The Detroit times., 1914-11-17

restraint OF trade.
Two years ago In my book, Con
centration and Control | advocated
the formation OF federal trades COM
mission. which should have power
somewhat similar 10 that OF the In
terstate commerce commission. The
idea was repudiated by both the old
parties. Today We have law provid-
Ing for that sort OF q commission. q
law passed by an almost unanimous
vote OF both houses OF congress.
Il am not q defender OF monopoly.
i do believe, however. that business
conditions would be benefited by add
ing 10 the Sherman law q clause con-
STRUNG a combination In restraint OF
trade as combination, the effects
of which are calculated to be detri-
mental to the purchasing public. De-
termination as to whether or not any
given combination Is detrimental to
the consumer should be left In the
hands of the federal trades commits
sion, Just as the question OF whether .
2. IL or Scent rate OF fare 10 just
for the railroads Is left In the hands
OF the interstate commerce commits
sion. There il q vast difference be
tween combination and monopoly
which the average citizen does not
attempt 10 ascertain.
Now, as to the effects Of the Clay
ton law which. as said. aims to sep
arate a combination into its compo-
nent parts. Suppose II IL put into
operation. We have q deadly paral-
lei in the Standard Oil company. which
was divided into the 33 companies
from which II was originally formed.
The courts had the power to compel
the setting up of the original COM
panies, but II had no means of put
ting them into competition with one
another. Instead Of benefting the con-
sumner by lower prices because OF the
natural regulation of competition. the
move really injured the public be-
cause prices, until the outbreak OF the
war In Europe, were generally high
er than before.
Competition as q regulative factor
Is q thing of the past. The tendency
toward cooperation Is much stronger
than that toward competition, as any
one can see. II In easier and safer
to maintain q stable price for q staple
article, assuring fair margin Of prof
II. than to cut the price to the lowest
possible margin OF profit, and perhaps
loss, In competition. Easy means OF
Communication also aids this natural
community OF interests.
I'm short, my theory for antitrust
legislation is the substitution OF reg
ulation for competition. In this way
monopoly may be prevented and
constant level of business of healthy
nature kent I'M
1T would be presumptuous for me
to declare that the Clayton law IL q
failure, because have not had an OBJ
portunity to see how It II, going to
work out. The courts may construe
Il In such a way as 10 amend the
faults of It's theory, and II Ia to be
hoped that they will do So"
Prof. Van Hise Is thoroughly &C
ouainted with the trend Of modern
business and il considered an author
ity on economic problems. He was
chairman OF the legislative committee
OF the United States chamber Of COM
merce during the sixty-third congress
and has had an exceptional oppor
tunity to observe and analyze the ef-
forts made to counterfeit the monop-
olistic tendencies OF big business"
As the originator Oi the iuco VI ING
federal trades commission, Prof. Van
Hise is conceded to be an authority
upon the theories under which It
should be operated.
Among his published works relat-
ing to big business are "The Conser-
walton of the Resources Of the United
States" Concentration and Control
and "A Solution OF the Trust Prob
lem of the United States
Prof. Van Hise has been president
OF the University of Wisconsin since
1908, and q trustee Of the Carnegie
Foundation for the Advancement OF
Teaching since 1903.
In addition to being an authority on
economics, DIR. Van Hise has gained
an international reputation as writ
err and lecturer on geology.