The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-02-21
DOES M0NOPOLISTIC SYSTEM
: CONTAIN SEEDS OWN DECAY?

as monopolistic unite, and that they
have other and greater advantages
than those claimed for the monopolis-
tic or trust system, then the problem
is finally settled in favor of the COM
petitive system, and the chief argu.
ment for the regulation of monopoly
is destroyed. This is a scientific
question of fact, and it is the plan Of
the bureau to investigate this cues.
ton.
while from a 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 econom-
lie conditions of labor, there are two
aspects of it 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.
ut is contended by some that with
the increase in the size of industrial
enterprises there goes reduction in
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 a reduction in wages or an
impairment Of the conditions of labor.
Even IL 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 cheap
or production and distribution. It is
contended, on the other hand, that the
source and origin of monopoly is
found chiefly in the desire to exploit
the general public by stock-jobbing
schemes for the immediate profit of
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 econom-
ic inefficiency. Combinations which
have obtained control of the market
and it is admitted, have prospered,
but this is alleged to be due to their
monopolistic position, and not to SUI
perior efficiency. According to those
who hold this view, there is a point
beyond which the increase in size of
operations does not result in an in
crease 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
latter contention be true, then, as has
been said, the monopolistic system
contains in itself the seeds of its own
decay
Again, some of those who dispute
the superior efficiency of large com
binations contend that this claim is
made merely as a blind for the pur
pose of selling watered stock. They
say that such organizations. are estab
lished for the purpose of either get
ting control of the market and exact
ing excessive prices from consumers
or of issuing large amounts of wa
tered stock for the purpose of selling
such stock to the public. In the first
case, it is argued such combinations
are not concerned with the promotion
Of greater efficiency but merely with
obtaining monopoly; in the second
case they are chiefly concerned with
selling the stock, and as they can not
claim to the general public that il
has great value due to monopoly
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