited. No criticism upon these sug-
gestions is offered directly by other wits
U,nr.in,ed ON Thirte.nth p.p.N