The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-09-17
TUESDAY. SEPTEMBER Il. 1907.
Mr.. knapp,s view Of Combination.

Chairman Knapp, Of the Interstate Com
merce Commission, talks a good deal like
a socialist when he tells railroad men, as
he did in Chicago on Saturday last. that
the maxim. Competition is the life Of
trade, is an exploded one. and that
il seems 20 him impossible that self
lshness and greed are 10 remain the
main force and bottom fact of So
ciety." Combinations IN trade. in
dustry. and transportation are 10 his
mind the inevitable and even desir-
able consequences Of the economic
revolution which is taking place They
are the great necessity Of the times.
made so by the stress OF competition,
which a law was passed 20 preserve"
The law to which Mr.. Knapp here refers
is the sO-called sherman antitrust law.
which he denounces as the most mis-
chievous and mistaken legislation in the
history Of our country"
The logical inference from these ex-
pressions is that the chairman Of the
commerce commission is not in favor Of
enforcing Il law so uischievous in char
acter and results II this inference be
justified it explains why the commission
is not going TO proceed against Mr.. Har-
riman's roads. certain Of which, according
10 the commissions own report. are VIC
lating the Sherman law by operating in
combination instead Of competitively.
Probably this is the wisest course TO
pursue. inasmuCh as the administration
policy toward railway concentration and
combination is not clearly defined. and
no public interest can be subsevved by
breaking up railroad combinations unless
they can be shown 10 be oppressive 10
shippers and travellers. But while the
hand Of the administration appears 10 De
stayed as far as railroad combinations
are concerned. attempt is being made to
enforce the Sherman law against indus
trial combinations The inconsistency of
this course may, perhaps, be explained
on the theory that railroads are natural
mOnOpolies, which can be regulated by
law in the public interest. while industrial
combinations are artificial monOpOlies
the evil tendencies Of which may be
checked by restoring and maintaining
competitive conditions OF trade and in
dustry. Railroad monopoly controlled by
law, industrial monopoly restrained by
competition, would seem TO be the eco
monte conditions the administration is
aiming 10 bring about
Mr.. Knapp represents President Roose-
welt as the only man who has dared TO
tell the people Of the ''nefaTious char
acter" Of the antitrust law and 10 point
out its ''blghung effects" The President
however. in his PrOvincet0wn address
referred 10 the Sherman law as having
allied a useful place" and he declared
that its principle. so far as 1t prohibits
combinations which, because of their
extent or Of their character, are harmful
TO the public. must always be preserved. -
Mr.. Roosevelt. as is well known. favors
railroad combinations and agreements un-
der the approval and supervision of the
government, but he still sticks 20 the
idea that there is some virtue in the Sher-
man law as applicable TO industrial COM
binations. Evidently the President has
not drifted so fast with the flowing tide
Of the economic revolution as the chair
man Of the Interstate Commerce Commits
sion.