Los Angeles herald., 1908-07-29

better wages. At common law this
was not a restraint of trade or com
merce or a violation of the rights oi
the company or of the public. Neither
case ought to be made a violation OF
the antitrust law. My own impression
| is that the supreme court would hold
| that neither of these instances are
within it's inhibition, but if they are to
be so regarded general legislation
amending the law is necessary.
Combination Of Capital
The combination of capital in large
plants to manufacture goods with the
greatest economy is just as necessary
as the assembling of the parts of the
machine to the economical and more
rapid manufacture of what in old times
was made by hand. The government
should not interfere with one more
than with the other, and when such
aggregations of capital are legitimate
and are properly controlled, for they
are then the natural results of modern
enterprises and are beneficial to the
public.
In the proper operation of competi-
ton the public will soon share with the
manufacturers the advantages of eco
nomical operation and lower prices.
When, however, such combinations
are not based on any economic princi-
PIE, out are indue merely lOI IlS pul-
pose of controlling the market to main
tain and to raise prices, restrict output
and drive out competition, the public
derives no benefit and we have mo-
nopoly.
There must be some use by the COM
pany of the comprehensively great size
OF it's capital and plant, and extent of
it's output, either to coerce persons to
buy of it rather than of some other
competitor, or to coerce those who
would compete with it to give up their
business.
This must usually, in other words, be
shown In elements of dureSs in the con-
duct of its business toward the GUS
toners in the trade and its competitors
before mere aggregation of capital or
plant becomes an unlawful monopoly.
The Democratic platform does not
propose to destroy the plants OF the
trusts physically, but it proposes to do
the same thing in a different way. The
business of this country is largely de-
pendent upon protective system OF
tariffs. The business done by many or
the so-called trusts Is protected with
the other businesses of the country.
The Democratic platform proposes to
take off the tariff on all articles COM
ing into competition with those pro-
duced by the so-called trusts and put
them on the free list. II such course
WOulu De utterly uOohA uS.iNO
business, as is intended, it would not
only destroy the trusts, but all other
smaller competitors.
The ruthless and impracticable char
acter Of the proposition grows palmer
as its effects upon the whole COM
munity are realized.
In law trusts should be restrained
with all the efficiency of injunctive pro-
cess and the persons engaged in main
tanning of the guilty while our policy
is to stamp out the specific evil.
Cause Of Panic
This difference between the policies Of
the great parties is Of especial impor-
tance in view of the condition of busi-
ness. After ten years of the most
remarkable material development ana
prosperity there comes financial strtn-
gency and panic and an Industrial de-
preston.
This was brought about not only by
the enormous expansion OF business
plants and business investments, which
could not be readily converted, but also
by the waste OF capital, then extrava-
gance of living, In wars and other
catastrophes. The free convertible cap
ital was exhausted. In addition to this,
the confidence of the public in Europe
and in this country had been affected
by the revelations of Irregularities.
breach of trust, overissue of stock, vio-
lations of law and lack of rigid state
or national supervision in the man
agement OF our largest corporations.
Investors withheld what loanable capi-
tai remained available. 1t became Inn
possible for the soundest railroads and