The La Jara chronicle., 1908-10-02
Impracticable Democratic PROPOSE
tiop for Trust Control.
cspvincing Exposition of Fallacy Of
Bryan's Panacea for Solving
Problems of Modern
Business.
tFrom Gov. Hughes Youngstown
speech.l

htlNtS VI
Again the magician Of 1896 waves his
wand. At stroke difficulties disap-
pear and the complex problems OF mod
ern business are forgotten in the fas-
cination Of the simple panacea. And,
as the free coinage OF silver in the
ratio of Ii to ! was to destroy the
curse of gold. SO the new found specific
of equal perfection is to remove the
curse Of industrial oppression. The de
lusion Of 1908 is comparable only to
that Of twelve years ago.
The first suggestion is that the law
should prevent duplication of di-
rectors among competing corporations.
However advisable II may be TO have
independent directorates Of competing
CORPORATIONS. IL would seem still more
important TO have independent stock
holders, for a majority OF the stock
holders of corporation choose the di-
rectors II law We're passed pre-
venting the duplication Of directors it
would easily be evaded in the selection
OF men who would represent the same
interests. The most ordinary exper-
ience shows that IT is not necessary 10
serve on Il board of directors in order
TO control its proceedings. Whatever
the advantage of such a law as is pro-
posed. il hardly rises to the dignity Of
a remedy" or yindicates its title to a
place In an imposing scheme of reform
outlined in a national platform. i
But the more important proposal Is
THAT any manufacturing or trading
corporation engaged in Interstate com
merce shall be required to take out a
federal license before IL shall be per-
mitted to control az much as - per
cent Of the product in which it deals"
A license is permission, and the object
of the remedy is not to regulate large
businesses, but to destroy trusts. Hence
the supposed efficiency Of the plan is to
be found in the prohibition Of the con
trol by any such corporation ''of more
than 30 per cent Of the total amount Of
my product consumed in the United
States This is another deusion OF
ratio.
1t might he interesting to inquire
what is the meaning of ANY product
consumed in the United States" Does
II refer TO class of commodities?
And, If so. how shall the classes be de |
fined? or does it refer to each scpa-
rate article of commerce? And. If so, /
what account does this proposal take
of the skill and initiative of manufac-
turers who have built up a more or
less exclusive trade in particular ar
ticles, often protected by trademarks,
although in most active competition
with other articles designed for the
nd In, rb.
same market? In IA desire to correct
the evils OF business are we to place
nm embargo upon honest endeavor
whose activities present none Of the
abuses requiring remedies? And IL
not, what statutory definitions shall be
found to be adequate and just if we
lay down our prohibition in terms OF
volume or ratio Of business and not in
terms of right and wrong: If we
adopt Mr.. Bryan's proposal, to what pc
riod of production is the prohibition
10 apply? Is the excess for "A day or
for month to be considered? Or is
the average production for year TO he
taken; And what system shall be de-
yised by which suitable information
may be furnished in the nature of dam
ger signals along the routes of trade
SO that the manufacturer may know
when he is about TO exceed the pre-
scribed ratio? He may justly be- re-
quired to govern his own conduct. but
how shall he be apprised of the con-
duct of others upon which is TO depend
his guilt or innocenceY
The patent laws confer true
monopoly in the exclusive right to man
uTacture and sell. Are these laws to
b. repealed because private mon
opoly is indefensible and intolerable?'
Brynn's Crude ReasoninE.
An example OF Mr.. Bryan's reason
ing is found in his statement that
when corporation controls 80 per
cent of the total product 1t supplies
forty millions of people with that prod
net" There are, of course. specialties
which have a limited market and are
used by a relatively small number of
the people Of the United States. More
than 10 per cent. and indeed even as
much as 100 per cent OF the trade in
such articles may be in the control
Of particular corporation. This may.
In fact be relatively a small corpora
tion. 1t may never have aspired to the
unsavory rcnowu OF trust" But by
prosecuting its particular line with
fidelity and meeting satisfactorily
limited want: or by reason of some
secret processes or advantage OF expert
ence. it may control the trade in a Civ
O. article OF commerce. Or. suppose a
concern controls the whole trade In
some useful byproduct which 1t has