The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-22
NO FEDERATION
OF M0N0P 0LIES'
Conant Opposes Much-Discusscd
Principal of Governmental
Regulation.
HE URGES COMPETITION
Commissioner OF Corporations
Tells What Has Been Accom-
plished by His Bureau.
URGES COMPETITION

| washington, FEBRUARY 2l-buthe or
Conant, Jr., Commissioner of Corpora
lions. to-day came out in opposition
to the much discussed proposition for
liberation of monopolies under govern
mental regulation, and urged the con-
tinuation of the policy which permits
competition among the industries of
the United States.
In his annual report to Secretary
Nagel. made public to-day, the COM
missioner says that recent decisions
under the Sherman antitrust act have
demonstrated that statute is effective
TO reach consultations which so cross
| the border limo Of monopolistic control
as TO DE detrimental to the public in
| tcrcst.
Surprising Demand.
| 1T is remarkable" he added Chat
after years of effort to maintain the
vital principle of the Sherman anti
trust act the first real success i'm this
direction, so far rs Industrial combina-
ions arc concerned. should be accom-
panied by rather widespread demand
Ior the practical abandonment of that
| principle and the substitution therefor
| OF regulated monopoly. II 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"
The creation of a proposed trade
commission, with powers OF rcgula-
tlon over private corporation similar
10 those exercised by the Interstate
commerce Commission. would mean,
the commissioner declares the sub
stftution of a marked degree OF pater-
nallsm for that freedom of individual
action under which, despite admittedly
Migrant abuses, the country has at
tanned an almost unparalleled pros
perity." The commissioner adds that
even In connection with railroads
where competition has been virtually
destroyed, as in the case of certain
New England railroads. the results
nave proved exceedingly unsatisfac-
Tory from the public standpoint" Saws
Mr.. Conant:
Up to the present time the idea of
trade commission has been in the
main associated with regulation. rather
than with maintenance, of competition.
Indeed. any proposal for n trade com
MISSION with substantially the same
jurisdiction over private business cor
poratiohs as is now given to tho Inter
state Commerce Commission over com
mon carriers is in large measure n
proposition OF concentration and COM
bination on the ground that regulation
VIII sufficiently protect the public well
fare; for there can be no doubt that
the old idea that unrestricted CONNIE
tition among railroad companies is de-
srable has been largely abandoned
Instead, public opinion has recognized
that, to considerable extent at least
such enterprises do not permit OF free
competition, although even here IL is
noteworthy that where competition has
been virtually destroyed, as in the case
or certain New England railroads, the
results have proved exceedingly unsat-
isfactory from the public standpoint
ha
far AZ railroad and certain 9TH
er quasi public corporations are
concerned. the public has de-
fnitely accepted the principle that com
petition must largely be subordinated
to regulation. But TO assume that the
same principle should be adopted in
dealing with the private corporations
OF the country is radical departure.
Exceptional Problem.
Undoubtedly, there are industries
outside the field of railroad transpor-
alton and other public service enter
pie is not entirely applicable, but
these instances present exceptional
problems 10 be dealt with on their in
dividual merits.
"One fact seems obvious. The OPP
portunity for regulating monopoly can
not be lost by attempts 10 maintain
the competitive principle. IT, on the
other hand. the experiment first be
tried OF regulating monopoly. there is
grave danger that competition may be
destroyed TO an extent which would
make its restoration exceedingly diff
cult.
Certainly it seems the part of wis
dom, just as the competitive principle
has been sustained and vitalized by
the highest court OF the land. to CON
tinue it's application under new CON
ditons, instead of hastily abandoning
f..,. mi,
difficulties and grave dangers
Discussing the Bureau of Corpora
tons recent recommendation that the
Federal government should retain the
ownership of the remnant of timber
land now owned by il and increase its
holdings by such lands as may be re-
covered through forfeiture suits the
commissioner explains: The bureau did
not advocate government ownership OF
timber in general. but simply the re-
tcntion in public Ownership of certain
timber until the time of actual use
This recommendation, instead OF being
an Endorsement >ofthc principle of gov
eminent ownership in general should
have a contrary effect by preventing
conditions for which Federal control
and Federal ownership are now so Of
ten sought as a panacca"
While the act creating the Bureau of
Corporations expressly provided for
Investigations Of insurance corpora
tions, Mr.. Conant announced that in
quiries of that character had been
abandoned owing to doubtful jurisdic-
tom. as the United States Supreme
Court has repeatedly held that insur-
ance was not commerce.
Results Attained.
Substantial results have followed in
the wake OF the bureaus campaign of
publicity, the primary purpose of its
existence, says tho commissioners. The
nhaf t,h
rebate and dissolution cases against tho
Standard Oil Co. and the suit against
the United States Steel Corporation
wore. he says. TO a very large extent,
predicted upon facts published by the
bureau, while certain of the bureaus
information was used in the govern
ments litigation against the tobacco
trust. in addition, he adds, many cor
porations have corrected faults pointed
out by the bureau, and In other in
stances the country has been given in
formation for the basis OF a construc-
tive pOliCN I'm DEALING with aconnp,ic