American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-03-19

This condition is so widespread and so serious that IL CAN
not continue. +his oon-
Of course, in the past men tried to overcome Inio ~
d;t;on bv making nrice agreements, so-called gentlemen 5
agreements" combinations of manufacturers 10 hnlc pio
duction or to fix prices. These devices are properly con-
demned. They are neither for the good Oh business ~
the good of the community as a Wnole. lhey az
however, efforts-improper efforts, 1t may De true-IJ
cure a situation which exists and which must De cui1u
This situation would very properly ana enec. ,J y ym
cured by a publicity statute. BUSINESS men couu IL
rid their minds of all thought OF cong uSn" s;fnront;aIs
of making secret rebates, confidentlals, dIneren.aN
and other secret and discriminating prices "hdo oOo
business men are doing would be known; mlsreprsS1 TIC \.
ton could not be made; distrust would be enmlnaOeu' inoI
competition could be fair and could produce enecCiVe anu
satisfactory results. Men could then turn their atVen4
ton to the reduction of costs, to the ef1lcleht mdnase"0"
of their business.
Since the formation of large corporate enterprises
practically every effort that has been made TO increase Cne
difference between cost and selling price has been attend-
ed with effort to control the selling price. Ihese enorCS
have necessarily resulted in secret agreements, III Che
suppression of competition, in the limitation OF produc-
ton. in the fixing of prices. Furthermore, under a con-
dition of business that is based fundamentally upon COM
petition, they have inevitably resulted IN secret rebates,
discriminating prices and all manner OF tricks and under-
hand methods that are utilized by one competitor TO secure
advantage over another.
If we recognized that the essential thing from the
standpoint of business and of the community as a whole
was not to control prices, but to control costs; I a sltua-
ton existed under which a fair and businesslike policy
could De adopted DIV men engaged III UuSlueSo-d pOlCy
based upon full knowledge of facts and the fluctuations OF
supply and demand-our business would take a tremend-
Gus step forward. Then business men would not be on
the defensive before the law and the community. They
would not be distrusted and harassed by men and laws.
Under such conditions we would not view with con-
Germ the development of large corporations. If we knew
all the facts in regard to such comprehensive cost of
manufacture, the profits, and the methods that they en-
ployed against comprehensive would not take exception
to an efficient and well managed corporation merely be-
cause of its size. We would welcome concentration and
development so long as it produced economic efficiency
Where it was possible to secure better results by combina
ton and concentrated effort, this development would be
welcomed and facilitated to the utmost.
1t is not so much the size of large business that is
productive of evils as it is the uncontrolled secret power
that now concentrated in the hands of a few men who are
freed from ordinary restraint and control. Make clear
all the facts, establish the control OF public opinion, anC
establish also the fear of competition, and all occasion fol
alarm disappears.
From the viewpoint of the business man, therefore
full publicity of corporate affairs would have deep anC
far-reaching effects. On the one hand, competition
that now is largely dormant or misdirected-would have
an opportunity to become effective as a forceful regulat
ing influence. A fully informed public opinion woulC
5 establish standards of conduct. And the common know
p ledge of the true nature of business acts would force tn
5 observance in business of fundamental principles tina
heretofore have too often been observed only in privat
n life. Capable and honorable men would receive prope
= recognition and esteem, and would stand apart from me-
II whose sole claim to distinction was the making of none
by discredited methods. On the other hand, business
t would be conducted in a sound and efficient manner. be
l. cause a full knowledge of facts would make helpful tn
$ laws of supply and demand, because well managed com
1 panieS would secure the support of investors, and becaus
large-scale business could be developed to secure econom
of operation and production without danger to the com
9 munity. Unhampered by suspicion and distrust, bus
! ness men could properly develop the resources of GU
f country and bring us to a full industrial prosperity
: Idaho Falls Register.
a -O-
Referring again to cleaning up the town, we woul