Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-01-07
KNOX ON TRUSTS.
CONTINUED from page ~


enormous cost of the sources or supply
represented in high capitalization.
This Capitalization, in almost every
case of holding company, represents
far more than the aggregate intrinsic
value of its constituent companies. The
method of computing values for pur-
pose of concentration has invariably
been upon earning power, and rebates
have Frequently swelled earnings so
tina enormous volumes of capital stock
represent no unfair advantage obtained
over rivals.
.The situation is much improved in
respect to transportation discrimina-
tions within the last two years. This
is the result, first, or determined eff
feet upon the part OF the government
to apply existing laws in an effective
way against discrimination; and, sec
ond, to the fact that some of the high
err minded railroad managers of the
country have eXerted their large in
fluence in the direction of equitable
dealing with shippers of the territory
which they serve. Whether it is the
consequence of those influences or
mere coincidence, it Is nevertheless
stated on high authority to be fact
that the emnarkation of new capital in
new enterprises in competition with
the supposedly controlled industries
within the period named, probably
equals the capital of trusts. The eff
feet of certain kinds of protection
against predatory competition can be
safely prophesied to increase this
figure.
1.-The country is filled with men
whose lives have been devoted to in
dustry, who have developed and made
profitable the properties now possessed
blythe trusts at prices far in excess of
the cost of modernized duplicate who
will not long remain idle when assured
that their capital and experience can
be securely employed in the business
in which they were trained.
"Too much has been conceded in
public discussion to the trusts in this
respect. Organizations in ont state to
control production in other states of
commodities consumed in all the states
are as a rule devices of shrewd men to
capitalize for their own benefit the
countrys prosperity. They are hegot-
ten in prosperous times. Poor times
offer no inducements. They are essen
tally different from the combinations
effected by producers, of their own mo-
ton. fer economic reasons. Those
which have been recklessly conceived
contain within themselves the germ OF
their own undoing." y
They have as rule, only acquired
the ownership of the stocks of the in
iph hn1 l.
ready attained their gigantic stature.
Their existence does not increase the
productive capacity of the country,
except as high prices of products have
stimulated competition nor have they
become of their existence increased
demand. as the demand for products
has never been thought to depend upon
the title to capital stocks of produc-
ing companies.
Following is an abstract of the at
torney generals recommendations re-
garding trusts and combinations given
at the White House, tonight. 1t repre-
sents the, general attitude of the adj
ministration on this subject and was
authorized by the President.
RECOMMENDATIONS FOR IMME-
DATE LEGISLATION.
That all discriminatory practices af-
fectng interstate trade be made Of
fences to be enjoined and punished.
Such legislation to be directed alike
against those who give and those who
receive illegal advantages and to
cover discrimination in prices as
against competitors in particular To-
calities. resorted to for the purpose of
destroying competition.
In order to reach producers guilty
of these offences who are, as producers
merely, beyond national control,
penalty should be imposed upon the
interstate and foreign transportation
of goods produced by them and federal
courts should be given power to. re-
strain such transportation at the gov
ernment's suit.
Such legislation is necessary be-
cause the existing interstate commerce
law does not give an effective remedy
in this class of cases against either
shipper or carrier.
The Casus Omissus in the interstate
commerce act should now be supplied
by imposing a penalty upon carrier
and beneficiary alike and by giving
| to the courts the right to restrain all
such attractions of the law.
The prohibition against carriers
should be limited to those subject to
| the act TO regulate commerce. Only
carriers operating line of railroad or
| Il rail and water line as one line are re-
| quired to publish their rates and adj
| here to them. 1t is impracticable to
control lines operat ting wholly by water.