Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-25


been safely entrusted with the vast
responsibilities, and business men
who have built up industries giving
employment to thousands and who
have added no small share to the
country's wealth and prosperity,
have been called before committees
of Congress to be treated as male
factors. The whole power of the
government has been expended to en-
scrce Policies contrary to economic
law. The government has protested
to be striving to bring about peace
amongst the nations of the earth,
whilst demanding that the war of
destructive, unlimited, wasteful COM
petition shall prevail amongst it's own
business interests, The designation
which General Sherman applied to
war Is no less true when the war
is an economic one. When efforts
are duplicated, resources are wasted
and only the strongest are able to
survive.
THE trust question is unquestion-
ably the most important subject be-
fore our people today. 1t never Will
be settled; it never can be settled UNI
til 1t is settled right. 1t is not a new
question. From the days OF the HAN
seattle League down to the present,
conferences Of the worlds steamship
same lines of business, after having
been engaged in destructive compe-
tition to the point of exhaustion, both
of their competitors and themselves,
have been compelled to call halt and
by cooperation restore the resources
wasted in competitive warfare.
Whether the business be great or
small the forces leading to co-opera-
ton are stronger than the forces lead
ing to competition, and cooperation
under proper safeguards is best for
the public welfare. Have our states
men studied the experiences Of other
nations?
In England. the early part of the
last century was marked by UMPIRE
cedented industrial growth. The cor
porative form Of business Organiza-
ton was invented and had such a
widespread adoption as to alarm
many Competition was keen. The
common law forbade cooperation of
every kind as conspiracy In restraint
of trade. The same laws forbade alike
the organization of workmen and OF
capital, but they we're equally futile
as to both classes of offenders. In
1s45 Sir Robert Peel declared that or
CARNATIONS of workmen and of en-
ployerS should alike be regarded as
lawful, so long as their acts were not
contrary to public welfare. This pol
icy inaugurated by Peel has never
been changed. England has treated
the question OF cooperation as a
purely economic one; that is to say.
il correct in principle, nothing could
be done to obstruct it; if wrong in
principle, it would fall by the opera
ton of economic law. Under this
national policy England has grown In
wealth and power and its business
men have been left free to conduct
their business in such a way as to
create the greatest individual and
national welfare.
Co-OperatiOD Principle.
In Germany the twenty years
which followed the Franco Prussian |
War; had in the main been years of
adversely. German statesmen and
economists were compelled to study |
with the utmost care what policy |
would most conduce to national pros |
perity. They adopted the principle of
co-oparation, which was extended to |
the largest, as well as to the small |
est. interests. Every effort was made
to maintain comparative uniformity |
of prices throughout good and bad |
times. Realizing the constant need OF |
new capital to keep pace with the de-
velopments of industry, the prices au-
thorized were higher than the actual
average prices which would have pre- |
vailed subject TO competition. Ihls
policy has built up the prosperity of
German manufacturers at home ana
abroad, and has caused a rapidity OF
growth and a degree of prosperity
unprecedented in the history OF the
world. 1t has enabled their trade to
invade the markets of the world
What then should be the policy of |
the United States? The President Is |
wise in urging upon Congress the |
creation of a national industrial COM
mission. but I believe that he has as |
yet failed to grasp the opportunities
which await such commission. III
should not devote itself to smelling |
out ancient violations of law, it should |
not have initiative to prosecute infrac-
ton of the Sherman act, but 1t should |
be authorized to permit groups of |
business men, competitors desiring to |
bring about such cooperation as is |
not contrary to public policy, to file
with II articles of association. 1t |
should strictly examine into the pur-
poses and forms of such associations |
and. when desirable, grant hearings
both to those favorable to and those |
opposed to them. The financial re- |
suits of their operations should be
sociations should be permitted to ex-
list only so long as their operation Is |
not inconsistent with public welfare. !
LET anyone whose interests are in |
jured by Their operation, whether as |
consumer competitor or as represent |
alive of the public at large, call for |
a review of their operation by the |
commission sitting as a court. Let
not the commission be made parti- |
san body with powers of petty prose-
cution, but let those whose interests
should be conserved, as well as those |
who feel themselves to be aggrieved, |
have an impartial tribunal created for
the adjudication of their conflicting |
interests. Let the Sherman act stand |
unaltered. Let 1t be assumed that CO. |
operating interests shall always be |
upon the defensive, that they are pre-
Sumed in advance to be contrary to |
public policy; then will business men |
know where they stand There will |
be n tribunal of ample powers to deal
with violations of the Sherman act. |
and with power also to protect against |
extreme interpretations of the Sher- |
man act when it is clear that the pub |
lie interests are not infringed. The |
protection of the commission can be |
invoked to prevent the destruction of |
great interests by ru.nous competi- |
ton, where such destruction would be, |
as In nearly every case ii must be, |
contrary to the public interest"
The Importance Of united action on
part of the business men through the
means OF the National Chamber of
Commerce, now in the third year OF
its existence, was dwelt upon by |
Mr.. Fahey who, by the way of intro
duction. showed the ineffectiveness of
the old-t!me way of single bodies ap-
pealing to the legislators in Wash
ington. He then continued: