Perth Amboy evening news., 1922-06-22
TRUST EXPERIMENTATION
Under SHERMAN LAW
Daily Letter by Frederic j. Haskin.

Roth of these experiments appear
on tho surface to be subject 10 ie-
cal review. especial the latter, ana
II is rather doubtful, in the opinion OF
trust experts of the Department OF
Justice, whether either pan Will
stand.
The present session of congress
onened a new field for the so-caie
benevolent trust by enactlng a plii
which exempts farmers
tive organizations from p~rosecution
under the antitrust laws. ms law
would permit farmers TO marhst
their goods in groups ana whiIe
safeguards are provided intended TO
nrevent monopoly, some observers
declare that with the door opened,
monopoly is likely to rise up ana
control the co~-operatives. This law
will be attacked in the courts TO
test its constitutionality, cases al
ready being in preparation for that
purpose.
Labor unions are declared by the
Clayton antitrust law to be speclnc-
ally exempt from prosecution as
trusts. But the Supreme court, In
recent Coronado case. and inferior
ourts in other cases, have modineu
this exemption so as to make lanor
unions amenable to damages where
their combinations have caused loss
through strikes, in certain circum-
stances.
Combines OF Ancient Origin
The tendency of business in all
forms to combine against the public
Is of ancient origin. No study OF
the development of the great indus
trial corporations, and later of the
trade associations, can be made
without the discovery of the impos-
sibility of altering profound and i'm
mutable laws OF political economy.
people of the same trade" says
Adam Smith. the eminent Scotch
economist. writing generations be-
for the Standard Oil Company was
born, seldom meet together. even
for merriment or diversion, but the
conversation ends in a conspiracy
against the public or in some con-
trivance TO raise prices"
The same economist notes the
%precence of a counter force which
defeats indefinite monopolistic op-
preston. In discussing the effects
of this force upon workmen who
are members of a trade association,
in the form of a guild DR. labor cor
DOIdllOllr III oDStl HSos II lNoA oHa
effectual discipline which is exer-
cised over a workman is not that
of his corporation, but that of his
customers" By this it is meant that
the public always is in a greater
conspiracy even than the trades
man or manufacturer. Always seek
ing the article obtainable at the
lowest price, the public constantly
maintains a fight against the high
priced man or combination.
1t is the observation of economists
that while a trust may control
prices and perhaps production for
a season, sooner or later, the pub
lie will find a cheaper source of sup
ply and break down the monopoly
more certainly than legal processes
can do so.
Students OF the rise and fall of
trusts point out that the motive of
business men or tradesmen to join
against the public is. regarded in
one light, self defensive. Every man
who has something to sell and must
depend for his living upon it at a
price above what it costs; feels that
the buying public is in a conspiracy
directed against him in that the
public always is seeking to find some
one who will sell more cheaply.
The indications at Washington are
that there will be a n~ever-ceasing
development of experiment and Leg
~islation directed at the evil of OPP
pressive monopolies and also a con-
slant constructive movement toward
the provision of highly efficient
means of cooperative industrial
effort.
Lawyers, statesmen and business
men of all branches of industry are
watching with keen interest the out
come OF the two new experiments
! in hncfnaea rao,.Iatt1N