The Washington herald., 1914-02-13
TRADE BODY
RECEIVES ENDORSEMENT
OF PROF. q. B. SEAGER


discussed by Henry r. Seager. professor
Of political economy In Columbia Univer-
sity, New York, was the interstate trade
commission bill. In recommending WHICH,
he said. President Wilson was voicins
the mature judgment of students Oh tne
trust problem.
"Nv plea is that with a trade commits
sion empowered to compel full publicity
of business operations and the law teit
as IL now is condemning not all contracts
and combinations in restraint OF compe-
| tition. but only those In unreasonapie
| restraint" said Prof. Seager. we shouIa
1 be able for the first time to test the reaI
merits of combination in the INDUSTRIES
where il is claimed TO be superior TO IN
regulated competition we nave oeen
able to make the test In the past oecsuse
unfair methods of competition have Deem
used and because the opportunity 10 reap
large returns at the expense OF so-caheo
| innocent investors has given an artinciai
turn to the whole combination move
ment. ,,
s,op TO the use OF unfair and discrimina-
tory methods by calling the attention OF
the Attorney General to them and rec
| ouuendipg him to begin prosecutions.
The publicity of financial operations
which II would require would curo the
activities Of the promoter, and the n'sn
6pancier. Monopoly achieved oy srunS'N
means still would fall under the con,
demnation of the law. There thus "ou'a
be srope only for restraints on compeu-
t,on which were believed by the trace
conmission and by the Attorney General
.c,ing upon its advice. to be reasono pie
in the sense that the BENEFITS they mis"e
confer on the parties TO the agreement or
understanding would be shared py '"e
whole community.
The measure against which pHi
| IarIy protest as unnecessary ana na,Ih.
IN, In the third bill, which underthkes
|. NO, only 10 make the punishment Tor Vio'
| Iation OF the antitrust act persohai' az
agree il should be, but also 10 oenne
the terms every contract, cornoinauoi
| in the form of trust or other"ise' any
conspiracy in restraint CT trade ana un'
word .monopolize.' in conformity WIN ."'
narroyest and most dogmatic conv'euoi
3 .h,, .verv departure on the part OF busi
ness men from unrcstrained compeuuoi
4 necessarily results in restraint oi oao'
Q and is therefore to be condemned.
Advance J.dsment Hazardous.
. ITO Judge in advance what interpreta
D ton may be given to the phrases OF .n',
!: bill would be hazardous. The nrs', seeon,
- ,hIrd lines of conduct condemned
: that Il. to create or carry out restrictioh
n in trade or to acquire a monopoiy IN an
r interstate trade, business or commerce
J. ito limit or reduce the production OF III
G crease the price of merchandise or OF an
| commodity and to prevent compeu,lo
in manufacturing. making. TRANSFORM, IN,
| selling or purchasing OF mercnaho,s' ~
e nroduc. or any commodity are probaoi
II ali fully covered by the present act
!, Involving unreasonable restraint OF cor
q petition or tendency to create monopoH
'e ..The fourth line OF action conaemhe
&c seems. however to go much farther.
% business men may not make any asre'
| ment. enter into any ARRANGEMENT,
:! arrive at any understanding~oS ~oS w.
=, they. directly or Indirectly uhoere
d preyent a free and unrestricted compe'
Il tion among themselves or among Al
p purchasers or consumers in the saie' pr
u duction or transportation OF any proouc
~ article or commodity without rehueih ~
N themselves liable to conviction lot c,n. ,
IN and to the severe penalties provioeu
10 the antitrust act. current me'nous
carrying on business In the uniteo ga ,,s '
te will indeed have to undergo mooic'
lit tion. Under such provision every u
he Outstanding between railroads conVesn
messengers or freight between TWO ciue
n invcIvinr uniformity of rates. would
nc a violation Of the antitrust act.
IS Policy Is Inconsistent.
e. .The truth is that our government
a. policy toward railroads and other cor
tie mon carriers long has been inconsister
.e- The amendment to the Interstate coI
ny merce act giving the Interstate Soi
merce Commission complete control oV
rates. supplemented ae 1t Is ABOUT
he by the proposed measure giving
: similar control over the issue of ne
securities, make the present restricuo
of the anti-trust act, as laid down In I
eP TRAFFIC Association cases. Illogical a
unnecessary. Any further restrictio
lrd would, in my Judgment be highly uno
ric sirable.
his II am one of the economists who thin
Ills 1.-THE distinction between the social
I'M. natural monopolies and industrial ent'
scd crises such ~ coal mining and iron