The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-07-15
GOVERNMENT COMPETITION WITH
PRIVATE BUSINESS


An interesting fact noted in an exchange
is that in the city of London there are 90
light and power companies doing business.
That would seem to be sufficient competi-
ton to enable Londoners to get their cleo
trio current for almost nothing, but the fact
is that London buyers of current pay
approximately double the rates paid by
American users of electricity. 1t is evident
that private competition does not ALWAYS
result in lower rates for power, probably
for the reason that one big company can
make and sell electric current cheaper than
a number of small companies. One COM
pany in London would name lower rates to
the inhabitants of that great city and give
better service than sixty companies.
The foregoing has never been the Ameri-
can theory of business in the thinking of
the majority of the people. That is evil
denced by our laws for the control of "big
business" to prevent mOnOpolies and to
control price and other combines. How
ever, in this era of the New DeaP' the
fact is being recognized that competition
may be destructive-in fact, is destructive
in a majority of cases-and we have the
great Roosevelt-managed movement in
American industry for the elimination of
unfair competition; which, temporarily, at
least, annuls our antitrust laws.
The position of the administration being
what it is with reference to competition in
private industry it is hard to understand
President Roosevelt's determination to put
the government in competition with pri-
vate business, notably the electric power
and fertilizer businesses.
Too many private enterprises in one line
of industry, or too much competition, will
ruin the industry; will result in higher
prices for products and less efficient pub
he service, or in bankrupting the individu-
ais and corporations engaged in that in
dustry. If that is true of private business
it must be true in a greater degree of gov
eminent competition with private business.
No private business can long compete with
the government, notwithstanding the fact
that government management of business
is always VIGOROUSLY inefficient and ex-
travagant. The government pays no taxes.
That affords the government big advan-
tage over a private business, which finds
taxes large part of the expense of OPP
Grating. On the other hand, if government
operation of business is not successful
and money is lost the deficit is made good
with tax money, which is collected from
all classes of tax payers, including citizens
engaged in industry and those citizens en-
gagged in the particular line of industry
with which the government is competing
Thus the government not only is the
competitor of its citizens, but compels some
Of them to put up money to keep the gov.
eminent in competition in particular line
of business, and compels all other classes
of tax payers to contribute to the efforts
made by the government to put some Of
its own citizens out of business. What
chance has a private business in competi
ton with the government?
If the government enters the power bust
ness it WILL first of all, have the advantage
of tax free business 1t will not have tc
pay taxes and the competing power com
panies will be heavily taxed. Then if the
government loses money in the power bust
ness, it will levy additional taxes on the
power companies to get the cash to cover
the deficit to enable it to remain in the
Ha--.