Omaha daily bee., 1902-04-06

retain some of the socialistic ideas by per-
hitting the trusts to exist independent Of
the government, but TO deprive them of
some of their full power and operation by
writing their price lists.
Price Fixing Must Fail.
1t seems to me that If such a system can
be imagined, it must fail for sew
eral reasons. Who is to compose
this government whose agencies will
fix prices? If we can imagine all in
dustries, each organized into its respective
trust, with all its force OF managers, its
holders of its invested capital and all its
army Of employees. as composing one side
Of the political controversy which results
in the selection OF a government, and the
great mass of consumers on the other hand
endeavoring to control the government and
check the exactions of the trust. is there
not every reason to believe that the trusts
are more apt to control the government,
which has such powers conceded to Il. than
that the consumers are likely to establish
a government which can control the trusts ?
Upon the other hand, IL we can imagine
a public Of consumers. not themselves par
ticipating in the dividends or the wages
Of the trusts, and strong enough to take
possession Of the agencies of government.
NOulu hOl INA BONcIhLnCul Just 70 udtu-
rally and Just as selishly. as the trusts
would do in the contrary case. reduce the
prices to a point where the trusts could
neither pay dividends on capital nor wages
to employees? The attempt to fix prices by
law is crude, unscientihc. unnatural and
unreasonable. And there is nothing in his
tory and nothing in past conditions which
j~ustihes the superstition that this system
could ever be made to work. l have pur-
posely refrained from discussing the COM
binations Of capital and relations between
producers and consumers which exists in
the case, for instance. Of public service
corporations furnishing facilities to the
inhabitants Of a municipality. In such
cases the statute and the ordinances very
often fix the rate. but that is not a case OF
a government debating prices to the pro-
ducers OF a commodity. 1t is rather a mat
ter Of bargain and barter between the
public service corporations on the one
hand and the people Of the municipality
through their city government OF the
other, and is. in fact. a part Of the play
of the natural forces. which may be the
solution Of this entire question OF price.
Natural Influences at Work.
Opposed to those who believe that the
government will Ak the price of the trusts
products are those who hold that there are
natural laws inhering In the growth Of the
trusts and that there will result the opera
ton OF natural conditions which will work
out the problem.
There are many grounds for believing
that this will be the solution Of the ques-
ton. Even II the trust entirely controls
the market, there are many reasons to be-
lieve that its power to exact high prices Is
not unlimited. 1t is well known that as the
price increases the demand and consump-
tion decreases and the first effect of an in
crease in price is TO lessen the sales OF a
product. and yet the margin Of proht may
depend upon the quantity Of sales. There
is, OF course, a point at which the product
can be most probably put upon the market
and the tendency will be to vary above and
below this from time TO time and probably
approach a condition Of stable equilibrium
conforming to the conditions OF demand
from time to time. And another important
element which will enter into the control
OF prices is the fear hat an effort on the
part OF the trust to maintain excessive
prices will provoke and bring about COM
petition. In the same way. although the
civilized nations Of the present time do not
engage in war with each other, yet the ablI-
ity OF each 10 wage an effective warfare
maintains the peace OF nations. So, al
though competition will cease. yet for a
period the possibility OF it's renewal win
tend to control prices. But It seems to me
that the most important factor which will
enter into the solution Of this portion OF
the question Is the influence Of public
opinion. not merely as expressed In
destinations and editorials, but as b ought