The Washington herald., 1914-02-13
LAW HAS BROUGHT ABOUT
BIG MERGERS, AN EFFECT
OPPOSITE TO ITS INTENTION

The views of Charles X. Van Hise.
president of the University of Wisconsin.
were received with marked attention AID
enthusiasm. Mr.. Van Hiss said that the
Sherman law, while Ii had been useful In
several ways. chiefly had been effective in
bringing about large mergers OF business
concerns, an effect directly opposite TO
that intended by the trainers of the law.
He said II should be supplemented by an
act to forbid only combinations and CON-
tracts in restraint of trade that arc dctri-
mental TO the welfare of the people. For
polItical reasons. he said. the Sherman
law has been enforced against Dig ousi-
ness" while the farmer and laecrer nave
been permitted to violate its PROVISIONS
almost at Will.
Having discussed q great length every
tbasey of the concentration OF industry
and the present proposed legislation rela-
five to IL. Mr. an Hise made the fol-
| lowing conclusions:
| 81 The Sherman act has been useful
| in preventing unfair practices and pun
ishing those who indulged in them: and
it, influence in this matter Is iikeiy 10
become much greater in the future thar
| in the past.
Was Useful as Clnb.
'.2 The act was useful as "A cluo 70
rrayent a general advance OF freight
| rates, before the enactment OF the
clause which gave the Interstate Com
merce Commission authority to suspend
| proposed advances pending investigator
- But the most important effect oil
the act TO the present time has beet
! the acceleration of concentration OF In
dustry by driving organizations from the
trust to the holding corporation, ano
frcm the holding corporation to complete
| merger. an effect the very opposite OF
that intended by those who favored th'
passage of the law.
-. No advantage has been shown nol
is likely to be shown from dissolutiof
of public utility corporations under th'
sherman act, which are already unde
tic control of the commissions, star
and national. These are Illustrated by
the American Telephone and Telesrap'
, company. the Union Pacific-Southern ia
cific merger, &c. On the contrary ther,
1. every likelihood that the puphc VII
, suffer from dissolutions OF organization
. of this class. f,
..5. To the present time it cannot
sbovn that any advantage has accrue'
to the public from the disintegratio
!, of such Industrial organizations as IN
Standard Oil Company. the American TO
bacco Company, &C. While the evtdepc
I is not wholly decisive, its weight
I rather that the public has suffered iror
4 their dissolution through increased price
D &c. The foregoing conclusions. comoine
with other facts, lead TO announcer .s" III
: tion than disintegration as the solutio
of the difficulties which have arisen
connection with concentration OF indu'
try. that solution lies along the foiiowin
\ lines: ~
Trade Commissions Urged
e "a There should be created interstai
u and State trade commissions which sha
have powers in regard to those inoustri
Q organizations SO large as TO De anec,t
with a public interest, similar 10 tno'
which the national and state puoi
e utilities commissions have In regard
!, the public utilities.
i another act, which shall forbid all cor
tinations and contracts in restraint
trade which are detrimental to the we
. fare of the people and make the presum
p tion that all such combinations and co
tracts are thus detrimental but perm
;. 1.-THE trade commissioners TO aiow SUI
% rea sonable contracts and combinations
l. restraint Of trade as are not inimicai
. the welfare of the people.
:, "a. This pfogram to create intersta
= and State trade commissions and perm
y reasonable cooperation will result In I
following benefits:
IA The efficiency which goes with
dustrial magnitude will he securaoie a
the resultant profits may be fairly d
tributed between the producer and l
F. consumer: the farmers cooperative moN
ments will become lawful; labor orsani7
:, tions will be free to act in all legitimf
:. ways; exploitation OF the natural
- sources may be carried on in harmo
. with the principles of conservation