Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-16
Secretary RedfieId Would Re-
gard All Restraint of Trade
!. as Unreasonable"
talks OF BIG BUSINESS
and COST OF PRODUCTION
Annual Report Outlines Plan for Re.
Organizing Bureau Of Foreign
: and Domestic Commerce.

legislation designed to enable the gov
eminent adequately to handle the all
important trust question is recommended
by Secretary Redfield of the Department
OF Commerce in his first annual report.
just.made public The legislation recon-
mended would presume that all restraints
of trade are unreasonable and would
place the burden of establishing the rea-
son alleging it; would prohibit interlocking
son a"egings would prohibit interlocking
directorates; prohibit the watering" OF
stocks, and prohibit corporations and per-
sons from owning stocks in or controlling
competing companies. The report also
discioses plans for an extensive investi-
cation into the economic features OF the
trust problem.
Second only in interest to Mr.. Red
fields views on the trust question are his
plans for developing the trade OF the
United States abroad by a reorganization
of the bureau of foreign and domestic
commerce.
out for the bureau of corporations. which
viii range from an investigation OF
whether trusts are efficient to a study
OF the economic laws governing the fixing
of retail prizes. bears an important re-
lation to President Wilson's. legislative
program.
Secretary's Views.
Secretary Redfeld discusses it exhaust
3yely, and substantially outlines his views
as follows:
There is a growing question in the
minds of experienced and thoughtful men
as 70 whether the trust form of organi-
Zatieh.i IS industrially efficient and wheth-
er hlgness and bulk are always necessary
20 production at the lowest cost. 1t may
be conceded that massing of capital and
the grouping of great quantities of labor
have certain elements of efficiency- But
il iS-doubtful, at best, whether these ia
vorA6le elements are all the factors that
exist and whether there does not come
a point of maximum efficiency at mini
mum cost beyond which an increase of
product means an increase of cost per
uniscof that product
IT is significant that some of the
grexf trusts have ceased to exist. that
others pay but moderate dividends. IL
amy on their securities. and that side
by side with the most mighty and sup
posedly the most efficient of them have
grown up independent organizations quite
as successful and perhaps earning even
more upon their capital than their power
ful competitors.
There is no criticism here Of big bust
ness as such, but merely the question as
10 whether big business has not its very
marked limitations and whether there are
not ceases where bigness is rather less
desirable than efficiency.
Is
Purpose of the Bureau.
The purpose of the bureau of corpora
lions is to study patiently that we may
know: whether these bulky things that
we have SO much feared are In ar
economic sense real giants in strength OIL
whether they are but images with fee
of clay. There can be no objection or
the part of any one. whatever his views
of Industry. toward a study which shall
determine the truth, which truth, IL 1t be
indeed the truth, must itself determine
in the final analysis. the course which the
legislature and the executive may wisely
take concerning these matters
..It is important that We should know
the truth about the fixing of retail prices
and as to- whether giving the privilege OF
SO fixing the prices to a manufacturer
tends toward monopoly or does not SO
tend Men who are sincere and well
informed do not think alike on this prob