The Topeka state journal., 1914-02-20
That Is All There Is to the
Trust Problem
ISays Commissioner Of Corpor.
i ations Davis in Report.
BUREAU Will INVESTIGATE
With . View to Arriving ct the
Truth.
To Sec Whether Monopoly
Really IL Eflcient.

hO8A1y ~ HnUCl0Dt.
Warrington. d. c.. February O.-noen
the monopolistic avntem esontaiu In H.
self tha .e.a. - -. a.-.
ws.. ...~..S- ~,.S~.-~.~
tueee.ol So'p"
=. Dawes. OF the bureau OF corpora
t1ons. declared. In his annual report
made public today, q federal investiea-
tion now under nav hore. - .n.wer
II -.,,,.- -,D.~-
- A-e -
tne bureau Commiss1oner Davies points
out tnat aside from an economic seuoy
OF the trust question. retail price maln-
tenance il one OF the questions to b
taken up. Trusts, their emcdency and
reforms, however, are to comprise the
The need Of some fa6ers, he,dv fcr ~
purpose NJ ,nvestieefion ana rs,hiscifv
in trn.t om.;-. wS.*ra- - ~ -,
reau of =co.nas..sn." = - D sne
81 ~ ~ cn.rne...,n., ~ - 1s NV =. ."i: =.
sn e1. or commission AZ proposed IN
ene penohs aominlstration oaiAs m con-
ssess' Commissloner Oavles empnaax-
eo:
In mis- report he discussed the mon
opoly question at length. saying In
part:
A Question Of Fact.
THE question is whether the trust
form OF organization il really efficient.
If it be found that smaller competitive
units in industry can produce commo-
ditfes more cheaply. or even "a cheaplv
as monopolistic units. and that they
have other and greater advantagea
than those claimed for the ,conono-
listic or trust .veteu, th.r ~. -rohievu
is f,rai,v settied ;r .ovor c' - e .ba o".'n.
nettt;va sv.ter,, ard 49,. n,,,oe e.~,,Nc,,~
- the ..'.. o.u si'e e..le1 - .us.1e
= a.oH y, monoPoiy 10
seroyeo. inns Is scientinc question OF
bureau
10 investigate this question.
while from a governmental point
OF view there, are various aspects OF
the trust question which are OF great
InPortance' sucn as the relation OF
trusts TO popular government ana
tneir erect on the social and econom-
| &c conoltions OF laDor, there are two
aspecn OF IT which are peculiarly
nancy, the erect upon the cost or
pronuction ana oisfrlDution ana th0
eit1ct upon tne price 10 the consumer.
t Is contended by some that with
the increase In the size OF industrial
enterprises there goes q reduction In
| tne cost OF extraction. manufacture,
ana olstroution, and that such reduce
tlon IN COST is accompanied by lower
prlces 10 the consumer and does not
invo,ve is q reauction IN wages or an
-,N, ~. So1l'io.s "1 iaoo''
s'" oa Nao"oPoiy.
even II these claims were-true the
question would stiIl remain, OF course.
wnetner the evii resulting from large
eS CON o.nations woulo not pe greater
enan tne aieeeo advantages OF cheap
el pIo1uSeon ana ulstriDution; 10
.oueu, .o,,. on .ne otne[ hano, tnat the
SS aau o.s!n CI mohopoly -
~, tSu"u sy IN sne oeslIe 70 expioie
tne eeneraI puonc Dy stock-JoDDtng
tSa nees r,ra loe .ne imme1iate nm profit OF
III, t,,n . ~ ~ .ne purpose ..
po.ie Sy.oi VI tne narket anu
| cons,,,,e- ~ Aoe0 Ai"Ai eA0
"Manv large com mb,rat,or. h.y. r..,-
| cd and de,ncnstroted thn;s noHs, .@
inefficiencv Tnmhirot;nn. so So',n ny
| admittei, have nrnsnered h,t "u III !. y
| eIlaveI ~ ho .S,e ~ thasr 80 ,..s liz =
| nosifion ana not 70 snnar;nr sesS
| Cheney Accorair~ - tGoee III, ss.Is
| this view there ,s nc,nt h,,r,.S -
| which tha trcra... oeyOmu
| economy ana efficiencv hut rather ;r
| loss and waste. So that the vnarjr,rrr
efficiency is not attained INV Ia roe corr
| binations but instead NV concerns ~
moderate size. If this latter conten-
| ton be true then. a. has heen said
| the monopolistic system confaics r.,
itself the seeds of its own decay.
To Sell w.tere<, Str,..L
"ar.,, 900 30 -
~ S, s,,,a,,r sone asy,N,a y. lnose VINO olspute
rat,o.sl oo.,t. ~ .,y ol iAIse cotnC-
oi. Scn.eIu ~ .iat tnis clalm Is maze
THey H'y as nhnd Ior the purpose OF
sens wa.eIeu stoch- Iney say tnax
such oIsani1atiohs are estaDnsned Tor
~ % .h" pu,posS o,.e e'.ne5 a .. get.lne control
prices from consumers. or OF issuing
so aino1n.s ~ s,,' ol wa.e,eo stock Ior the
.,hlso putpse u seA'ns sucn seoch 10 tne
..r. A. g.. ..
Ico,ch,rat,o, r, 60 ~ - assue1 sucS .cS