El Paso herald. (El Paso, Tex.) 1901-1931, 1913-12-16
Secretary Redfield Pre-
sumes that AL Restraints
Are Unreasonable.

Washington, D. c., Dec. 16.-Besides
disclosing plans for an extensive in
vestigation into the economic features
Of the trust problem. secretary Red
field, of the department of commerce,
in his first annual report recommends
legislation to presume that all re-
straints of trade are unreasonable ana
to place the burden Of establishing the
reasonableness Of the restraint upon
the person alleging it; to prohibit in
terlocking directorates; to prohibit
watering" of stocks, and to prohibit
CORPORATIONS and persons from owning
stocks in or controlling competing com
panies.
second only in interest to Mr.. Red
fields views on the trust question, are
his plans for developing trade Of the
United States abroad by reorSan1Za-
ton of the bureau Of foreign and do
The trust question, and the work
laid out for the bureau Of corpora
tons, which will range from an IN
vestigation of whether trusts are ef-
ficient to a study Of the economic
laws governing the fixing of retail
prices. bears an important relation TO
president Wilson's legislative program
Secretary Redfield discusses it eXhaus-
lively and substantially outlines his
views as follows
There is growing question in the
minds of experienced and thOughtfuI
men as to whether the trust form Of
organization is industrially efficient
and whether bigness and bulk are al
WAYS necessary TO production at the
lowest cost 1t may be conceded that
massing of capital and the grouping
Of great quantities of labor have GER
tain elements of efficiency But 1t is
doubtful, at best, whether these favor
able elements are all the factors that
exist and whether there does not come
a point of maximum efficiency at min
imum cost beyond which an increase Of
product means an increase OF cost per
unit of that product
Significance In Decreased Operations.
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 side
by side with the most mighty and sup
grown up Independent organizations
quite as successful and perhaps earn
ing even more upon their capital than
their powerful competitors.
There is no criticism here of big
business as such, but merely the ques-
ton as to whether big business has
not its marked limitations and whether
there are not cases where bigness is
rather less desirable than efficiency.
Fixing of Retail Prices.
Some men, well informed. argue that
the fixing Of retail prices under con-
ditiOns where competition in manufac-
ture exists, tends to promote COMPETE
ton Others say that the refusal to
permit the fixing Of retail prices tends
to monopoly because in the cut throat
competition certain TO follow obviously
the stronger competitor viii survive
and may eventually have the business
in his own hands, for the law fOrbids
the making of agreements to maintain
prices, and under these circumstances
the weakest must go to the wall.
That there are immediate and well
known conditions that should and can
be remedied by law is apparent Some
Of these remedies are, for instance, a
law providing that there shall be a
presumption that all restraints Of trade
are unreasonable, and placing the bur-
den OF eSta bllShing the reasOna bleness
OF such restraint upon the party alleg-
ing it; legislation preventing the water
ing of 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 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"
Outlines REORGANIZATION Plans.
Secretary Redfield outlines his plans
for a reorganization Of the bureau Of
foreign and domestic commerce:
Our foreign commerce has grown until
during the fiscal year ended June so,
1913. # reached the great total Of
S4,279, 100000 in value. Of this great
sum S2466,O00,00O were exports and
S1,813, 100000 were imports, showing a
trade balance on these transactions in
our favor of 1858, 000,0 900. It certainly
can not be said that the government
has done much to foster this great and
growing trade. In the estimates for
the coming fiscal year, therefore. a.
sum has been Included which will pro-
vide for the reorganization of the bu-
reau into such form as will make it
the basis for productive effort in de-
veloping American Industries in every
field which is normal to them at home
and abroad.
Briefly stated. the proposedS organ
izatfon provides for commercial at
taches to be located at each of IA can
italS accredited TO our embassi there
by the department of state, but report
ing directly to the department of com
merce. Their purpose will be to study
the commerce and industries of the
nations where they reside. They will
have no other duties. They will col
laborate with the consuls. having the
advantage of the larger view and of
the freedom from other cares.
1t is recommended that the consuIs
shall on purely commercial matters re-