The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-07-15
A LAW GONE WRONG

tions generally regarded as inimica1
to the public welfare. and SO effective
in preventing trade combinations
which might prove advantageous to
the p1bic, that it has aroused a wide
spread and growing sentiment for its
repeal or modification. 1t has been
ignored. set aside and made the sub
ject of SO many exceptions as to rem
der it practically worthless.
| Inability of large commercial in
terests to unite the agencies of pro-
duction, transportation and distribu-
ton without violating the antitrust
laws or the federal trade act is large
" responsible for the present high
cost of living and the high cost of
everything else to the consumer in
the opinion of the Mining Congress
Journal
The advantages of cooperative COM
binations both to the small producer
and the consuming public are well
illustrated by the success which has
been achieved by such organizations
as the various California fruit ex-
changes. These Organizations. ex-
empted from the provisions of the
velop scientific and efficient methods
for the effective distribution of the
output of a great body of scattered
producers, and their work has tended
to lower costs. The success of these
efforts, in fact. was the primary rea-
son for the recent passage of the CO.
operative marketing bill making pos
sible the same combinations for agri-
cultural producers.
Under these circumstances is it not
reasonable to believe that a rnodificaS
ton of the Sherman law as applied to
Industry would, under proper super
vision, result in greater efficiency and
lower costs in the production of many
products? As the law stands, the
only method by which necessary econ
omies can be obtained is thru the ac-
tual merging of individual Industrial
concerns into great combinations of
concentrated wealth. A proper modi-
fication of the Sherman law would
make it possible to obtain the benefit
Of cooperative combinations without
the necessity of an outright sale of
industrial properties. The provisions
OF the Sherman law, as they now
stand. not only tend to prevent the |
application of modern and efficient
methods to industry, but they actually |
defeat the aims of the law itself
The elimination OF waste and the |
Introduction of economy thru combi- |
nations of enterprises dependent upon |
one another should insure conserva-
ton and promote the public interest. |
Therefore, the time seems opportune |
for the government to take a forward |
step in cooperative business admins
tration by providing an amendment to /
existing laws which viii permit any
consolidation of business enterprises
in production, transportation and dis
tribution when the public interest will |
be served thereby. The essence of such |
a plan would be the public interest. |
There is every reason why the gov
eminent should function helpfully in
matters of business and provide means
to establish confidence between the
government and business interests.
The government would. under such a
plan, intervene in the affairs of bust
ness only in a constructive way.
Probably the most important fac
tors which enter into the cost of any
commodity are those of transporta-
ton and distribution. The reason
these elements of cost are so great
is that these agencies are usually
completely divorced If an industry
proposal for the consolidation of all
facilities for production. transporta-
ton and distribution needed for the
promotion of that industry and could
show that such consolidation would
facilitate production, prevent waste,
reduce costs. eliminate duplication,
and expedite delivery to the ultimate
consumer, all of which would be in
the public interest. government
agencies should have the authority,
after appropriate investigation, to al
low such consolidation to be made.
In former years. production was ac-
complished In small volume at high
unit cost while distribution was reIa-
lively local and distribution costs rela-
lively low. Today, we have a reversal
Of the situation of a quarter of a CEN
fury ago with mass production at
small cost and national distribution
at high cost to the consumer. It
SEEMS nAsAtS PrODapAe Itidl Il COtAsESSS
should amend existing laws so that
could be made, when
ever in the public interest. without
violating the antitrust laws. great
economies could be effected both in
production and in distribution. I'm
provement in productive and distribu-
tive processes with consequent re-
duction in costs to the consumer can
not take place as the result Of legis-
lation except in so far as legislation
may help to set in motion economic
forces to this end.