Valdez daily prospector., 1914-06-04
Administration Big Combinations: Inquiry Into Economic Value of Trusts and Retail :,
 Price Fixing.

throw light on this big question. Sec retary Redfield advocates an appropri ation of $751; for this inquiry into the efficiency of industrial combina. tions. He says:
 Tt is deemed desirable that the bu' reau of corporations shall undertake a study of certain fundamental eco homie laws on which all our indus. tries are based. There is a growing position in the minds of experienced and thoughtful men as to whether the trust form of organization is indus. trially efficient and whether bigness and bulk are always necessary to pro duction at the lowest cost
 Tt may be conceded that massing of capital and the grouping of great quantities of labor have certain ele. ments of efficiency. They permit re. search on large scale. They do away with excessive expense in the maintaining of separate offices and numerous sales organizations. They provide means for the purchase and use of apparatus that can only be em. ployed where production is large.
 "All these things and others like them are unquestionably true and ac. count for much that has been done in promoting the great industrial combi nations that are 50 largely discussed among us. But it Is doubtful at best whether these favorable elements, are all the factors that exist and whether there does not come point of maxi. mum efficiency at minimum cost be yond which an increase of product means an increase of cost per unit of that product.
 Significant Events"
 Ut 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 posedly the most efficient of them have grown up Independent organizations, quite as successful and perhaps earn ing more upon their capital than their powerful competitors.
 Furthermore. it is undoubtedly true that many of the most profitable busi- nesses in the country are those of moderate size and that this is so even in lines where large concerns exist of apparently less earning capacity.
 There is no criticism here of big business as such, but merely the ques' ton as to whether big business has not its very marked limitations and wheth- CT there are not cases where bigness is rather less desirable than efficiency"
 Fixing of Retail Prices.
 Secretary Redtield declares that it 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 manufac- turer tends toward monopoly or does not so tend. On this point he says:
 Men who are sincere and well in. formed 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.
 "The law with us is for the time fixed by the decision 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 1t is important that the truth be known lest injustice be done. not so much to the manufacturer as to the consumer.
 Some men. well informed. argue that the fixing of retail prices under conditions where competition in manu- facture exists tends to promote con- petition. 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 will 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 cir cumstances> the weakest must go to the wall.
 "Such being the views expressed by thoughtful men on matter in which every consumer is interested. because he must needs buy such articles. 1t Is important that the subject should re- ceive thoughtful study. and this the bureau of corporations proposes to give to it. r
 An inquiry into the cost of produc- 1 ton of clothing also is advocated by Secretary Redfeld. aas,r, r,.rnnv nr cllAl conTc