Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-02-21
INVESTIGATION Of
M0NOPOLIES NOW
IS UNDER WAY
Corporation Commissioner Da-
vieS Reports That Inquiry
May Determine if Trusts
Contain Seeds of Decay

Washington Feb, 20-Docs the mo-
Hopolistlc system contain I'm itself the
seeds Of It's own decay
That question Commissioner Joseph
E Davies, Of the bureau OF corpora
tions, declared, in his annual report
made public today a federal inyesti-
cation now under way hopes to am
swer
IN review OF a working program
for the bureau Commissioner Davies
points out that aside from an econo-
mic study Of the trust question, re-
tail price maintenance is one of the
questions TO be taken up Trusts their
efficiency and reforms however, are
to comprise the principal work for
the coming year The need of some
federal body for the purpose Of in
Vestgation and publicity I'm trust af-
fairs whether II be the bureau OF
corporations as now organized, or a
commission as proposed In the pend
ing administration bills in congress.
Commissioner Davies emphasized.
In his report he discussed the mo-
nopoly question nc length, saying In
part.
THE question is whether the trust
form of organization is really eff
cient. II IL be found that smaller
competitive units Ia industry can pro-
duce commodities more cheaply, or
even as cheaply as monopolistic units.
ard that they have other and greater
advantages than those claimed for the
monopolistics or trust system, then the
problem is finally settled IN favor of
the competitive system. and the chief
argument for the regulation of mo-
nopoly rs destroyed. This is a scien-
title question Of fact and il Is the
plan Of the bureau to investigate this
question
while from governmental point
of view there are various aspects of
the trust question which are of great
Importance, such as the relation Of
trusts to popular government and
their effect on the social and econo-
mic conditions OF labor, there are two
aspects OF II which are peculiarly
within the domain Of the bureau.
namely. the effect upon the cost Of
production and distribution and the
effect upon the price to the consumer
IT Is commended by some that with
the increase in tho size of Industrial
enterprises there goes reduction ina
the cost Of extraction manufacture,
and distribution, and that such reduc-
ton In cost Is accompanied by lower
prices TO the consumer and does not
involve reduction IN wages or an
impairment OF the conditions Of labor
Even ii these claims were true the
question would still remain, Of course.
whether the evil resulting from large
combinations would not be greater
than the alleged advantages of
cheaper production and distribution.
1t is commended, ON the other hand.
that the source and origin of monopoly
is found chiefly IN the desire TO eX-
ploit the general public by stock
johbing schemes for the immediate
profit ef the promoters, or for the
purpose of obtaining control of the
market and exacting unduly high
prices from the consumer.
Many large combinations have
failed and demonstrated their econo-
mic inefficieney Combinations which
have obtained control Of the market
and IL is admitted. have prospered
but this is alleged 10 be due TO their
position, and not to SUI
perior efficiency According TO those
who hold this view. there is point
beyond which the increase in size of
operations does not result in an in
eroase In economy and efficiency, but
rather In loss and waste. so that the
maximum efficiency is not attained
by large combinations but instead by
concerns of moderate size. If this lat
ter contention be true. then, as has
been said the monopollstic system
contains in itself the seeds of it's own
decpy.
Again, some of those who dispute
The superior efficiency OF large CONF
bnations contend that this claim is
made merely as a blind for the pur-