Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-07-02
ELIMINATING COMPETITION

&e W. oso . many years on n I0eOSy
that the way to secure good service at a proper price was
to encourage competition. But in a number Of classes
OF enterprise it has been found that the plan does not
work. This has been particularly true of the railroad
business. Railroad people long ago found that they could
make more money by combining than by competing. and
we have enacted volumes of legislation to compel the rail-
road men to compete when they did not wish to do so.
Gradually 1T was discovered that unrestricted competi-
ton was bad for the public as well as for the railroads,
and during recent years the trend has been in the direc-
ton of the elimination of the competitive element, the
encouragement Of combination, and closer regulation by
the government of the affairs of the railroads.
War expedients cannot always be taken as a sure
indication of what will be useful in time Of peace, but it
is worth while to note. nevertheless; that when war con-
ditions forced the nation to seek the most effective SER
the attempt was made at first to bring the railroads into
what amounted to one giant combination, to be operat-
ed as one, and when that failed. the entire business was
taken over by the government, and the desired combina-
ton was effected under government auspices.
Some little time ago, when the circus managers of
the country wished to arrange for their summer routings
and for the necessary transportation, they were inform
ed by one Of the officials assigned to the railroad depart
ment Of the government that circus trains would be car
ried over the various roads. but that the circus men must
first get together and agree on a division of the terri
soASb oo SAoS SpS SuCA y vi lac dAI4Od "OulU o US
wasted in hauling two or three circuses over the same
route.
That is a sample of what the government is doing
all along the line to nrAvent the waste which there is in
unrestricted competition, Wherever a territory can be
served properly by one institution in a single line Of bus.
mess the effort was made to have one institution assign.
ed to that territory instead of having the field divided
among many. y
1t will be seen at once that this policy, while un.
doubtedly the best for the abnormal conditions under
which we are working, will not be satisfactory as a gen.
eral policy unless it is supplemented with something else
Three elements may be mentioned among those which
tend to keep prices at their proper level and to insure
proper service to the public. These are the willingness
and ability of the public to buy, the influence of compe,
tition, and regulation by the state.
A man may have a monopoly of a product, and still
his pleasure. There is a limit beyond which the puuhe
will not endure exploitation, and il that limit is passed
public patronage ceases. The traffic will bear a certain
price and no more, and this entirely apart from all othe.
considerations. r -
A certain measure Of competition tends to lowe,
cost and stimulate service. But competition pressed be.
yond that certain limit involves a waste which must be
reflected in higher cost or bankrupt institutions.
Division Of territory and the consequent elimination
of all competition must in all cases be supplemented by
government regulation, and it is. doubtful ii. under tina
system, in most lines Of business, that system will no,
smother enterprise and destroy initiative.
In most of our operations we have not yet found thu
perfect substitute for sane and moderate competition.