Los Angeles herald., 1908-08-26


If such an act is now unlawful, why
is he so frightened at a plan which
gives to the small competitor this very
protection? The trouble with the pres
ent law is that it does not restrain the
evils at which 1t is aimed. The plan
proposed in the Democratic platform
brings the corporation under the sur
veillance of the government when II
has reached the danger point, and
thereafter subjects it to federal scru-
tiny. The present law simply prohib-
its 1t in an indefinite sort of way, and
then leaves the officers of the law to
scour the country and hunt up viola
tions of the laws provisions. Mr.. Taft
Is unduly alarmed at this proposal, or
else he entirely fails to comprehend the
details of the plan. He says;
Calls 1t soeiaIistic
ITO supervise the business of corpo-
rations in such way as to fix the price
of commodities and compel the sale at
such price is as absurd and Socialistic
a plank as was ever inserted in DEM
ocratic platform
And yet this sentence is found in the
same paragraph with the sentence
above quoted, in which he declares that
1t is even now a violation of the Sher-
| man antitrust law for o corporation
to attempt to destroy competitor by
selling at a low and improbable price
| where 1t has competition, and at an
exorbitant price where it has no COM
petition. In what respect is our plan
more socialistic than the plan which
| Mr. Taft indorseS? Merely in the fact
that ours can be enforced. According
to Mr.. Taft's logic. plan is not So
cialistic which is not effective, but the
same would be socialistic If made ef-
fective. Why should a corporation
supplying 2O,0OU,VOO of people-for
| corporation controlling 25 per cent of
the total product supplies one-fourth
or more, of our opulation--should
such a corporation be permitted to sell
at one price in one part of the country
and at another price in another part?
| What reason can a corporation have
for such discrimination? Prices are
not made as a matter of favor; when
g. big corporation sells to the people
of one section at one price and the
people of another section at another
price-the cost of transportation being
taken into consideration-there is a
reason for it, and in almost every case
the reason is to be found in the effort
to destroy a competitor. One of the
most familiar methods of the trust is
to undersell a small competitor in the
small competitors territory-the price
being maintained elsewhere-until the
small competitor is driven into bank
ruptcy, and then the price is raised.
| That has been done over and over
again. 1t is open and notorious; and
yet, with the Republican party in COM
plete power at Washington, what ef-
fort has been made to prevent this?
This remedy, although vehemently de-
nounced by Mr.. Taft, will appeal to
the average man as not only very salu-
tary, but very necessary.
From an economic standpoint, a
monopoly is Objectionable. The
moment a corporation secures a prac-
tical monopoly in the production or
sale of any article certain evils appear
which outweigh any good that can
come from large production or control.
Wherever private monopolies exist
certain irresistible tendencies manifest
themselves. First, 1t raises prices-this
is the first thing thought Of for the in
creasing of profits. Then, in proper
ton as it becomes the only purchaser
of the raw material, it reduces the
price of the raw material, and the
producer of that raw material hav-
ing no other market, must accept the
price offered. In this way, too, the
profits of the corporation are in
creased. Third, a reduction in the
quality of the product affords an op-
portunity for increasing profits.
Fourth, reduction in wages follows
wherever conditions win permit.
Helps Wage Farmers
Competition protects the purchaser,
for when a number of independent
producers stand ready to supply him
| with what he needs he can choose be-
tween them and buy from the one
who offers the best product at the
lowest price. He is also protected in
| quality, because those who compete for
the opportunity to sell him must show
either advantage in price or advar-
tage in quality. Competition protects
| the man who produces raw material,
for when there are number of bid
| ders for that which is being sold he
| can accept the highest price offered.
! Competition also helps the wage
Garner, for his skill is the finished
product which he offers upon the mar
ket and where number of indepen-
dent industries are endeavoring to se-
| cure the highest skill the skilled la
| borer has the best assurance of OBJ
| tanning a fair recompense; when there
| is but one employer the ernploye must
take the price offered. because he will
lose the advantage of his experience II
he must go out to find different kind
| of employment.
The business men of the country
| have felt the pressure Of the trusts.
The retailer has been compelled to en-
| ter into contracts which restrict his
management of his own affairs. he has
\ found the terms Of sale and payment
changed to his disadvantage and he
| has been forced to carry more and
more of the risks of trade. He is con-
WINGED that there are no good trusts
| and that his only safety is in the DEM
ocratic plan which lays the AK at the
root of the tree.
The travelling men naturally take es-
| pecial interest in the trust question,
because the more complete the mono
poly secured by a corporation the loss
| they are needed. We have no more
| Intelligent class than the representa-
| tives of commerce, and their retirement
| from the road would mean a serious
| loss to the country while a few pro-
moters would be the only persons
benefited they gaining by the capital
ization of the salaries saved by the
elimination of competition.
The Democratic party is the de-
fender of competition and the only
great party which Is seeking to restore
competition. Mr.. TAFT has, in the
discussion of this question, employed
harsh words instead of argument. The
word "socialistic" is hurled at the
Democratic party and the Democratic
platform. Now, as q matter of fact, 1t
is Mr. Taft's party and not the Dem
ocratic party which has given enccur-
agement to Socialism. While profess
ing to abhor Socialism, the Republi-
can party has gone half way toward
Socialism in indorsing its fundamental
principle. The Socialist bases his con-
tention on the theory that competition
Is bad, and that an economic advance
is to be found in monopoly. The So
claSist, however, wants the public t.
have the benefit of the monopoly and,
therefore, favors government owners