Daily independent. [volume] (Elko, Nev.) 188?-1915, 1912-10-09

wasres or competition. the necessary
wastes Of competition arc relatively
insignincant, and the wastes Of unfair
and destructive composition are wholly
unnecessary. They viii be largely
eliminated when competition II regu.
lated.
The La Follette-Lonroot and the
Stanley bills to perfect the Sherman
law and the NowlAndS- Cummins pro-
poSals for an interstate trade commits
sion arc all directed in part to that
end. The remaining wastes Of compe-
tition may be likened to the wastes Of
democracy. These are obvious, but we
know also that democracy has COM
penSations which render It more eff
oient than absolutism. SO It IL In in
dustry. The margin between what
men naturally do and what they can
do Is 30 great that the system which
urges men on to effort is the best sys.
tenn.
The necessary wastes OF monopoly,
on the other hand, are enormous. Some
OF these can, Of course, be eliminated
by regulation. An efficient interstate
trade commission, acting under appro-
pirate legislation, could put an end to
much of the oppression Of which trusts
have been guilty. 1t could prevent un.
just discrimination. It could prevent
ruthless and unfair use Of power; but
q government commission would be
powerless to secure for the people the
low prices commonly attendant upon
competition.
AS no means exist for determining
whether greater net earnings are due
to greater efficacy in management or
to excessive profits, large net earnings
would be followed by compulsory re-
duction of prices, which in turn would
create a sense of injustice suffered,
paralyze individual enterprise and pro-
duce unprogressiye. slipshod manage
ment. The attempt to secure loo
prices through price fGin0 1oould
PROVE as impotent as the statutes
tohich haze sought to protect the pub
Tic In railroad rates by limiting the
dividends.
"The interstate commerce commits
sion has been invoked as an argument
commission has stopped many abuses;
1t has practically put an end to cor
rupt and corrupting discrimination in
rates; 1t has protected the shipper
from oppression and arrogance and in
Justice; 1t has prevented unreasonable
advances in rates; but 1t has secured
comparatively few notable reductions
in rates, except those involved in
stopping discrimination between per-
sons, places or articles. 1t has been
potoerleSs to reduce operating costs,
and greater reductions in rates can
come only tCith reductions in the cost
of producing transportation. The in
justice and corruption attending the
earlier railroad period were extremely
serious. But we must not forget that
the Stoeepin0 reductions in American
operating costs and rates belong to the
earlier period of competition dmong
railroads. In the ten years from 1889
to 1899, while competition among the
railroads was active, the freight rate
per ton per mile was gradually re-
duced from .941 to 1924. The years
1899-1900 marked the great movement
for combination or community of In.
terest" in the railroad world az we'll
as In the industrial world. The freioht
rate per ton per mile began to rise. In
each Of the eleven succeeding years It
was higher than in 1899, and in 1910
1t was 1853.
1.-THE deadening effect Of monopoly
Is illustrated by its arrest of inven-
ton. The shoe machinery trust, form
ed In 1899, resulted in combining, d.
rectly and indirectly, more than 100
shoe machinery concerns. 1t acquired
substantially monopoly OF all the es.
Bential machinery used in bottoming
boots and shoes, as we'll as many 9TH
er machines. 1t believed itself unas-
sailHble, and shoe manufacturers had
come to regard their subsection to the
trust as unavoidable. Nevertheless, in
1910 the trust found It's prestige sud
denly threatened and it's huge profits
lnpsrDed. 1t was confronted with
competitor 80 formidable that the
trust, In fragrant violation Of law, paid
100000 to buy him out. Thomas q.
Plant had actually succeeded In devel-
oping In about Ave years, while the
trust was stolid from monopoly, q
substantially complete system of shoe
machinery which many good judges
!oeolaTed to be superior to that Of the
trust.
! George w. Perkins. apostle Of thu
isk4S - IIIIalIHaps