Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-22
LAW FOR MONOPOLY
Sherman Enactment Discuss
ed by Luther Conant, Jr.
ITS EFFECT ON THE TRUSTS
Combats widespread Demand" for
Abandonment of Vital Principle.
SUBMITS HIS ANNUAL REPORT
Head of Bureau of Corporations De-
tails Work of the Past
Year.
ITS EFFECT ON THE TRUSTS
SUBMITS HIS ANNUAL REPORT

1T is remarkable" says Luther Conant.
Jr., commissioner of corporations. in his
annual report to Secretary Nagel. made
public today. that after years of effort
to maintain the vital principles Of the
Sherman antitrust act the first real
success in this direction. so far as con-
Germs industrial combinations. should be
accompanied by a rather widespread de-
mand for the practical abandonment of
that principle. and the substitution there
for of regulated monopoly. 1t should not
escape notice that among the foremost
advocates of such regulated monopoly
are the representatives of some Of the
most powerful consultations of the
time"
straightforward stand against the prop
osition for federation of monOpolies under
government regulation, and in the re-
port the commissioner urges the continu-
alton of the policy which permits COM
petition among the industries of the
United States. The commissioner says in
his report that recent decisions under
the Sherman antitrust act have demon
strated that the statute Is effective to
reach consultations which so cross the
border line Of absolute control as to be
dangerous to the public interest.
Substitution of Paternalism.
The creation of proposed trade COM
mission with powers Of regulation over
private corporations similar to those ex-
ercised by the interstate commerce COM
mission would mean, the commissioners
declares. 1.-The substitution Of a marked
degree Of paternalism for that freedom of
individual action under which. despite
admittedly fragrant abuses, the country
has attained an almost unparalleled
prosperity"
MIR. Conant SAYS:
Up to the present time the idea of
trade commission has been in the main
associated with regulation rather than
with maintenance Of competition. In
deed, any proposal for trade commits
sion with substantially the same juris-
diction over private business corpora
tons as is now given to the interstate
commerce commission over common car
Ters is in large measure a proposition
for the aband onment of competition and
for the acceptance of concentration and
combination on the ground that regula-
ton will sufficiently protect the public
welfare. For, there can be no doubt that
the old idea that unrestricted cOmpeti-
ton among railroad companies is desira-
BILE has been largely abandoned.
Bar to Competition.
that, to considerable extent at least,
such enterprises do not permit Of free
competition. although even here it is
noteworthy that where competition has
been virtually destroyed, as in the case
Of certain New England railroads. the
results have proved exceedingly unsatis-
factory from the public standpoint How
ever. it may be conceded that, SO far as
railroad and certain other quasi-public
corporations are concerned, the public
has definitely accepted the principle that
competition must largely be subordinated
to regulation. But to assume that the
same principle should be adopted in deal
ing with the private corporations of the
country is a radical departure.
Undoubtedly there are industries out
side the field of railroad transportation
and other public service enterprises
where the competitive principle is not en-
tirely applicable. but these instances pre-
sent exceptional problems to be dealt
with on their individual merits.
'One fact seems obvious: The oppor-
tunity for regulating monopoly cannot be
lost by attempts to maintain the COM
peitlve principle. II, on the other hand,
the experiment first be tried Of regulating
monopoly, there is grave danger that
competition may be destroyed to an ex-
tent which would make IT'S restoration
exceedingly difficult. Certainly 1t seems
the part of wisdom, just as the competi-
tive principle has been sustained and
vitalized by the highest court Of the land
to continue it's application under new con-
ditions, instead of hastily abandoning 1t
for an experiment involving obvious diff
culties and grave dangers