The Bridgeport evening farmer., 1913-12-16

I Washington, Dec. 16.-BeSide dis l closing plans for an extensive 1nVes- 1 tigation into the economic features Of l the Trust, problem, Secretary Redheld l of the Department of Commerce in l his first annual reports recommends 1 legislation to presume that all re
 straints of trade are unreasonable and
 to place the burden of establishing 1 the reasonab1eneSs of the restraint upon the person alleging it; to pro hibit interlocking directorates; to pro hibit watering of stocks; and to prohibit corporations and persons
 from owning stocks in or controlling | competing companies.
 Second only in interest to MT. Red l fields views on the trust question, l are his plans for developing trade of 1 the United States abroad by reor- 1 ganization of the bureau of F,orelgn I and Domestic Commerce.
 1 The trust question, and the WorK 1 laid out for the Bureau of Corpora i tions, which will range from an in l vestigation of whether trusts are ef1- cient to a study of the economic laws 1 governing the fixing of retail prices, | bears an important relation to Pres 1 ident Wilson's legislative programme Secretary Redfeld discusses it ex- l haustively outlining his views as fol- 1 lows:
 1 seThere is a growing question in the l minds of experienced and thoughtful
  | organizafion is industrially efficient | and whether bigness and bulk are al ways necessary to production at the 1 lowest cost. It may be conceded 1 that rnassing of capital and the l grouping of great quantities Of labor have certain clements of efficiency
 But it is doubtful, at best, whether these favorable elements are au-In 1 factors that exist and whether there does not come a point of maximum l i,7il hPVOnd
 which an increase of product means
 an increase of cost per unit of that I product.
 Independents Growing. l .sIt is significant that some or the
 great trusts have ceased to ex1st' tnaI l others pay but moderate d1V1denos. II any. on their securities, and that side bv side with the most mighty ana, supposedly, the most efficient of them,
 have grown up independent organ izations quite successful ana per ] haps earning even more upon thelr I capital than their powerful eompet1- l tors.
 saThere is no criticism here of big business as such but merely the ques- ton as to whether s'big business has not it's very marked limitations and whether there are not cases where I efficiency
 +sThe purpose of the Bureau of Cor porations is to study patiently that we may know whether these bulky things that we have so much feared are in an economic sense real giants in strength or whether they are but images with feet of clay. There can be no objection on the part of any one whatever his views of industry, toward a study which shall determine the truth, which truth, if 1t be indeed The truth. must itself determine in 1xTSiS which the legal legislature and the execu- tive may wisely take concerning these
 matters
 Must Know Truth. seIt is important that we should
 know the truth about the fixing of retail prices and as to whether g1V- l ing the privilege of fixing the 1 prices to a manufacturer tends to- | ward monopoly or does not so tend Men who are sincere and well inform ed do not think alike on this problem, but, whatever their views, it will be | agreed that no thorough study has ! ever been made of the subject in this country Nations abroad are said to favor by law that which we forbid. eeThe law with is for the time fixed by the decisions of the Supreme Court that the fixing of retail prices on the part of manufacturers is un- lawful. If, however, new legislation
 should in the future be required, it is important that the truth be known lest injustice be done, not so much to the manufacturer as to the con sumer.
 .'Some men, well informed, argue that the fixing of retail prices under conditions where competition in man ufacture exists tends to promote competition. Others say that the re- fusal to permit the fixing of retail prices tends to monopoly because, in ca Tn follow, obviously the stronger com petitor will survive and may eventual
 ly have the business in his own hands,
 for the law forbids the making of
 agreements to maintain prices, and
 under these circumstances the weak
 est must go to the wall.
 "Such being the views expressed by | thoughtful men on a matter in which
 every consumer is interested because
 he must needs buy such articles, it is
 important that the subject should re-
 ceive thoughtful study, and this the | Bureau of Corporations purposes to | give to it.
 Urgent Need of Changes.
 ''That there are immediate and | weIl-known conditions that should l and can be remedied by law is appa- | rent Some of these remedies are |
 for instance, a law providing that | there shall be a presumption that all l restraints of trade are unreasonable, | and placing the burden of establish | ing the reasonableness of such re- | straint upon the party alleging it; | legislation preventing the watering of l stocks; that corporations shall not | hold stock in other competing com panies, and that neither a person nor a corporation shall at the same time own a controlling interest in two or more competing corporations, or that the officers of corporations shall not be affiliated directly or indirectly by. holding office in other corporations
 Congress will undoubtedly address itself to some of these aspects of the situation with curative provisions. Re F gardless of such legislation, however 1l.,r,,