The Canon City record with which is consolidated the Canon City cannon., 1914-01-29
THE annual report of Secretary
Redheld OF the department of
commerce throws the first defi-

| Redneld OF the department of
commerce throws the first def
mite light ON the present views
OF the administration In regard to the
regulation OF Industrial corporations
II contains suggestions which, 1t Is
believed. Indicate clearly the charac-
ter OF the program the Wilson admin
istration will recommend In Us efforts
10 have antitrust Legislation enacted
at this session.
Joseph a Davies, commissioner OF
corporations. is one OF the men with
whom the president has conferred In
regard to the antitrust program about
10 be introduced In congress.
Mr.. Davies also has conferred with
the leaders of congress- His recon-
mendations Incorporated In the report
Of the secretary OF commerce are there
fore regarded with significance.
The Indicated Program.
This Is what the report says on that
subject:
THAT there are Immediate and well
known conditions that should and can
be remedied 10y law is apparent Some
OF these remedies are. for Instance.
law providing that there shall be
presumption that nil restraints OF
trade are unreasonable and placing
the burden Of establishing the reason
abieness OF such restrain upon the par
ty alleging IL; legislation looking to
fundamental charter provisions for ev-
cry corporation doing lnterNate busi-
ness: that stocks and boad1knhail not
be issued except for money or prop
erty mt its true money value. prevent
ing the watering Of stocks: that cor
porations shall not hold stock In other
competing companies. and that neither
n person nor n corporation shall Mt the
same time own a controlling interest
In two or more competing corporations.
and that the officers OF corporations
shall not be affiiiated directly or indi-
rectiy by holding ofice in other cor
porations."
That the above reflects the admins
tration's program seems to be further
indicated by the following from Sec
retary RedAeld's report:
Congress will undoubtedly address
itself 10 some of these aspects OF the
situation with curative provisions"
Governments Ultimate Attitude.
The report goes on:
"gesarsiisss of such legislation. how
ever. there still remains n fundamental
economic fact TO he detcrmined-fo
wit: Whether the trust or monopoiist-
ic form is socially and economically
efficient IN productlon. as X alleged
and upon the solution Of this problem
81. IA. ftf
the government toward cunbination~
and consultations IN business
1T Is coniendrd hy some tir,t with
the increase In tue size ~ Industrial
enterprises there snes REDUCTION In
the cost Of extraction minufncture
and distribution. and tliai such reduc
ton In cost Is accompanied by lower
prices 20 the consumer aud does not
involve n reduction IN wages or nm i'm
pairmcnt OF the conditions ~ labor
Even II these conditions were true
the question would Kill remain. or
course. whether the cyil resulting from
large combinations would not be great
er than the alleged advantagcs OF
cheaper production
at Is contended. on the other hand.
lUftt lDt HbuTft uiib bN ulVibtftfF
Is found chiefly In the desire 10 exploit
the general public by stock jobblng
schemes for the Immediate profit OF
the promoters or In the purpose 10 Mt
tain control OF the market and exnct
unduiy high prices from the consumer.
MANY large combinations have dem
onstrated their economic efficiency
Combinations which have attained
control OF the market. II j. admitted.
have prospered. hut this may he due
TO monopolistic position ruthcr than
to superior efficiency
According 10 this view there II n
point beyond which Increase In size
does not result In increase in cfiicicn'
| cy. but rather In loss and waste. 10
TINT the maximum efficiency IL not at
tained 10y large combinations. hut by
concerns OF moderate size
III this latter contention tie true.
then. MS hns been snid. the monopoiis-
tic system contains In Itself the seeds
OF its own decay. and the proper atti-
tude OF government must be reguin-
ton of competitive conditions and pot
regulation OF monopoistic fnctorr."
The report urges an Investigation
By the bureau Of corporations %