The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-07-28
Equality of Opportunity

lished in another column Mr. Bavis explains his
attitude on the question of sliding scale OF
prices for natural gas in this city and asks why
the editor of the Palladium sought to draw him
out on this phase of the gas question.
The editor had two main reasons in mind
One was Why should any man be insistent for a
provision in the contract specifying and guaran-
teeing standard service and quality and not be
equally insistent for a standard uniform price
The second was that if Mr. Bavis saw fit to reply
and in doing used the old, old argument that 1t
is cheaper to sell to one large buyer of any COM
modify than to ten smaller ones and, therefore
the larger buyer should receive lower price, the
way would once more be cleared for the editor to
ask Mr.. Bavis and other readers of the Palladium
Would you rather that all industry shall become
enslaved by monopoly or freed by competition
For the present system of sliding scale prices
cording to the difference in the quantity buying
power of various units in the same line of bust
ness, is the real and absolute root of monopoly.
Of course the answer to the latter question
depends upon just one thing. That is Which is
the more efficient, monopoly or competition
Which serves humanity better and gives the in
dividual the most freedom of action for the devel
opment of intelligence and ability? Which will
more likely insure each producer receiving his
fair share in the distribution of receipts from the
common production?
Monopoly has made fearful strides towards
absolute supremacy in the industries of our coun-
try In direct proportion to the growth of mo-
nopoly has been the increase in the cost of living
That is, as the old competition succumbed to mo-
nopoly, the cost of the necessities of life has
risen very much more rapidly than have risen
the wages and salaries paid the producers OF
those necessities and the rate of dividends in
terest paid those who perform the important
function of saving portion of their income,
without which all further progress would cease
This increasing difference between the price paid for
production and the price charged the producers is
posed of two elements. is the power the monopo
list to charge the highest price he desires for the
product he controls. The other is that with monopoly
it is easier to to the in higher prices
the cost of is to hunt down
and eliminate it. And human nature will always choose
the easier way where it can.
Under competition the individual manufacturer may
desire to charge "all the traffic will bear But the
traffic" will bear any higher price ndi
vidual manufacturers competitors charge. There you
have automatic price regulator such could be
obtained through human enactments in dealing with mo-
nopolistic prices.
Furthermore the penalty for nefficiency in any unit
of competitive industry is elimination The inefficient
manufacturer not the of his wastefuness
to the in higher prices His prices
lated by the prices of his competitors If his competi
tors efficient than he then he must either be
efficient they out of business. This
incentive for efficiency absolutely lacking monopoly
There the easiest and consequently most usual proceed
is to raise prices sufficiently the
nefficiency And the to do this is entirely
within the meaning of the word monopoly.
The editor believes in competition. He under
its laws in the business and he finds real
principles are founded eternal justce-the fit and
worthy shall survive; the unfit shall eliminated
He believes the continued growth of monopoly, how
ever should be viewed with the gravest apprehension
it is allowed to and enlarge, it will eventually
and control the entire country And in that day if the
people have been deuded into believing aacious
trine that monopoly is efficient than competition
they will turn to the government ownership common
wealth proposed by socialism for relief
mile burdens that private monopoly always imposes.
The editor does believe socialism would prove tc
be the remedy is promised to be by its advocates. He
believes the nefficiences private
nopolies will exist in government monopoly. And
While the editor advocates returning the industries
the country to competitive basis he realizes that they
could be placed competition that
held forth. That competition held within
trayal of all competition the merciless monop
oily.
The weak point in the armor of the old competition la,
In the principal that to the larger purchasers of
terals should the smaller prices under the sliding
method of making prices Under this system the
competitor always paying higher price
materials his bigger competitor used Naturally this
the larger competitor the advantage in price making
enabled him to continually grow bigger and bigger
his discount constantly increased 1t wasn't the
efficiency directly
him to crush his smaller competitors. 1t the
primarily of his purchasing power; the fact that
his dollar would purchase a greater quantity than his
smaller competitors dollar
Under the old conditions of competition of two com
petitors starting equal regards gross
if realized what the discount trick would
10 him, he simply shared a portion
obtain buying quantities
the nancers obtain additional capital with