Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-10-31
Scientific Inquiry Into
Whole Situation to be
Directed by Wilson.
TO OBTAIN ALL FACTS
Not With a View to Disturbing
Business, but to Locate Pos
sibIe Troubles.

Atlantic City, n. j., Oct. 31.-The
beginning of a new scientific inyesti-
CATION of the Industrial situation, un-
der the direction of President Wilson,
which will contribute to the admins
tration's trust legislation program at
the session Of congress beginning Dec.
l, was announced here today by Com
missioner Joseph E. Davies of the
bureau Of corporations in an address
before the National Association OF
Hardware Dealers.
Whether a competitive system of
/ large units, or a monopolistic system
is the most advantageous to society
the question the bureau will attempt
to determine.
1T is characteristic of the quality
Of mind of the president OF the United
States that he should desire facts on
which to base his judgment" said
Commissioner Davies There is now
no governmental or other agencies en-
gagged in attempting to get scientific
information on this fact We shall en-
ter into this investigation with the sole
intent of working out in a scientific
and fair minded spirit the facts, abSo-
| lutely as they are. So vital and so
fundamental is this problem. that to
attack it in any other spirit would be
criminal. What is needed is light; not
heat. The problem bristles with diff
culties. 1t will demand an increased
appropriation from congress. The re-
Fsuits may not coincide with ar we.
hope to procure but We can, however,
obtain facts that will contribute to-
ward correct Interpretation OF indus
| trial conditions as they exist" 4
DEPENDS ON INVESTIGATION.
Commissioner Davies declared that
/ the ultimate solution of the trust prob
/ lem depended upon the determination
! of the question his bureau is about to
{ investigate. That, he believed to be
/ fundamental behind whether the
problem might be solved by amend
ments to the Sherman law; by an in
dustrial trade commission or by ac-
/ ton looking to regulation by the in
/ dividual states If the monopolistic
I system should be found to be most eff
cient there would still remain, he said,
in spite OF that fact a question wheth
er the government should maintain an
attitude against monopoly by reason of
other and greater additional evils il
induces.
Reviewing arguments for and
against monopoly, Commissioner Da-
vies declared that one of the chief
concerns OF the great body of people
for whom the government exists is,
which form of production, competitive
or monopolistic, can produce and sell
what the public buys most cheaply.
consistent with a fair standard CT
living for workers. He sketched the
business growth of the country and
the rise of the corporation.
within the last decade and half. -
said he, two hundred corporations
have come into property of more than
twenty-five billion dollars. Two hun
dred artificial persons own three times
as much wealth as the country owned
in 1850 That sum is three and one
half times as great as the public debt
The gross income of one of these arti-
fetal persons is equal 10 the total reye-
nue. of the government from internal
revenue and customs. Twenty-four of
these corporations have three and one
half times the gross income of the fed
eral government.
ECONOMIC RES oLUTIoN.
These facts are not cited as an in
dictment against the men engaged in
these enterprises, but simply to show
the way in which we are growing. The
period of greatest development in this
movement occurred in the face of the
Sherman law and prior to 1904 when
il was first sought TO be made an ac-
tive agency for the government
There has come an economic revo-
luton. The unorganized many are
demanding that law shall protect their
rights from the encroachment of the
organized few. Government or society
is concerned with these tremendous in
Gustrial units on several different an
giles. What effect have these gigantic
concentrations had upon the question
of representative government and its
perpetuity? Is there danger Of the
child becoming greater than the par.
, ent2 What safeguards must the sta.e
throw about itself so that powers O.
government may not be subverted By
the greed OF men and the inherent M
man selhshness2 An investigation onIy
. recently conducted by congress has
! given evidences of certain insidious
: influences that attack the integrity OF
! government itself
- Tne economic aspects of the prob
lem, the fair. just altitude OF the gov