Semi-weekly herald., 1914-06-29
REGULATED COOPERATION
URGED AS TRUST SOLUTION

URGED AS TRUST SOLUTION
ROCHESTER, N. Y, June 2S.-
Retention of competition, prohibition
of monopoly, permission for co-opera-
ton of the latter, instead Of regulat-
ed competition or regulated monop-
oily was suggested today as the solu-
ton of the trust problem of the coun-
try by President Charles r. Van Hise,
of the University of Wisconsin, in an
address at the annual meeting of the
National Association of Credit Men.
"There may be great magnitude Of
business, and not monopoly" declared
President Van Hise. Indeed it is
believed that by far the greater num-
ber of the large organizations fall
short of monopoly. Only if we as
sume that if all the great combina-
tions of industry are monopolies, does
the conclusion follow that they should
be destroyed. Not only do I hold
that not all large business is monop-
olistic, but that concentration up to O
certain point is to give efficiency.
"If we retain freedom of competi-
ton, permit concentration sufficient
to give efficiency, allow reasonable
cooperation, and prevent monopoly
this will require regulation just as
it has been necessary to regulate the
railroads. This done, the Sherman
law will be- forgotten. Has there
been any prosecution of the railroads
for violation of the Sherman law be.
cause of collusion in fixing rates ?
And yet everyone of US here knows
that they are just as fragrant, viola.
tors of the Sherman act as any othe,
class of corporations in the United
States. Are the freight rates tht
same for different roads between any
two points? Are the passenger rate.
between New York and st. Loui,
identical on all roads? Can you d.
better in price by travelling over tn,
Pennsylvania than over any Other
road? The rate is the same provid
ing the speed is the same.
"For number of years it has ap
peared to me that the interstate com
merce commission and the numerou.
state commissions having the contro
of public utilities and the pure foot
commission clearly point the way foI
the next step in the solution of ou
industrial problems.
"The most fundamental differenc,
between the United States Steel Cor
poration, the Standard Oil compan,
and other very large businesses ant
the, public utilities is that one clasl
has been declared to be vested will
a public interest and the other shoult
be subject to control. Not only SO
but wherever different companies o.
groups of companies cooperate s,
that they control the market for an,
article, their transactions becom,
vested with public interest.
"An interstate trade commits sioi
should be created for interstate com
merce and state trade commission
for state commerce, each to have con
troll over business which is veste,
with public interest or in which tn,
market is controlled, precisely as tn,
| public utilities commissions have con
troll over the public utilities. 1t il
to be noted that this proposal doe
not imply that the administrator com
missions shall have control of al
business, but only business which, be
cause Of magnitude, or because of co
operation, become vested with publ,
interest. The initiative in control o.
business will remain with the bust
ness organizations precisely the sam,
as ut present; but whenever an or
ganization performs any act, which
in the opinion of the appropriate com
mission under the powers granted /,
contrary to the public interest, tha
body may intervene. My proposal 1.
that the restraint Of trade, either by
combination or contract, and COOP
Grafton in limitation Of output, divi
sion or territory, or fixing Of prices
be prohibited SO far as they are in.
imical to the welfare Of the public
Not only 80, but 1t may be wise te
make a presumption that actions OF
corporations along the above line are
inimical to the welfare of the public
until approved by the commission
But when any act Of cooperation
has been approved by the commission
it should be free from attack. By
this simple expedient the situation
becomes cleared. Cooperation for
all classes Of business would be al.
lowed to continue. 70 far Is it was
not inimical to the public welfare"