The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-11-08
SHALL COMPETITION GO?

SHALL COMPETITION GO?
The sir is full of talk to the effect
that industrial conditions are to be
different after the war. with the i'm
plication that capital will receive less
and labor a larger share of the fruits
of industry. Much of the talk is mis-
leading, declares the Commercial and
Financial World. for it presumes a
conflict of interests which does not ex-
list. In the first place. it continues.
capital itself vithdraws nothing from
industry; it consumes nothing. Capt.
tai is not living thing; it is not a
competitor of labor. 1t is an aid to
labor in production; it helps multiply
the quantity of all the things which
the millions of men and women who
make up the ranks of labor consume.
For example the thousands of farm
tractors which are now going into use.
each representing an investment of
$1,000 or more. are a form Of capital.
Back of them Is an Investment of mill
lions of dollars, expended in the de-
velopment of the machine and in use
in the plants and working capital of
companies now manufacturing them.
The effect is to increase the amount
of land which one farmer can culti-
vate, and cheaper the prodAction of
food. In the same manner automatic
spinning and weaving machinery in
creases the productiveness of labor in
the textile mills, and capital invest
ments in all lines of industry serve to
increase production. Since the labor
ing class are the great consumers of
products it is evident that this class
is the greatest beneficiary of capital
investments
The idea that labor will be able, sud-
denly and largely to increase the COM
pensation which # receives is evident
ly fallacious SO far as small proprietors
and comparatively undeveloped indus
tries are cohcerned. Many of them
can barely exist under present condi-
tons. The uneconomical producer
must be disposed of in order to make
possible any general advance in wages
SO long as he remains a factor, pro-
tected by law and public favor, the
more efficient producer will be pro-
tected in his profits. He cannot be
| required to sell his product below the
prices of his uneconemica1 competitor
or to pay higher wages than that COM
petitor.
/ 1t is an axiom that the market price
| for any commodity is fixed by tina,
portion of the necessary supply which
is produced at the highest cost
Therefore there can be no rapid
change in industrial conditions except
by eliminating that large body of pro.
ducers in every line who have beer
| doing business at, or only slightly
above, cost Is the.public thinking Of
this class of producers as it talks OF
industrial revolution? Has it made
UP its mind to see them go. and t.
accept the doctrine that the aim thru.
out industry should be not to provide
the greatest number of jobs but to &C.
| complish production in the most eco.
nomical manner?
In other words are the trusts agar
to have an inning? 1t is pointed ou
by the National City bank that there
are economies in consolidating com.
petit1ve concerns. reducing overhead
| charges, making it possible to place
charges, increasing the ability to de
| research work, eliminating transporta
ton charges, making it possible to place
both production and distribution te
greater advantage and improve serv-
ice In many ways.
But the reorganization which this
involved disturbed many people .ano
| excited antagonism. There were in.
stances of hardship, and of arbitrary
and unfair use of power. Popular
| opinion was against the consultations
| Sympathy was with the small opera.
tor, even tho his methods were uneco
nornical; it was thought to be more
| democratic to have a greater number
| of proprietors. Moreover, it was sale
that however great might be the econ
omies achieved by the trusts. the.
were not passed Oh to the public.
The. effect of this popular opposi
ton to big business has been seen IL
the antitrust laws, which, however
have been only partially successful IL
stopping the movement at which the.
were aimed, because when brough
face to face with highly developed or
CARNATIONS evidently realizing impor
tant economies and rendering valu
able public services. the courts hav
sought to find an Interpretation which
|
fishing restraints against the abuse o
| power.