Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-09-14
M A DAILY TRIBUNE

to have %triumphed, at least, temporarily, in the cleo
ton of Woodrow Wilson and in the success of the
democratic party.
One thing is certain, party lines will not be tightly
drawn on this question. They should not be. 1t is
an economic problem pure and simple, and politics
should not enter in.
Perhaps the experience Of foreign. nations will be
Instructive. In EUROPE there are mo combinations
like the highly organized holding companies in this
country. In Germany and Austria industrial combina-
tons are similar to the pools In this country before
1890. Corporations are permitted and encouraged to
form pools, or Kartels, as they are called, which are
under the strict supervision Of the government. In
some cases the government has a pecuniary interest
in the Kartel, determines the output of each company,
and even dictates the price Of the product. This is
true in Germany, for example, of the potash industry.
The German method Of dealing with the trusts is
somewhat analogous to Roosevelt's proposition Of
regulated monopoly. The highly centered autocratic
government makes such control possible.
Australia and Canada have endeavored to solve the
trust problem in another way. The Canadian "Com-
bines Investigation Act" passed in 1910, is similar to
the Australian law. It is based OH the assumption
that monopolistic power is due to special privileges,
such as the tariff patents, and concessions or arti-
fetal advantages of transportation. The act does not
propose to take away privileges unless they ale
abused. The provisions Of the Canadian law are, in
brief, as follows: When six persons, citizens OF
Canada, file "a written complaint with a urge, Of a
circuit court that 4 combination exists WAhacb uses
its monopolistic power to unduly enhanceMthg price
of it's product, and if there appears tleasOnAbleo
grounds for the complaint, said judge notifies the
minister Of labor. The minister of labor may order
an Investigation by a board Of three members. One
member is chosen Ivy the parties making the COM
plant, one by the combination complained OF, and
one by the ministe Of labor. Each member receives
$40 per day and expenses. They have the power TO
summon witnesses and compel the production of rec
ords and accounts. Disobedience is punished as
contempt of court. H "
In order to give complete publicity to the findings
the proceedings of the board are published in the
Canada Gazette. If it has been proved that prices
lave been unduly enhanced because of the tariff, the
tariff may be removed or reduced. If excessive prices
arc due to patents the minister of labor may COM
mence an action to have it revoked. Besides, a cor
poration may be fined $1,000 a day for continuing the
practices complained of.
The act has been quite successful In operation.
Among the combinations successfully prosecuted is
the shoe machinery trust.
The United States cannot pass a law exactly SIM
liar to the Canadian act. There are certain features
in it which would not be constitutional. Nor is the
highly centralized control exercised by the German
and Austrian governments desirable. The puDllcHy
feature of the Canadian law is. especially commend
able. Corrupt practices cannot endure the light OF
publicity. The difficulty with us is that we do not
know whethers monopoly is q natural result OF the
competition %or5whether it is artifcially created oy
special privileges. These facts can be ascerta1ned.
But our democratic friends evidently DO not care
to base legislation on facts obtained through impartlal
investigation. They have revised the tariff In a nap
/ hazard way. II they deal with the trust question Ill
the same manner, we shall have CONFUSION worse
confounded." The republican party desires to icy
islate inteligently by creating a tariff commission
to supply facts concerning the tariff and an Industrial
commission to investigate and regulate the trusts.