Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-02-21
BELIEVES MONOPOLY Plan
!. DYING OF SELF DECAY
and the egect upon the price to. the

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consumer.
1T Is conteaded by some that with
the increase in the size Of industrial
enterprises there goes q reduction
In the cost Of extraction, manufac-
ture, and distribution, and that such
reduction In cost is accompanied BIZ
lower prices to the consumer and
does not involve a reduction. III the
wages or an impairment OF the con.
altion Of labor.
"Even il these claims. were true
the question would still remain, al
course, whether the evil resulting
from large combinations would not
he greater than the alleged advant-
ages Of cheaper production and dis.
tributiOn. 1t is contended, on the
other hand, that the source and orr.
gin of monopoly is found chiefly in
the desire to exploit the general pub:
lie by stock johbing schemes for the
immediate profit of the promoters,
or for the purpose Of obtaining cor.
troll of the market and exciting 2un-
duly high prices from the consumer.
"Many large combinations have
failed and demonstrated their ecOno.
mic i%neficiency. Combinations whicn
have obtained control Of the market
and it is admitted, have prOspered,
but this is alleged to be due to their
monopo.istic position, and not to
superior efficiency According to
those who hold. this view, there is a
point beyond which the increase in
size of operations does not result. in
increase in economy and eficien:
cy, hut rather In loss and waste. so
that the. maximum efficiency 8 not at;
tanned by largo combinations, but
instead by concerns OF moderate
If this latter contention be
true, then, as has been said, the mo.
nopolistic system contains in itself the
seeds of its own decay. T.
Again some of those who dispute
the superior efficiency Of large com.
binations contend that lnis claim. is
made merely as a blind for the, pur.
pose of selling watered stock. They
say that such organizations are es:
tablished for the purpose either Of;
getting control of the market and ex-
excessive prices 4fromHconsu.
mers, or OF issuing .arge amounts OF
watered stock for the purpose of sci;
ling such stock TO the public. In tic.
first case, it is argued such. :combina
tons are not concerned with the pro.
motion Of greater efficiency but mere.
ly with obtaining a monopoly, in the.
second, case they are e: iefly concerned
with selling the stock, and as they
can not claim to the genera! public
that it has a great valtie due to mono
poly, they, are obliged. TO- find anOthia
er selling argument. namely, superior
efficiency. 4
"Of almost equal importance with
the determination Of this question Of
comparative efficiency IS that OF the
price policy Of such large industrial
combinations as have achieved a sub
stantial control of the market Those
who allege that such industrial en-:
result in greater economy
and efficiency in production often ov:
erlook the equal important. question
whether or, not they tAksorb,lall the
benefits Of SUCH economies In" ihcreas.
ed profits without aeonceding any
share thereof Of labor%.in higher wag.
es, or to consumers in relatively low.
cr prices or improved qua'ity'of goods,
etc. The determination Of the facts In,
respect to this question also. might
not be such" as to establish broad
generaliza Ions or conclusions mut
importance Of having the facts
Is one the less obvious"