The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1912-10-01

About Trusts and "Wastes Of Com.
petition" and Supports the candi.
daey Of Wilson and Marshall.
Golfers is out for Wilson and Mar
shall. II 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
hcket was indicated in the issue of
Sept ~. In the issue Of Sept 21 its
reasons for espousing the Democratic
cause are clear and forceful.
The leading editorial, "The Wastes of
Competition" says:
coming down to two pressing issues,
the tariff and the proper treatment of
mOnOpOiies Golfers actively dis
agrees with the view Of monopoly be-
ing urged by Mcssrs. Roosevelt, Per.
Eins and Gary.
They talk a great deal about the
wastes Of competition. Tho 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 rcgu-
lated.
'"rhe La Follette-Lenroot and the
Stanley bills to perfect the Sherman
hur, ouI tto Manila oJ n ~, ~, In. rrr-
pOsals for an interstate trade commits
sion are all directed In part to that end.
Tho remaining wastes OF competition
mny be likened to the wastes of de-
Docracy. These are obvious. but we
know also that democracy has COM
pensations which render It more efii-
cient than absolutlsm. So 1t Ia In In.
dustry. The margin between what
men naturally do and what they can
do is so great that the system which
nrgcs men on to effort Is the best sys-
Aem.
''rhe necessary WASTES Of monopoly,
On the other hand, are enormous. Some
Of these can. Of course. be eliminated
by regulation. An efficient interstate
vtuuC tOubtulbNtou, UttIIk uDIpo
griute leeislntion. could put an end to
much Of the oppression Of which trusts
have been guilty. II could prevent un.
Just discrimination. 1t could prevent
ruthless and unfair use OF power; but
government commission would be
poweriess to secure for the people the
low prices commonly attendant upon
competition.
AS no means exist for determining
whether greater net earnings are due
20 greater efficiency In management or
90 excessive profits. large net earnings
would be followed by compulsory re.
ouctiOn Of prices. which IN turn would
create a sense Of injustice suffered,
parWlyze individual enterprise and pro.
6uce unprogressive. slipshod manage
ment Thc attempt 10 secure ioW prices
sAroMOh price GrinO could prore az I'm.
potent az the statutes Which hare sought
90 protect the public IN railroad rates by
aimiiin0 the diridends.
'"The Interstate commerce commits
sion has been invoked as nm argument
In favor OF licensing monopoly. That
commission has stopped many abuses;
u has practically put m end to cor.
rupt and corrupting discrimination In
rates; II has protected the shipper
from oppression ana arrogance and In.
Justice; II has prevented unreasonable
odrnntes In rates: but II has secured
In rates. except those involved In stop
plne discrimination between persons.
places or articles. II has been polCerless
% reduce ope,afiaO costs. and Orenfcr re-.
dsrfi0ns IN rates can come only piih 70.
dscfi01s In the cost OF producing trans.
povfafion. The injustice ana corruption
attending the earlier railroad period
were extremely serious. HUT we must
not forget that the sreepin0 reductions
us American operating costs and rates
eei0n0 10 the earlier period Of competitions
sm0nD railroads. In the ten years from
$50 to 1870. while competition among
cue railroads was active. the freight
rate per ton per mile was gradually re.
ducd from .Nl to 724. The years
u800 400 marked the great movement
Tor combination or community Of In.
herest" IN the railroad world as well
be In the Industrial world Tho freight
sste per ton per mile began TO vfse. In
zach OF the eleven succeeding years !,
was higher than In 1900. ana In 1910
. was 7a3
1.-THE deadening effect Of monopoly
- illustrated by It's arrest of inven
fiou. The shoe machinery trust. form
20 In iS!n. resulted 10 combining. di
eectiy ana Indirectly. moro than lOt
0hoe machinery concerns. II acquired
pubstantlaily q monopoly Of all the ca
Nentiai machinery used In bottomlnp
psoots and shoes. as veil m many 9th
pr machines II believed itself unas
Valuable, and shoe manufacturers baG
1come 10 regard their suhjection 10 tn,
Erust az unavoidable. Nevertheless u
p0iO the trust found It's prestige sud
t6eniy threatened and its huge profits
1mnpriis.d IL waa confronted with I