New-York tribune., 1906-07-03
SUPPLY AND DEMAND AGAIN.

The time-old problem of supply and demand
Is brought to the fore again by our indispen-
sable. friend the iceman. 1t is intimated that
there will be shortage :n the local supply this
year. More dependence than usual will have to
be placed arti1cially manufactured ice and
on ice imported from distant places In such
ways doubtless enough ice will be provided to
supply the demand. But it has been reported
that some purveyors are thinking of trying to
take advantage of the situation to increase ex-
brilliantly the price of this needfuI commodity
People must have ice no matter show much
they have to pay for it, at least up to certain
point; and so the idea is to put the price up to
the highest figure that greed can extOrt from
necessity.
Let us say frankly that we do not believe this
will be done, for various reasons. If it were
attempted, we do not believe it would succeed.
In order TO succeed it would have to be done by
a combination Of all or most of the dealers, and
there are some object lessons before the public
eye just now which should have a restraining
influence upon the rapaciously inclined. In
Ohio under state statutes some icemen are
being fined and imprisoned and in Philadel-
phia shrewd District Attorney has invoked
the good old common law against others of the
trade who have conspired to increase prices.
But the fact that even few men are consider
ing it, or are wishing they could do it, raises
again the question Of regulating prices by such
an application of the law Of supply and demand.
A perverted application, most men will doubtless
say. of such a suggestion as that which we have
cited, and it is. 1t would obviously be an in
iQuitous thing for some man to secure control
OF the entire supply Of some necessary Of life
and then to charge extOrtionate prices for it.
But the iniquity in so fiagrant case, while it is
so much more obvious may be no more real
than that In some case which is so inconspicuous
as TO escape general observation. The difference
may be in degree only, and not in kind.
1t was TO prevent such perversion of the law
Of supply and demand that statutes against
usury were made-money being a necessity that
in some circumstances easily "cornered.'
To the same end railroad fares and prices Of
gas are regulated by law. Such control is
recognized legitimate over all supplies pro-
vided by virtue Of public franchises. In the
case Of private purveyOrs il is otherwise, tech
nically and legally. That there is any moral
difference, however, is not convincingly appar-
ent Indeed, in the case OF money lending, the
same rule is legally applied to private as 10
public purveyOrs. Then, the question may be
asked If the law can restrain man from get
ting more than certain percentage Of profit on
money lending, might II not similarly prescribe
the maximum profits on any other business?
II would doubtless be extreme measure
Tor the law 10 make such prescription in all
cases-to declare what profit the mercer might
make on his cloth and the farmer on his wheat
and potatoes. That would be as extreme as for
the icemen TO put prices up to, say, 10 cents a
pound. We do not suppose there is danger OF
either. But consideration OF them is not alto
gether academic and theoretical for the surest
way of avoiding extremes is I'm cuItivating and
perfecting the mean. The best safeguards
against extortionGte prices are TO be found in
maintaining freedom of competition and in hold
ing In reserve as a possible last resort the law
OF public welfare. The best assurance against
excessive legal control Of industries lies in
avoiding prOvOcation for such interference, in
recognizing and acting upon the principle that
under the general law Of supply and demand,
prices are 10 be fixed upon the basis Of fair and
reasonable profit, and hot upon that Of the
gency OF need and the ability OK need TO meet