Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-12-19
Draws Trust Rein.

of the trust problem, Secretary Redfield, of
the Department of Commerce, in his first
annual report, recommends legislation to
presume that all restraints of trade are
unreasonable, and to place the bunden of
establishing the reasonableness of the re-
straint upon the person alleging it ; to pro-
hibit interlocking directories to prohibit
watering" of stock. and to prohibit cor
pOrations and persons from owning stocks
in or controlling competing companies.
Second only in interest to Mr.. Redfield's
views on the trust question are his plans
for developing trade of the United States
abroad by a reorganization of the bureau
of foreign and domestic commerce.
The trust question, and the work laid
out for the bureau of corporations, which
will range from an investigation of whether
trusts are efficient to study of the eco
nomic laws governing the fixing of retail
prices, bears an important relation to Presi-
dent Wilson's legislative program. Secre-
tary Redfield discusses it as follows:
There is a growing question in the
minds Of experienced and thoughtful men
as to whether the trust" form of organi-
cation is industrially efficient and whether
bigness and bulk are always necessary to
production at the lowest cost.
1T is significant that some Of the great
trusts have ceased to exist that others
pay but moderate dividends, if any, on
their securities. and that with the most
mighty and supposedly the most efficient
OF them have grown up independent Or
CARNATIONS quite as successful and per-
haps earning even more upon their CAPT.
tai than their powerful competitors.
THE purpose of the bureau of corpora
tons is to study patiently that we may
know whether these bulky things are in
an economic sense real giants in strength
or whether they are but images with feet
of clay.
1T 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 manufacturer tends
toward monopoly or does not so tend
Men who are sincere and well informed
do not think alike on this problem.
THE law with us is for the time fixed
by the decisions of the Supreme Court
that the fixing of retail prices on the part
of manufacturers is unlawful. If, however
new legislation should be required, it is
important that the truth be known lest
injustice be done, not so much to the man.
ufacturer as to the consumer.
That there are immediate and we'll
known conditions that should and can be
remedied by law is apparent. Some OF
these remedies are. for instance, law
providing that there shall be presump.
ton that all restraints of trade are unrea.
sonable, and placing the burden of establish
ing the reasonableness of such restraint
upon the party alleging it; legislation pre-.
venting the watering of stocks; that cor.
pOrations shall not hold stock in Other
competing companies, and that neither q
person nor corporation shall at the same
time own controlling interest in two OF
more competing corporations, or that the
officers of corporations shallnot be affiliated
directly or indirectly by holding office in
other corporations"
Secretary Redfeld outlined his plans fo
n REORGANIZATION Of tho b,rao,, rf roro;a,
and domestic commerce as follows:
Our foreign commerce has grown b,
leaps and bounds until during the fisca
year ended June 80. 1918, it reached tn,
great total of $4,279,000,0OO in value. o
this sum $2.466,OO0,0O0 were export
and $l.8l3.000.000 were imports. show
ing trade balance on these transaction
in our favor of $653,0O0,000. 1t certainl!
cannot be said that the government ha
done much to foster this great and grow
ing trade. In the estimates for the com
ing fiscal year. therefore, sum has beef
included which will provide for the re
organization of the bureau into such form
as will make it the basis for productiv,
effort in developing American industries
in every field normal to them at home AM
abroad.
THE proposed organization provides fo
commercial attaches to be located at eacl
Of fourteen capitals accredited to our EN-
bassies there by the Department of State
but reporting directly to the Department
Of Commerce. Their purpose will be t
study the commerce and industries of tn
nations where they reside.
1T is recommended that the consul
shall on purely commercial matters repor
directly to the Department of Commerc
and that they shall cooperate with tn
commercial attaches in presenting between
them a complete and unified knowledge o
the commerce and industries of our grea
competitors.
1T is intended to enlarge the force @
commercial agents, which is composed @
special investigators trained in their sep
arate lines Of study. each pursuing som
special theme and for that purpose travel
ing from country to country wherever in
formation on that subject can be haC
For this purpose a special appropriation
Of 100000 is asked for the study of com
mercial conditions in South America.
I'VE have spent several hundred mil
lions preparing the Panama Canal. an,
the nations Of the world have been gettinI
ready for its use while we have done al
most nothing actively to promote the com
merce which should repay the nation, il
part at least. for this vast outlay.
1T remains to state but one further poin
Of important policy that the department
desires to carry out. It wishes to supple
ment the inquiry now drawing to clos
into the cost Of production in the potter,
industry by undertaking an inquiry int
the cost of production Of clothing of al
kinds, and Of different materials. including