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 238 THE AMERICAN JOURNAL OF SOCIOLOGY

to an invention, but even the formal combination which is for- bidden as a conspiracy may frequently be of great social advan- tage. The absorption of weaker competitors, provided they are not over-capitalized, may save some manufacturers and merchants who have previously taken a worthy part, from the hardships of crushing competition, and thus prevent a great deal of social friction. Not only so: a coalition among competitors, even before they have been driven to the trust-forming stage, may be of such advantage in solving serious social problems that, far from prohibiting it, it may seem desirable to promote it. I refer here to a combination which would secure some of the results attained by the trade alliances which have been formed under the inspiration of Mr. E. J. Smith, of Birmingham, England.' This movement has for its object the organization of a whole trade on lines somewhat similar to the old guilds. The necessary cost of production is found by a careful examination of experts. This cost estimate includes uniform working expenses, trans- portation rates, commissions, discounts, minimum profit, etc. A minimum selling price is then set, and any underselling or departure from regulations concerning grades of commodities is punished by a heavy fine. Readjustments are made every six months. Provided due care is taken to shut out shaky concerns whose cost of production would raise the necessary minimum, a double advantage can be derived by society from such trade combinations. First, the trade itself is protected from the sud- den revolutions caused by cut-throat competition. While weaker producers will doubtless be eliminated in time, the transition is gradual, and much of the suffering for which our sympathies are now stirred is avoided. A minimum wage is stipulated, hours of labor are likewise guaranteed to the workmen, and wages are to rise on a sliding scale as prices rise above the minimum. In the second place, the consumers gain by immunity from the scamp- ing and adulteration of the unrestricted competition. Con- fidence in the merits of Mr. Smith's plan was expressed by Joseph Chamberlain in the following words: "I do not know whether

■ For a rather full account of this movement, see special Consular Reports for June 6, 1899, prepared by Mr. \V. T. Griffin, the U. S. commercial agent at Limoges.