The sun., 1916-12-03

~ tht gu lulp. fhp
limitation Of price, forced by free com
petition. is below the cost of produc.
ton, and as the result the level rcacboa
by free Industrial competition ia an
unstable condition. a condition of pro.
duction at n loss. which can exist and
continue for a limited time only. bu,
finally ends in the bankruptcy of manv
Of the producers. In serious losses IN
others, and in widespread destruc,io,
Of values.
The natural result OF this industrial
law is hat free competition canno,
continue, but that intelligent peoplei in
charge Of the industries all over the
world-whether they he the milkmen or
ice dealers supplying n small country
town. or the presidents Of rolling mill.
or railroads-havc to come together
and stop unlimited competition before
the level Of destruction Is reached.
This led to cooperation as the indus.
trial force which is taking the place o,
competition.
Many people In u country, in nil
walks Of life, economists and states.
men, even, do not yet realize the work.
ing OF this economic law and It's con.
sequence.
They see competition vanishing be.
fore cooperation or consolidation, and
still dreaming of competition as the
beneficent force which it was in the
early days of industrial development.
endeavor to restore competition
Therefore, you see all tho attempts 10
resurrect to life a dead ISSUE 10y lcrai
enactments, by trying To break NJ the
corporations, enforcing competition h.
law, &c.
All his IL contrary to tho economic
laws q DERIVING industrial production.
and is therefore helpless. and must rc-
main a failure. No legal enactment
can change this. but the laws OF nature
are above man made laws, and political
law violating the laws Of nature is
void. You may destroy tho industries
by legal interference, and plunge the
nation In disaster and chaos. but YOU
cannot restore competition. 1t is dead.
just as dead aa the f%cudalism of the
Middle Ages. Cooperation is taking is
place.
Thus. not the TRUSTS arc killing
competition. but the failure of comne.
tItion is the cause of industrial con.
solidation Of the corporations.
Thus. wherever outside forces did
not interfere. the inevitable, because
natural. industrial development in the
individualistic era is, from small pro.
duction 10y numerous independent in.
dividual produCers-in the days before
Lincoln in our country-to a smaller
number of larger industrial establish.
ments still personally owned and man.
aged. Then by consolidation OF the
stronger and elimination Of III"
weaker ones came the formation OF
industrial corporations, each repre-
senting the combination of numerous
individual producers.
In the beginning these corporations
were still largely dominated by indi-
viduals, their Organizers. hut gradually
the personal element stepped into the
BACKGROUND and vanished, the number
Of corporations decreased and Their
size increased until finally the entire
industry was organized into Il mod
crate number of very large corpora
lions, often still In fierce and destruc-
tive competition with one another. o.
necessity then followed the formation
of n cooperative arrangement between
corporations dominating the industry.
for sclf-prescrvation against No gen.
eral destruction inevitable by unrs-
strained competition.
/, Sometimes it was the formation ~
y single corporation controlling INC
entire industry: more frequently one
large corporation controlling "a large
part of the industry aud q number
Of smaller corporations, which, WIZ"
financially and administrativclv ln''-
ncndcnt. lv taCit understanding r.-
copied tho prices fixed Ia tho d''n," -
ing corporation, Usually, however.
with a number Of large corporations
in tho field. tho destructive com0"'-
ton was eliminated by Agreements
limiting production to that conform
Ing with tho demand, and agreeing
upon prices maintaining n fair mfr-'n
Of profit. such cooperative a-rco-
ucnts varied in nature from nr1'l'r'|
consolidation into Il trust or srri.'i''
to n mere ccntlomor's a%Grooror'.
Such n cooperative agreement ~
prices and production r. ne"cs--'r y
the industry shall survive and w." "a
ton escape industrial disaster. and IN
countries In which an intelligent 'on-
trali2cd government looked "''r' '''
welfare Of tho nation. as in .r0.i'F
such elimination NJ compete ga
consolidation for tho common "' '''
boon encouraged and uesls'"' 10
often enforced by the Gov"r."'''
while in countries I'm which 49,. '''
crnmont IS entirely uNdor t'' c'.'''.
OF capitalism AND has uo 'u.'.''.
DowCr as i'm ErsitNl tNC COVE 'f -