The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-03-26

Competition to be Retained, 3
Finally it should be appreciated
that the proposal to permit coopera-
ton will not lessen the incentive for
the highest efficiency in production
and in service. This is well illustrated
by the conditions existing with the
railroads at the present time. AS has
already been pointed out. all The rail-
roads between Chicago and New York,
for any given commodity under the
same conditions, have the same rates:
However, there is he Genes COM
petition among them to secure busl-
ness. Also there is effort at all
times to increase the efficiency of
their management. The reason Is
plain. The road which secures the
most business will be the most pro-
ftable; in order to SeCure business a
road must furnish the best of service;
the company which secures the big
gest share of the business and is
most efficient will have the largest
profits. That the condition described
corresponds with the facts Is evident
when one thinks of the competitive
contest between the New York Cen
trail and h Pennsylvania systems.
Precisely the Same conditions will
apply between cooperating industrial.
w BdIlGdLiuhS "uBu tuGLE pEtlLE W.
not go into a common reservoir, but.
are divided among their respective
stockholders.
| Therefore there will continue to . be
every incentive for lowering cost Of
production in order to get larger pro-
Ats. II, at any time profits Of the CO.
operating concerns become
ably large, then the trade commission
may intervene to protect the public
against excessive charges.
Conclusions.
The foregoing discussion leads To
the following conclusions:
/. The Sherman Act has been USE
full in preventing unfair practices and
furnishing those who INDUCED in
them: and its influence in this field Is
likely 10 become much greater in the
future than in the past. ManifestIy
the act should not be modified so as
to interfere with its efficiency In
this respect.
2. The Sherman Act was useful as
a club to prevent a general advance
Of freight rates, before the enactment
Of the clause which gave the Inter-
state Commerce Commission authority
to suspend proposed advances pending
investigation.
3. But the most important effect OF
the Sherman Act to the present time
has been the acceleration of con-
centration of industry by driving
organizations from the pool to the
trust, from the trust to the holding
corporation. and from holding corpor-
alton to complete merger, an effect
the very opposite of that intended by
those who favored the passage Of the
law.
4. No advantage has been shown.
nor Is likely to be shown from dis
solution Of public utility corporations
under the Sherman Act, which are al
ready under the control of the COM
Missions, state n national. These
are illustrated by the American Tele-
phone and Telegraph Company. the
Union Pacific-Southern Pacific merg-
or, etc. On the contrary there is
every likelihood that the public will
suffer from dissolutions Of o~rganiZa-
tons of this class. The above state
ment does not necessarily include
lines of business of a n~on-public utili-
ties nature which may be owned on
controlled by a public service corpor-
| alton. ID
s. To the present time it cannot
be shown that any advantage has ac-
crued to the public from the disip-
tegration Of such industrial organiza-
tons as the Standard Oil Company,
the American Tobacco Company, etc.
l w Al4t0 IAAC " AAGLLS 4 IpL "IkDlIS x
cisive, it's weight is rather that tho
public has suffered from their dissolu-
ton through increased prices.
6. The foregoing conclusions, COM
bined with other facts, lead to another
direction than d~isintegration as the
solution Of the difficulties which have
arisen in connection with ~concentra-
ton of industry; that solution lies
along the following lines:
| a Tbpra ghOuIi ho rreofe5 fnf0F%
state and state trade commissions
which should have powers in regard to
those industrial organizations so large
as to be affected with a public interest,
and in regard to those which by COR
poration control the market. similar
to those which the national and state
| public utilities commissions have in
regard to the public utilities.
b. The Sherman Act should be
| supplemented by another act, which
shall forbid all combinations and o
tracts in restraint OF trade which are
detrimental to the welfare Of h peo-
pie and which shall make the pre-
sumption that all such combinations
and contracts are thus detrimentafs
but permit the trade commissions to
allow such reasonable contracts n
combinations in restraint of trade as
are not inimical to the welfare OF the
people. h"
Z. This program to create inter-
state and state trade commissions and
permit reasonable cooperation will re-
| suit in the following benefits:
a. The efficiency which goes with
Industrial magnitude will be securable
and the resultant profits may be fair
ly distributed between the producer
I'M the -
b. The farmers cooperative move$
ments will become lawful.
c. Labor organizations will be
free to act in all legitimate ways.
d. Exploitation OF the natural
| resources nay be carried OH in har-
mony with the principles OF conserva-
| ton. H. - -H..
/ echo the hope expressed. by Presf-
dent Wilson that the time has now ar
I rived when those interested in large
business and the representatives OF
| the people will consider the trust
problem with mutual f~orbearance in
an honest search for a just solution
| reasonableness," it cannot be doubted
that such a. solution will be found. In
la country, the rich of which
I vastly surpass those of any other, this
cannot but result in general pros+
perity; and especially will this be
true for those who belong to the low
err financial ranks. ! say lower finan-
cial ranks; for in the latter group
are found the vast multitude Of peo-
pie which because of their number
include the great majority Of the
highest ranks in the nation from the
intellectual and moral points OF view
I confidently look forward to a new
era OF social responsibility on the