Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1905-03-13
TRUSTS AND COMPETITION.

dhA hAihb fNibV hpptt tAp NtbivAlfy Da-
sis of supply and demand and becomes
a strife for determination and thus.
through "a survival Of the httest, " be-
comes monopoly says The Wall Street
Journal
There is dividing line. on one side
OF which competition appears as the
highest good OF mankind, and on the
other side Of which it appears as obi
Gus as war aud tyranny. 1t is this fact
that makes it so difficult for some to
realize that competition may be good
or bad, according to the stage vt which
it has reached and the obiects which IL
seeks. For instance, Gilbert u. Mon
tague 10 The Atlantic Monthly argues
that the growth OF trnsts has not al
tered the economic principles and eth.
ical code OF business competition. So
long as fraud disparagement or co.
ercion is not practiced, he says, free
competition 10y undertaking, factors
agreements and by the other usual
trade methods is sanctioned by the law
Of the land and by ethics
This raises very interesting as we'll
as very practical question, for on the
answer to it depends the status. local
ard moral, Of the great corporations
which we call trusts" New methods
OF competition which between many
houses Of equal strength are benefit
cent and right may become vicious and
immoral when used by one great cor
portion as against many small compet-
itors. That competition which by econ
omics in administration, by the intro
duetion OF new machinery or processes
OF production, is able to cheaper the
cost and lower the price to the consumer
is healthyand legitimate competition.
A competition, however, which leads to
a war OF prices produces demoraiza-
ton alike to consumers and producers
There can be no question Of the right
Of one producer TO undersell another,
provided he can do so by so reducing
the cost Of production as 20 enable him
to earn aprotit 40 the lowered price
but that kind Of competition is very
different from the competition which
is carried on by some OF the great
trusts in order to drive out Of business
the little concerns which are still In
the field against them, IL is one thing
for competitor to reduce the price by
reducing the cost OF production; It is
quite another thing for a concern Of
large capital TO use its superior
strength to exterminate competition
by reducing the price Of its product be-
low the cost OF production Ia the ter
ritory covered by its competitor. That
is not competition; il is simply war
war to the knife" war Of extermina-
tion IL is not competition because it
aims at monopoly Especially odious
is II when a trust Is thus enabled to
undersell ils competitor and drive him
out OF the field, not merely by the
power Of its superior capital, but also
by It's power 10 blackmail the railroads
into giving IL special rates which are
denied TO tie smaller rivals.
There Is something both ethically
aud economically wrong in the act OF
producer selling goods below cost.
Such an act benefits neither business
as a whole nor il the long run the con-
sumers. The consumer gets a tempo
rary benefit nc The expense OF an ulti.
mate dependence upon one source OF
supply. The sale Of products below
,ost means ultimately the extermina.
ton Of every producing agency except
the one which has the longest packet.
book. The survivor OF such contest
then has the whole field TO himself
aud the consumer Is at his mercy.
Il is quite evident therefore, that
he immense changes which have taken
place ia the business OF the world Ia
he past few years have ia measure
produced corresponding change IN
he moral aspect Of business. lt Gel
rue, up to q certain point, that a new
'ode OF ethi,s is established One
article OF this code Is that Il is not
right for a corporation 70 drive ont a
smaller competitor by selling goods IN
HAT competitors field below the cost
II production Such ana act isan act
% coercion and OF war Il means force
Just the same as 10 an armed body had !
attacked The small competitor. des-
.royed bis factory sud driven bis work {
men away And such so set il wrong (