The Washington herald., 1918-12-16


no definition of what constitutes an
act In restraint Of trade, that agree
ments for the regulation OF price come
within its scope Is so generally ac-
cepted as almost TO have the force
Of law. This 10 an instance Of the
persistence OF a popular saying. and
the wide influence IL may exert not
due TO its inherit truth, but because
it has gone unchallenged for genera
tons. Just as the saying. ''the King
can do no wrong" let many a rascal
go unhung. so the declaration com
petition is the life OF trade" has
sentenced many a competitor TO r.
nancial death. II IL the Mosaic law
Of an older dispensation. and should
be regulated to the limbo OF the past.
No competitor was ever driven out
too high prices.
Unrestricted competition in price
has always been. and still is the
fsvorite method OF destroying compe-
tition.
The best way TO preserve competi-
ton 10 to preserve the competitors.
and that can best be done by main
tanning an industry upon profitable
basis.
Control Of production has always
been and still is the most successful
method Of enhancing price.
Judge Barrett, I'm his decision in the
Sugar Trust case said: Excessive
competition may sometimes result in
actual injury to the public; and anti
competitive contracts. TO avert per
sonaI ruin. may be perfectly reason
Sc
are publicly oppressive that they be-
come unreasonable. and are con-
demned as against public policy"
Violent fluctuations in price OF COM
modities are productive Of instability.
just as fluctuations are in the medium
OF exchange. They are. in fact, the
same thing in different forms. As
money depreclates, it takes more OF
il TO buy a given commodity. AS the
price OF the commodity appreciates
in like manner il takes more money
to purchase il. though the medium
of exchange may be OF the most
stable character.
Each ultimately works for the In
Jury Of producer and consumer alike,
and there is nothing more productive
OF violent fluctuations in price than
unrestricted competition.
Take, for instance. a period in which
consumption is decreasing. Each
producer strives to get as great q
share of business as he has had in
order to keep his organization to-
gether, and operate most economic
ally by using his facilities to their
fullest extent To do this. he offers
A lower price. and his competitors
doing likewise. the price continues 10
fall. This does not operate greatly
TO the benefit OF the consumer. foT
buying is never stimulated by a fall
ing market but on the contrary. de-
cresses. and this in turn induces price
reductions until by ruinous failures,
/ or costly cessation OF activity. pro-
duction is decreased TO a point where
il more nearly balances consumption.
This works to the benefit or the
larger and weather. producers. who.
because of their great resources. are
enabled to survive where their weaker
competitors fail, and aCgravstes the
general condition Of declining business
in direct proportion as il encourages
the dealer to reduce hs stock on hand
and the consumer 10 limit or defer
his purchases. each i'm the hope of a
lower price.
When during the succeeding period
OF resumption of business consump-
tion again increases facilities Of pro-
duction are found to be inadequate
and their increase takes place more
slowly The idle factories and empty
treasures are not so easily rejUvena-
ted, and the wealthier and more sue
cessful producers are for a time pos
sessed of more or less OF a monopoly
As a result prices advance rapidly
buying is stimulated. and speculative
| purchasing is encouraged.
| During neither period has the con-
sumner benefited.
II is a conventional belief that the
consumers interest is chiefly. IL no,
wholly. a matter OF price.
1t is in something more than price
| The quality OF product is just as i'm
portant. and quality is a MATTER OF
| development of evolution. The In
dustry that languishes for lack OF
profit develops backward.
Intense competition leads to de-
termination in quality and ultimate
destruction of an industry.
Competition based on price is not
productive OF lasting benefits to the
consumer. On the other hand. where
lQNdllNAs llAlhl NNtAlAtllA anu utNtlopAAAtTl
! OF the product have been the control
ling factors. invariably the lower.
priced article has been forced out OF
the market entirely. or improved un.
der the impetus of high-quality CON-
petition.
/ High priced gas drove out the cheaT
oil lamp, and even withstood the com.
petition OF cheaper light due to tn,
! discovery OF mineral oil Gas in turr
[ gave way in great measure to tn,
higher priced electric current. but
both the oil lamp and gas. under tn,
stress of this form OF high pricet
competition. were developed, CanS
/ particularly gas) with remarkabl,
rapidity. The competition of tn,
electric, light was no sooner felt thar
the reeenerative lamp and the in.
I candescent mantle made their ap
pearance. and these were followed b,
acetyIene gas and many improved pro
cesses in gas manufacture.
! Improvement in product has don,
more for the advancement of man
kind than mere cheapness. The mos
backward countries are those IL
which living is cheapest: the mos
advanced in science and arts are thos,
in which living Is most costly, an,
yp which II Is also most ror,oplax q,