Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-26
WANTS A SOUND MAN
OF PROGRESSIVE TYPE
Would Retain Combinations, But
Control Them for tho Public,
OPPOSED TO TAFrs POLICY
With Two Reactionary Candidates
Believes Progressives Would
Unite on Another Nominee.
Special Dispatch to n. Star.

Special Dispatch to TIE Star
CHICAGO. Ill. November 8-In the
expression Of his views which William
Randolph Hearst gave to Sumner Curtis.
Washington correspondent Of the Record
Herald. In response to the questions sub
mitted by the latter, Mr.: Hearst went
further than to pay his respects to the
Roosevelt administration as described in
yesterdays eastern papers.
Mr.. Hearst dissents emphatically from
Presidents Taft's view that combination
is menace to the community. Mr.
Hearst believes that combinations cannot
and should not be destroyed but should
be controlled to popular advantage.
Mr.. Hearst holds that If the democrats
nominate a man with sound business
views and with the sense to encourage all
honest business along legitimate lines
he will be overwhelmingly elected. He be-
lieves President Taft will be renominated
II he stays In Washington and attends
to public business. He does not think
the progressive republicans alone will
nominate q third ticket. but II the candi-
dates Of the two parties are reactionaries
then the progresAves Of the two parties
viii nominate q third ticket and elect
It He expresses preference for Champ
Clark or Oscar w. Underwood for the
democratic nomination The chief issue
he believes viii be the issue between re-
dictionary and progressive policies.
After castigating Roosevelt, he says:
TT 10 an indieputable fact that the
dghtnees Of the money market which
prectpitated the panic OF 1907 was first
brought about by the wholesale with
drawal OF foreign capital.
1T Is an indisputabie fact that the
wholesale withdrawal OF foreign capital
was due TO the growing distrust Of bnsi-
ness conditions in America, and 1t is an
indtsputable fact that the growing dis
trust OF business conditions IN America
Europe Of the reckless and thougntless
speeches Of the President Of the United
States.
Opposes Taft's Policy.
Mr.. Taft has at least some definite
trust policy. a mistaken one. I truly be-
heve, but, nevertheless, definite policy,
which he consistently and conscientiously
adheres to.
MIR. Taft apparently believes that COM
bination is a menace to the community.
that q policy Of permitting combination,
but controlling and regulating its deal
tngs with the public is ultra-socialistic, and
that the only way to protect the pubic
from the abuses OF combination Is to de-
stroy combination and restore competi-
ton.
"I personally believe that Mr. Taft is
entirely wrong. but I believe that he is
honestly wrong. ! believe that cOmbina-
ton cannot be destroyed and that 1t ought
not to be destroyed, that the advantages
Of combination are many, and all that is
~ HnY~ ha 1oY1f m IN Ia f<,
control combination and 80 regulate it's
dealings with the public that the public
will be allowed to participate In the ad-
vantages of combination.
From t heyiewpoint OF public policy
there are not good trusts and bad trusts,
but there are certain good things In all
trusts and certain bad things about all
trusts. The good things about the trusts
are the economic advantages Of combina-
ton. The had things about the trusts are
the various misuses Of the power Of
monopoly.
THE economic advantages Of combfna-
ton enable a trust article to be pro-
duced at a minimum Of cost. But the
power Of monopoly frequently enables
the trust article to be sold at maxi
mum of price.
1.-The difference between the low cost
OF production due to combination and
the high price due to monopolistic con-
troll Of the market all goes to the trust
capitalized into immense issues Of
stocks and bonds.
But whether so capitalized or not.
the excessive profit goes to the owners
and promoters Of the combination. and
the consumer 10 not allowed to par
ticipate in the advantages OF the lower
cost Of production, which IL one Of the
essential economic advantages Of COM
bination. 1t Is not necessary even to
ne usseoy noansi Sn .ntusas, - s.,a.s tnsnr..t -
may pronounce bad. But IL 10 neces-
sary to compel all trusts to be good;
that II, to share with the consuming
public the economic advantages Of the
trust.
Preserve Combinations Advantages.
What IL needed is q legal system
which will preserve the advantages Of
and prevent and punish the
specific acts and conditions which inure
to the public injury.
'-rhe overcapitalization Of trusts must
be prevented. Any capitalization Of the
power to extort money through monopoly
must be made impossible.
II believe this much Will soon be ac-
! believe that Mr.. Taft Is In
favor Of such q measure, and that his
railroad securities commisson, headed BY
Prof. Hadley. has recommended such an
The mere prevention Of overcapitaliza-
ton will not, however. prevent extortion.
combination which 10 q virtual monop-
oily can extort high prices and secure ex-
cessive profits, no matter what It's capi-
talization may be. AS a matter Of fact,
a combination which Is a virtual monop-
oily will extort high prices unless pre-
vented from doing so either by the in
lection of competition or by government
control
''If compulsory competition Is q waste
fuI, expensive. unscientific and outgrown
method Of conducting business. as IL sure
ly Is, then there remains nothing but gov
eminent control Of trusts-nothing but
punishment by government of specific
acts Of coercion and oppression, and regu-
lation by government either Of profits or
Of prices whenever q trust abuses its
power OF monopoly by fixing the prices
of its product at extorttonate figures.
Opportunity for the Democrats.
''If the democrats have only the intelli-
gence and judgment to nominate an able
man. thoroughly in sympathy with the
OF the mass Of the citizen
ship. butswith sound business views and
OConttnusd on Ninth PaGal