New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-20
Declares a Government Commits
sion to Regulate Great In
duStrieS Desirable.
HIS DECLARATIONS RADICAL
Prices of Staples Fixed by Agree
ment Between Producers, Not
by Competition, He Says
to Minnesota Bar.

state Bar Association here to-day took
IN advanced stand on the further federal
regulation Of corporations. and declared
that a government commission 60 regu-
late great industrial organizations. in
the same way that the Interstate Com
mercc Commission regulates railways,
was certainly most desirable and that
il might be absolutely necessary.
Mr.. Wickcrsham's speech was little
short OF sensational I'm many OF it's feat
rres. lie declared that it was mat
ter Of serious consideration whether Il
would he practicable 10 give TO the pro-
posed interstate corporation commission
the power 10 fix prices. To do this n
theory would simply require an extern
sion of tho principle by which the Inter
state Commerce Commission controls
tho rates on railroads.
The law of supply and demand, Mr..
Wickersham said. no longer controls
prices in the United States. For years,
he declared, the prices in all the great
staple industries have been fixed 10y
agreements among the principal pro-
ducers and not 10y a normal play of free
competition.
An Interstate commission. the Attor-
rey General added. would prevent vio-
Ia.ion Of the antitrust act and aid busi-
ness men to maintain continued status
az harmony with requirements of the
law.
Remarks Make Deep impression.
Many of Mr.. Wickersham's declara-
lions were the most radical he has made
since his entrance into official life. His
remarks made deep impression. There
was nothing the speech, however, to
indicate how .ar the Attorney General
reflected tho views Of President Taft.
The Attorney General discussed the
general question of what further regula-
ton Of Interstate commerce is necessary
or desirable. from a broad point Of view,
and said that he had not attempted to
express a conclusion, but merely to
state the elements Of a great problem
which goes 10 the root Of the prosperity
of the American people
Mr.. Eickorsham said in part
That some further regulation over corpo'
.iations carrying on commerce among tle
-t4fog may be necessary IS, however com
ing to be a matter Of current comment ~
Las been openly advocated quite recently
Ir rapreSentatives Of some Of the largest
combinations OF capital. probably as
means OF salvation and TO preserve under
government supervision great OrSdnlLd IiOhs
where continued existence is menaced py
The recent Interpretation OF the sherman
act the disintegrdtiOn Of which WouId De
necessarily attended with much loss. 10
such it is case Of any port IN snip
wreck.
Better continued cooperative life, even
under powerful master, than disseminat
I'd properties and segregated acuNiues
without constant governmental supervision.
Ruf there are other reasons for SuCh
regulation. The federal Department OF JUS
lice is not organized or equipped to nam
lin constant supervision and control over
business organizations. II deals only with
cases OF violation Of the law. The acuvl-
Ties Of an administrative board or commls-
sion would be directed 10 preventing such
Violations and in aiding business men 10
rlsfrtal1 81 continued status Of harmony
with she requirements OF law
Regulation of Prices.
Whether or not such a federal industrial
commission should have power 10 regulate
,..i,es is of course. matter for serious
consideration TIE interstate commerce
law prescribes as a legislative rule that
lIlCcS Tor transportation Dy Idll, OI WIZ
or pipe line. snail be reasonable ana tnat
10 uujus; discrimination shall be made be-
tween individuals or localities similarly
situated. similar rule might be .t de,
C.arcd hy Congress with respect TO the
prices of commodities the subject Of inter-
state commerce"
We have become accustomed 10 the regu-
lafiou OF rates Of transportation, but the
suggestion that prices OF commodities be
1rGulated by congress seems novel ana
radical Yet the principle on which the
faf ~ hg
S. simply that when property is used In =
manner 10 make il Of public consequence
and affects the community at largo II be
comes clothed with a public use ana may
BE- controlled by the public for the common
good ln the early daVs in some parts OF
inc country statutes were enacted 10 regu-
late the business Of millers and the rates
tncy might charge for grinding: At that
time 10 was matter Of public concern
that every farmer should have the right
70 have his corn ground az a reasonable
rate
New Application of Principle.
50 to-day the conduct OF the great com
inerco on staple articles among the states
IS become matter OF public consequence,
"ud the courts nave upheld legislation reg
oating 10 and prescribing some Of the con-
oiions under which II may he carried on.
TO require, as one of these conditions that
1rices for commodities dealt in In inter
slate commerce must be reasonable only
involves d new application Of the same
principle
The antitrust legislation Of the United
Slates and most Of the separate states is
based on the theory that the natural price
oi an article il that fixed By the operation
or the natural law Of supply and demand.
WORKING without artificial restraint. But
me fatt is that the law OF supply and 6e-
mdhd does not and has not for many years
"orhed iU this country I'm natural, unre-
strained ana uufettered manner. The gov
'fnment, in the first instance, interposes
IN afthcial restraint In the protective tariff
on imports True. the theory OF this tariff
l~ 10 eqGalize conditions Of competition-tO
iiace, a. 4 Were, handicap on the for
'iSh competitor who has produced his
''hmpdities under conditions less burden
zone man those under which the American
manufacturer produces his. But, in fact,
l.' inequalities resulting from the methods
~, 'dflU legislation are very often impOs-
SlDie % Justify on the theory Of sufficient
iIplecuou only. and tho resulting price is
mat hXcd 5v limited competition between
'''dletS bon the market from which foreign
tluded -
Nor is This all. II Is probably safe 10
ray mat ~ almost oVcry one Of tho great
Tdpie industries prices have been for years
Hhe9 hy agreement between the principal
'"1cers and not by the normal play Of
-''' competition, even among the domestic
t"oH'trs, nor by The uni icttcred operation
y" the aW of supply and demand.
sant l3ct seems TO be that the prices OF
.,'huaid articles Of consumption sold in
" United States for number Of years
'S' nave not been fixed at AL by tho
pIdu"h 81 the laws Of supply and de-
i.e"u Or OF unrcstrained competition. bat
associations Of the producers, without
t pdiuclpaiion Of the consumer or the
General public that is without those who
"I 70 pay the bill having any voice IN
NiS Tie price In tlfs view. II IL GER
foh,E h9t unreasonable that the purchasJ