Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1905-03-10
TRUSTS AND COMPETITION.

There Is a point where competition
ceases to be blessing and becomes an
evil, where it ceases to be right and
becomes vice, where II ceases to be
the life Of trade, promoting enterprise
and fixing value upon the economic ba-
sis of supply and demand, and becomes
3 strife for determination and thus,
through "a survival of the fittest, be-
comes monopoly, says The Wall Street
Journal.
There Is q dividing line, on one side
Of which competition appears as the
highest good OF mankind, and on the
other side OF which il appears as obi.
Qua as war and tyranny, II is this fact
that makes II 80 difficult for some TO
realize that competition may be good |
or bad, according to the stage at which
il has reached and the objects which It
seeks. For instance, Gilbert H. Mon.
tsgue In The Atlantic Monthly argues
that the growth Of trusts has not al
tered the economic principles and eth
zeal 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 well
as very practical question, for on the
answer to II depends the status, local
and moral, Of the great corporations
which we call trusts" New methods
OF competition which between many
houses Of equal strength are bened-
cent and right may become vicious and
immoral when used by one great cor
portion as against many small compet-
tore That competition which by econ
omics in administration, by the intro
duction OF new machinery or processes
Of production, Is able TO cheaper the
cost and lower the price to theeonsumer
lisa healthy and legitimate competition,
A competition, however, which leads to
war OF prices produces demoraliza-
tion alike to consumers and producers,
There can be no question of the right
Of one producer TO undersell another,
provided ne can do so by so reducing
the cost Of production as 20 enable him
TO earn profit &C the lowered price
bat 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 a competitor to reduce the price by
reducing the cost OF production; it is
quite another thing for concern Of
large capital to use its superior
strength TO exterminste competition
by reducing the price Of ia product be-
low the cost OF production ia the ter
ritory covered by les competitor. That
is not competition; it Is simply war
war TO the knife, war OF extermina.
ton. Il is not competition because il
aims at monopoly, Especially odious
is il when trust is thus enabled TO
undersell is competitor and drive him
out OF The field, not merely by the
power OF It's superior capital, but also
10y its power to blackmail lhe railroads
INFO giving 10 special rates which are
denied 40 i,s sualler rivals
There is something both elhieslly
and economically wrong Ia thc sct o, a
producer selling goods below cost.
such sn gct benefits neither business
asa whole nlr in the long ron tle con.
sumem. Ihe consumer eots a tempo.
rary benefit 80 The expense OF au uiti-