Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-28
By WILLIAM RANDOLPH HEARST.

By WILLIAM RANDOLPH HEARST.
(From Hearsts Magazine, December, 1919
tn HERE are two compelling reasons
for careful thought and intelligent
legislation in regard TO combination.
One reason is found in the fact that
combination lie continually increasing in
spite Of the utmost efforts OF It's opponents
to end It.
The second reason is found in the fact
that combination displays quite as den-
mite advantages az disadvantages, and the
necessity for preserving those advantages
Ia as urgent as the necessity for elimi-
mating the Disadvantages
The advantages Of combination are the
advantages OF better organization, more
effective operation and cheaper produc-
tion
The disadvantages Of combination arise
mainly from the misuse OF the power OF
combination, which has developed into
monopoly
H. then, combination is inevitable and
in the main desirable, we must by care
full thought discriminate between the ad-
vantages and disadvantages of oon,bina-
ton, and by Intelligent legislation permit
the lestimste development Of the advan-
taaes Of combination and prevent the mis-
use Of the power of monopoly.
The growth Of combination along harm
full lines OF coercion and oppression, or
along even the legitimate and beneficial
lines OF natural development is likely
eventually to result in monopoly.
AS matter of fact, the ultimate aim
OF combination usually is virtual monop-
oily, and Trust may be described as
combination that has reached the stage
OF virtual monopoly.
The conspicuous evils Of the Trusts are
oppression of employees, coercion Of
agents and competitors, and extortion
from the public
Another evil OF Trust conditions is the
capitalization Of the power to Cypress, to
coerce and 10 extort.
An essential and initial step In tho
movement to remedy Trust evils Is the
prevention Of oVeroapitaization, which In
way stimulates and necessitates trust
oppression, coercion and extortion.
A Trust that oapitallzes it's monopoIls-
ito power to overwork and underpay its
employees must over~ork and underpay
it's employees in ordor to pay interest on
it's capitalization.
Trust that oapitalizes ts metropolis
tic power to ooeree lite agents and lts ri
walls must eoeroe It's agents and It's rivals.
Trust that capitaIizes it's noropoIls-
tic power to extort high prices will and
must practice its nnonopoIistio power to
extort high prices.
capitalization Of Trust matters. then. is
one Of the abuses OF the Trusts and one
of the incentives to Trust abuses
But there is an evil even more threaten
ing than the capitalization Of the Trust
power to coerce and extort, and that IL
the capitalization OF this power.
A Trust that ospitaIizes it's power to
ooerce and extort Is an evil; but Trust
which overospitazes these powers Is a
swindie.
Trust that is capitalized beyond the
value OF It's properties Is capitalized for
purposes Of coercion and extorton, but a
Trust which Is capitalized even beyond
the value of lite monopoIistio powers to
ooeroe and estort Is overoapitaIized for
the purpose OF swlndlns the public, and
will Inevitably swindle the public.
The only way to prevent the evil and
Inevitable results OF illegitimate cspitan-
aation of this kind Is TO prevent this kind
OF iHesitimate capitalization.
GOVERNMENT SUPERVISION NEEDED.
Either the continued existence or the
collapse OF such a Trust Is a calamity
and the punishment OF its promoters, de-
slrable as that may be- Is not 30 much a
requirement as the prevention OF the
formation OF such enterprises.
Both the capitalization of the power TO
plumber and excessive capitalization for
purely speculative purposes can be pre-
vented and must be prevented.
To prevent Legitimate and injurious
overeapitalizaton. as many corporations
as possible, and all corporations " pos.
sihe, should be induced to submit their
pima Of corporation to governmental au.
thority.
This governmental authority. in the In
terests OF the investing public and in the
interests of the consuming public and IN
the interests Of sound business methods
and stable business conditions should
compel every corporation to capitalize