Valdez daily prospector., 1914-06-04

%f$$@t '"z-*4*FtF*FFF'T "HE annual report of Secretary Redfield of the department or N commerce throws the first defi-
 nite light on the present views of the administration in regard to the regulation of industrial corporations.
 It contains suggestions which, 1t is believed indicate clearly the charac- ter of the program the Wilson admin istration will recommend in its efforts to have antitrust legislation enacted at this session.
 Joseph A. Davies, commissioner of corporations, is one of the men with whom the president has conferred in regard to the antitrust program about to be introduced in congress.
 MT. Davies also has conferred with the leaders of congress. His recom- rnendations incorporated in the report of the secretary of commerce are there fore regarded with significance.
 The Indicated Program.
 This is what the. report says on that subject:
 "That there are immediate and well known conditions that should and can be remedted by law is apparent. Some of these remedies are, for instance, law providing that there shall be presumption that all restraints of trade are unreasonable and placing the burden of establishing the reason ableness of such restrain upon the par ty alleging it; legislation looking to fundamental charter provisions for ev- cry corporation doing interstate busi- ness; that stocks and bonds shall not be issued except for money or prop erty at its true money value, prevent ing the watering of stocks; that cor porations shall not hold stock in other competing companies. and that neither a person nor a corporation shall at the same time own controlling interest in two or more competing corporations. and that the officers of corporations shall not be affiliated directly or indi- rectly by holding office in other cor porations."
 That the above reflects the admins trations program seems to be further indicated by ehe following from Sec retary Redfield's report:
 Congress will undoubtedly address itself to some of these aspects of the situation with curative provisions" Governments Ultimate Attitude. The report goes on:
 "Regardless of such legislation, how ever, there still remains fundamental economic fact to be determined-to wit: Whether the trust or monopol1st- i ic form is socially and economically efficient in production, as is alleged. and upon the solution of this problem must depend the ultimate attitude or the government toward combinations and consultations in business.
 Ut is contended by some that with the increase in the size of industrial ] enterprises there goes reduction i'll 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 reduction in wages or an i'm Ol luC SOIulCloAAo oh 'oooA' "Even if these conditions were true the question would still remain, of course. whether the evil resulting from large combinations would not be great CT than the alleged advantages of cheaper production.
 Tt 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 or the promoters or in the purpose to at tain control of the market and exact l unduly high prices from the consumer. Many large combinations have dem | onstrated their economic efficiency. Combinations which have attained 1 control of the market, it is admitted. have prospered. but this may be due 1 to monopoiistic position rather than to superior efficiency.
 According to this view there is Q point beyond which increase in size l does not result in increase in efncien- cy. but rather in, loss. and waste. 90 that the maximum eficiency ia not at- tained by large combinations. but by concerns of moderate size.
 If this latter contention be true. then, as has been said. the monopofis- tic system contains in Itself the seeds l of its own decay. and the preper. .atd- tude of, government must be resnln- ton of competitive conditions and not
 reRulatton uf monopolistic factora . The sspoEt urga- n, .invsstleasaon ~ 4hA 'Nupoau Sf ,cuepount1Un1 e