The comet. (Johnson City, Tenn.) 1884-1916, 1912-10-03

petition" and Supports the Candi.
daoy Of Wilson and Marshall.
Golfers is out for Wilson and Mar
shall. 1t refuses to support Theodore
Roosevelt plus George w. Perkins
Elbridge II. Gary and the rest of the
steel trust-harvester trust magnates.
Its open opposition to the third term
ticket was indicated in the issue of
Sept IA. In the issue of Sept 81 its
reasons for espousing the Democratic
cause are clear and forceful.
The leading editorial, "The Wastes of
Competition" says:
More and more the campaign Is
coming down to two pressing issues,
the tariff and the proper treatment of
monopolies, Golfers actively dis
agrees with the view of monopoly be-
ing urged by Messrs. Roosevelt, Per
kins and Gary.
They talk great deal about the
wastes of competition. The necessary
wastes Of competition are relatively In
significant, and the wastes of unfair
and destructive competition are wholly
unnecessary. They will be largely
eliminated when competition is regu-
lated.
The La Fellette-Lenroot and the
Stanley bills to perfect the Sherman
law and the Newlands- Cummins pro-
posals for an interstate trade commits
sion are all directed in part to that end.
The remaining wastes of competition
may be likened to the wastes of de-
mocracy. These are obvious, but we
know also that democracy has COM
pensa tons which render it more eff
Gent than absolutism. So it is in In
dustry. The margin between what
men naturally do and what they can
do is so great that the system which
! urges men on to effort is the best sys-
TEN.
THE necessary wastes Of monopoly,
on the other hand, are enormous. Some
Of these can, Of course, be eliminated
by regulation. An efficient interstate
tpade cem@hssion. acting under apPro-
pirate legislation. could put an end to
much of the oppression of which trusts
have been guilty. 1t could prevent I'M
just discrimination. 1t could prevent
ruthless and unfair use of power; but
n government commission would be
powerless to secure for the people the
ott
competition.
"As no means exist for determining
whether greater net earnings are due
to greater efficiency in management or
to excessive profits. large net earnings
would be followed by compulsory re-
duction of prices. which in turn would
create sense of injustice suffered,
paralyZe individual enterprise and pro
duce unprogressive. slipshod manage
ment The attempt to secure loto prices
Through price firing could prore as i'm
potent as the statutes a1hich hare sought
to protect the public in railroad rates by
limiting the diUidends.
"The interstate commerce commits
sion has been invoked as an argument
in favor of licensing monopoly. That
commission has stopped many abuses;
1t has practically put IN end to cor
rupt and corrupting discrimination in
rates; it has protected the shipper
from oppression and arrogance and in
Justice: 1t has prevented unreasonable |
advances in rates; but It has secured |
comparatively few notable reductions
In rates, except those involved In stop |
ping discrimination between persons,
places or articles. II has been ponerleSs |
to reduce operating costs. and greater re, |
dncfioHS In rates can come only nih re- |
auctions IN the cost Of producing trans |
portation. The injustice and corruption
the earlier railroad period |
were extremely serious. But we must
not forget that the Smeepin0 reductions
In American operating costs and rates
belong TO the earlier period Of competition
among railroads. In the ten years from
1880 to 1900. while competition among
the railroads was active, the freight
rate per ton per mile was gradually re.
duced from .941 to .724. The years
1890 1900 marked the great movement
for combination or community of in
ferest" in the railroAd world as well
as in the industrial world The Freight
rate per ton per mile began 10 rise In
each Of the eleven succeeding years 1t
was higher than in 1900. and In 1910
It was 1913
1.-THE deadening effect of monopoly
s illustrated by its arrest of inven-
lion. The shoe machinery trust. form
I'd IN 1900. resulted In combining d.
'ectly and Indirectly. more than 100
shoe machinery concerns. II acquired
monopoly of all the 90
'ential machinery used In bottoming
ooots and shoes, as well as many 9th.
n machines. 1t believed itself mas
'allable, and shoe manufacturers had
'ome to regard their subsection to the
rust as unavoidable Nevertheless. In
010 the trust found its prestige sud-
lenly threa tened and, its huge profits
mperiled. 1t was confronted with