Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-12-16

Washington, Dec. 10.-Beside dis.
closing plans for AN extensive inves.
tigation into the economic features Of
the Trust problem, Secretary Redtield
Of the department Of commerce in his
first annual report recommends legis-
lation to presume that all restraints
Of trade are unreasonable and ia, place
the burden of establishing the rea-
sOnableness OF the restraint upon the
person alleging it, ta prohibit inter
locking dircctOrates; to prohibit iva
tering" of stocks; and to prohibit cor
pOratiODs and persons from owning
stocks In or controlling competing
SECOND only in int ass, to. Mr. Red:
fields views on the Trust question
are his plans for developing trade OF
the United States abroad by, q reOr.
ganization Of the bureau of foreign
and domestic commerce. ~
The Trust question and the work
laid out for the bureau of corpora
tions, which will range from an inves.
tigation of whether trusts are efficient
to a study of the economic laws gov
erning the fixing Of retail prices,
bears an important relation to Pres,
ident Wilson'S legislative program.
Secretary Redfield discusses it ex-
haustively and substantially outlines
his views as follows:
3 'rhere is a growing question In
the minds Of experienced and thought
full men q sto whether the trust
form of organization is, industrially
efficient and whether bigness and
bulk are always necessary to produc-
ton at the lowest cost. 1t may be
conceded that massing of capital and
the grouping OF great quantities of Ia
Dor have certain elements of efficien-
cy. But it is; doubtful, at best, wheth.
er these favorable elements are all
the factors that exist and whether
there does not come a point of max
imum efficiency at minimum cost be-
yond which an increase of product
means an increase of cost per unit
Of that product.
1T is significant that some of the
great trusts have ceased to exist;
that Others pay but ;moderate divi-
dends, II any; on their securities, and
that, side by side with the most
mighty and supposedly the most eff
cient Of them, have grown up indie.
pendent organizations quite as sue
cessful and perhaps earning even
more upon their capital than their
powerful competitors.
There is no criticism here Of big
business as such, but merely tle
question as to whether .big business
has not it's very marked limitations
and whether there are not cases
where bigness is rather less desir-
able than efficiency.
"The purpose of the bureau OF cor
porations is to study patiently. that
we, may know whether these bulky
things that we have 80 much feared
are in an economic sense real giants
in strength or whether they are but
images with feet of clay There can
be no objection on the part of any
one, whatever his views Of industry,
toward study which shall determine
the truth, which truth, IL it be, in
deed, the trush, must itself determine
In the final analysis the course which
the Legislature and the executive may
wisely take concerning these mat
ters. ssss
It is important that we should
know the truth about the fixing Of re-
tail prices and as to whether giying
the privilege of so fixing the prices
to manufacturer tends toward mon
op0ly or does not so tend. Men who
are sincere and we'll informed do not
think alike on this problem, but what
ever their views, 1t will be agreed
that no thorough study has ever been
made OF the subject In this country.
Nations abroad are said to favor by
law that which We forbid.
+ The law with us is Tor the time fix
ed By the decisions u the supreme
court that the fixing of retail prices
on the part OF manufacturers is unlaw-
ful. II, however, new LEGISLATION
Confined on Page 81