The labor world. [volume] (Duluth, Minn.) 1896-current, 1902-09-27
PHASES or TRUSTS
HOW TO DEAL WITH COMPETITION
IN ITS SEVERAL FORMS.
Three Plans Are Suggested t0Stimu-
late Competition-Objec IL Al
10 Made to Competition. and Pub
lie Ownership and Control In Sug-
to the Trust Evil.
BY ]. B. Smiley.

Experience teaches that when an in
dividual or a corporation has undisput-
Cd control in any field Of industry, the
tendency is to seek to enrich itself at
the expense Of the public. To correct
this evil, which becomes an oppres-
sion and a serious evil needing correc-
ton, three different methods are some
times advocated. The first is known
as competition. It proposes to start
out number of competitors, asserting
that in the wild, painless, reckless
scramble for business which will fol-
low, prices will be forced down to the
lowest point consistent with fairness,
and that in the end justice will be done
to all parties. The second method pro-
poses to apply to outside force. in the
form Of law, and compel the OFFENDING
party to supply the wants Of the pub
lie at what the law makers consider
fair price. The third plan is for the
whole people to own the enterprise and
run it for the benefit of all. I think
the reader will recognize that under
these three heads may be placed near
ly all the various methods proposed.
The objection to competition is that
even accepting the best possible phase
Of it, it involves a fearful waste OF en-
erey. I have illustrated this by cit
ing the milk business, but the principle
applies equally in every other line. The
objection to the second method, that
of trying to apply outside force,
through the law, is, that even II 1t
could compel men to compete instead
of combining and cooperating when
they wished to do so, it would Simply
seek to force a wasteful method on to
the community. Also this method sets
the victim against the law, and ne
tries to evade it by resorting to bril-
berry or adroit, indirect subterfuges.
Bribery and subterfuges mean corrupt
ing influences which have demoraliz-
ing effect on the public. The effort to
regulate the railroads by the inter-
state commerce commission, is an at
tempt to adopt this method. 1t is at
best a mere makeshift. If not fiat
failure it is certainly anything but a
brilliant success, and no one knows
this better than the people 1t feebly
and Intellectually tries to coerce.
The third method is for the public
to own and operate the enterprise for
the public good, as with the postoffice
and public schools. This method avoids
the inevitable waste Of the wild COM
petitive scramble. 1t avoids the evils
inseparable from having two antagon-
istic parties. one trying to coerce and
the other to evade. 1t gives the people
mquestioned control, and entities them
to all the benefits which the enterprise
can be made to-yield them. And so far
as the hard working actual wealth pro-
ducers are concerned, it is the only
method which offers any hope of re-
Loving them from the drain on their
energies caused by rent, interest and
profits The most that public control
proposes tc do is to lessen somewhat,
but not remove the burdens. A COM
promise measure of this kind is often
advocated by those who seek by this
means 70 stave off a more effective
remedy.