The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-01-10
STATE DIRECTED MONOPOLY.

sition in consolidation and control?
Could a State, a law-malStng, sovereign
member OF the Union. be a violator of
the commercial code of the nation? That
was the question TO be answered at the
outset
Mr.. Weinstock got numerous legal
opinions from high authority and the
view that the project was sound legally I;
an OF them, that II was sound economi-
cally. The industry was enthusiastic
Tor the plan. IT only remained to make
Svee a0Sut the Legal aspect, SO Mr..
suit the Department of Justice and the
Federal Trade Commission.
Neither OF these has officially passed
on MS startling proposal. 1t Is UNDER
stood that the Trade Commission look
ed upon II with more than casual in
terest; in fact, with the keeDest in
terest, and that its inquiries indIcat-
ed general wish to see the plan tried
OUT. Inc commission has been taking
deep interest In many. proposals
looking to larger economies in mer-
chandising
=, Justice Department Hesitating.
But when the California plan was
laid before the Department OF Jus-
tice. that august establishment looked
down It's nose and hesitated to commit
itself. 1t is still looking. still hesItat-
After
weary weeks OF waiting
The impression seems To be that thu
Department OF Justice, In accordance
with It's custom. isn't going to make
any promises or give any assurances.
~ Wlll SIT on the side-lines and wait
20 20 s,, see what sort of performances
CaIfornia can put on Then IL ANYBODY
complains that the thing is PRODUCING
restraint of trade, IL will act as cir
cumstances require
California leaders Of the big innoys-
tion are positive that they car effaet
such economies as will at once incresse
lhe Yield to producers, reduce costs to
consumers, and strengthen the Dusi-
i ness There is; however. the danger
tnat c1TnpEting fruit interests NAV view
this with disaffection, and possibly try,
TO make trouble.
The plan prorc ses to place the name
and good faith Of the State OF CaIifcr-
MIA back of tho whole fruit business.
to have the State gather, sort. stand,
ardize. warehouse and establish brands
FOR everything-frults. vegetables. nuts
and the rest. Everything Will he man
aged at the lowest possible exppnsa.
which Will be prorated among tile pro.
ducers II Is not intended to let the
scheme cost the State treasury any
thing. Rather. while auction markets
ana commission warehouses will be re-
quired, these can he provided by tire
producers cooperative societies NJ .
ready In existence. and managed by
the STATE authortttcs.
To Take Over All.
1t IL intended to take over every
possible instrlOncntNlity ond facility as
now established The essential thing
is to get complete control OF the sit
uation. SO that. with the biggest nos
sible! volume OF business and the eIiru-
ination OF connective isturbances.
the whole thing may be administered
/ WIN the single purnoSe of efficieney
ana economy. One ~ the biggest a 3
poets OF II is the r. =. cent of for
eign trade. for which AZ. Weinstoclx
has found there are rare opportunities .
another Is the working out OF A farni
credit system under which cheater
money may be secured to linance the
agricultural interests of the State In
both these latter TeGards Mr.. Vein
stock has assurances OF support and
advantages far beyond his utmost
hopes
After a week In WASHINGTON. Mr.
WCinstcck has started for California
to go ahead with his plans he LC-
lteves the enterprise will be on ifs feet
soon, and that It will provide the creat-
est obiect lesson this country at east
has ever seen IN the possibilities OF
social end economic letterrlent through
Dig cooperative effort.