Martinsburg statesman-democrat. [volume] (Martinsburg, W. Va.) 1906-1921, 1912-08-02
PRICE REGULATION.

Three members OF the Stanley Com
mittee, who join in minority report,
are satisfied that it is futile to dis
solve the Trusts and prescribe instead
thereof governmental regulation of
prices. This is the regular Republl-
can or Taft view. The Roosevelt view
is presented by Congressman Young,
whose report is a general approval of
the United States Steel Corporation
and specific and unqualified approval
of the action of Mr.. Roosevelt in per-
hitting the Steel Trust to absorb the
Tennessee Coal and Iron Company at
time when its amalgamation with
another large Independent was immi-
nent If this had not been prevented
the Steel Corporation would have had
a very formidable competitor.
The plan of the three Republicans
who join in a minority report is alto
gether premature. We may possibly
come to the time when the Govern
ment will have to regulate prices, but
we have not reached that yet. Not
nearly all the means of promoting com
petition have been tried. These three
Republicans recommend an Interstate
Commission of Industry, compulsory
Federal Incorporation for companies
OF $50, 100000 of capital engaged in in
terstate commerce and voluntary in
corporation for smaller corporations
engaged in interstate commerce, over
capitalization to be forbidden to Fed
eral corporations, and interlocking di-
rectorates to be subject to the con
sent of the commission. The commits
sion would have power 10 declare
price unreasonable and recommend
reasonable price. "If the foregoing
recommendation shall prove INSULT
cient to meet the Trust problem the
Interstate Commission of Industry
ought to be given carefully-guarded
power to decree maximum prices when
necessary"
The Democratic members of the
committee are justified in their posi-
ton that competition may yet be main
tanned as natural regulator of prices.
Over-capitalization is of only second
airy importance, but it is Objectionable
and it might be prevented without the
device of Federal charters. The hold
ing company is the most effective in
strument in the formation of combi-
nations in restraint of trade and no
effort has yet been made, or even pro-
posed, to forbid the ownership of one
company's shares by another company,
even when the latter Is nor an opera
ting company enlarging It's business,
but a holding company organized for
the exclusive purpose of concentrate
ing the control of many corporations
This ought to be tried before we go
into governmental regulation OF prices.
Many years ago, to prevent compe-
tition, the Steel Rail Pool subsidized
a newly-erected rail mill. The Sugar
Trust in more recent years bought
an independent refinery in Camden,
acquired mortgage on one in Phila-
delphia, and for three years paid $780,
900 a year to refinery in California.
Most of the Trusts refuse to sell to
any concern that deals in a rivals
goods. Where this is not an absolute
stipulation the end is accomplished by
giving a rebate to the dealers who
maintain the list prices.
No effort to legislate against these
practices has been made. All this
ought to be done before we confess
the impossibility of competition and
create a Government body to fix
prices. We forbid rebates by rail.
roads rebates by manufacturers are
entirly analogous. The uniform price
of the common carrier rests upon the
lack of competition to which he is ex-
posed. The manufacturer mas to a
large extent suppressed competition,
and in analogy with the railroad bust
ness he may be required to sell to all
customers and on equal terms. A
broad middle ground is yet open to us
between monopoly and governmental
price regulation.