Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-07-04
Regarded as Certain Senate
Will Authorize Investigation of
''Unfair Competition"
CANVASS OF COMMITTEE
THAT REPORTED MEASURE
Amendment by Senator Newlands to
Legislation Creating Trade
Commission.

IL seems to be certain that the much
discussed fifth section of the Newlands
trade commission bill. providing that
unfair competition shall be unlawful
and that the commission shall determine
what is unfair competition and order 1t
stopped. will remain in the BILL A can
vass of the Senate interstate commerce
committee, which reported the bin,
shows that only one of the democrats
voted against this section in the COM
mittee, and that he has changed his
mind and decided to support the sec
ton, provided it is made clear that the
courts are to have the final decision in
all cases of unfair competition.
The language of the section may be
modified in some respects, but the prin-
tfple contained in the section will stay
In the measure. A number of the re-
publican senators also will support the
section, including Senator Cummins
of Iowa, a member of the committee.
who defended the section in an address
to the Senate this week
Senator Borah's Objections.
Senator Borah of Idaho has been one
of the chief opponents of this section
of the bill. He attacked it again yes
terday afternoon, declaring that he
considered ii a mistake to attempt to
add to government by commission" in
this country. He insisted that the real
test of regulation by commission
would be the long awaited decision of
the interstate commerce commission
in the freight rate advance cases now
pending before the commission.
The railroads say that they must
have 5 per cent advance in freight
rates or they cannot do business; the
people of the country say they. can
not afford this increase" said Senator
Borah. 1T will be real test of regu-
lation.
within ten years we will face the
question of public ownership of rail-
roads, because of the breakdown of
regulation. 1t seems that we are ap-
preaching a condition that no commits
sion can meet.
We are nearer public ownership now
than ever before, and we are nearer
it because capitalists say they do not
propose to invest their money in en-
terprises which some one else controls.
That is one reason, the railroads say.
they cannot get capital at this time
Senator Borah urged that the Sher-
man antitrust law compels COMPETE
ton. while the proposed law will make
some forms of competition illegal. He
did not defend unfair competition, but
insisted the ultimate result of the pro-
posed law would be to provide a buffer
against the enforcement of the Sher-
man law.
Reply by Senator Newlands.
Senator Newlands, chairman Of the
interstate commerce committee. has
supported the fifth section of the bill,
and in reply to some of Senator
Borahs structures he said. in part:
The senator has presented with
great force the fact that under the
Sherman law we have commanded the
business of the country to compete.
Competition is war. There may be
brutal warfare and there may be civ
ilized warfare. So, with reference to
competition. there is brutal competi-
ton and there is civilized and fair COM
petition.
The senator says it is difficult to in
clude in any phrase of moderate length
a rule that will embrace all unfair prac-
tees. So it is. But shall we abandon
the attempt altogether. then. to civilize
competition or shall We adopt phrase.
a rule. which will constitute a standard
of action for enforcement by u COM
mission organized by Congress to carry
out as its servant its constitutional power
of regulating commerce?
Unfair Competition Multiform."
1T seems to me that it would be folly
for us to attempt to define each practice
so as to cover the field. because we have
the testimony of experts in business that
unfair competition is SO multiform that IL
we condemn twenty practices today TWEEN
ty more will be invented tomorrow. So
we must have some general rule
Senator Newlands, while admitting that
combinations had gotten rid of much
brutal competition, declared that they
had accomplished this end by creating
monopoly.
I'VE wish to get rid of it. not by Great
ing monopoly, but by establishing fair
competition that is in accord with the
moral law said Senator Newlands, and
We will condemn every practice in bust
ness that is against good morals"