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The Green Bag

I think we all recognize that the over-produc tion which comes from unchecked competi tion and which results in erratic price move ments and great waste are evils which the

the Government is interested in the con serva tion of its natural resources, this law was passed. It ﬁxed the proportion of the de mand which each corporation is permitted to trusts have done much to eradicate, and that produce and established the maximum price in so far as they regulate production accord at which it may sell. A court is established ing to demand they are of assistance to modern which is to reapportion every two years the production of each company, based on the commerce. “Their greatest danger lies in their power demand the preceding years. Any corpora (1) to enhance prices and thus reap abnormal tion producing in excess of its allotment must proﬁts, (2) to stifle new competition by pay a prohibitive governmental charge. piratical methods, and (3) to prevent the "There is no legal diﬁiculty under our con development of new inventions. I suggest stitutional restrictions that cannot be over the following remedy for the existing situa come. It is imperative that we take some practical step without further delay. Neither tion: "First— Enact a federal incorporation law political party can accomplish anything on such as has already been discussed, under the lines as at present drawn. The opposition which any corporation engaged in interstate can denounce the party in power and make business may incorporate. impossible claims and promises, but if given “Second-—This law to provide for a com the power it can do no better. Suppose it mission to ﬁx the maximum prices at which succeeds in sending the heads of a few of the commodities may be sold, based upon an trusts to jail (a violent if not impossible sup investigation of cost of production, with position, in the light of the experience of the powers in the commission over interstate past twenty years), will that rid us of the industrial corporations similar to those of the trusts? present Interstate Commerce Commission over "It is impossible to again resolve these combinations into their original parts. The railroads. "Third—Then, having created a refuge for next best thing is to treat them as quasi those corporations which are willing to sub public corporations; get for the public what ject themselves to these restrictions, let us is best in them and curtail their power to enforce the civil and criminal provisions of oppress and levy tribute upon the people. the Sherman law until every trust has been It can be done if we will but substitute sane forced to subject itself to control, and allow business reason for wild demagogic denun no other corporations engaged in interstate ciation. Thus far we have been playing into business to operate under state charters if the hands of these astute gentlemen. There they come within the regulations of Congress has been great blowing of trumpets over the and can be thus controlled, as most of them accomplishments of the administration in the courts, but the trusts g0 merrily on; can be. "Fourth-The commission should have not one has really been affected or ever power summarily to investigate all com will be by such methods as are now being plaints of oppression and unfair competition employed." The New York Times is disposed to regret and to direct criminal prosecution and suits "that so cool an observer should go so far to to forfeit the charters and disband all cor identify himself with a popular hysteria which poration so offending. "Germany has already ‘blazed the way’ for he disapproves." It asks:

us in dealing with this vexed and complicated problem of legislative enactments which we would do well to study. In May of this year the Reichstag passed a law regulating the potash industry. Germany controls the world's output of potash. It has the only known deposits. There were ﬁfty-four com panies owning and operating these deposits. They were producing largely in excess of the demand and as a result they were depleting the deposits without proﬁt. In order to cor rect this condition, and on the ground that

Is there any such essential difference between the operations of our trusts and Germany's methods of regulating industry as to wan-ant our displacing procedure before grand and petit juries by the inquisitions of federal commissions? When the worst truth is said about our trusts. have not the selected victims either justiﬁed themselves before juries or been guilty of acts respecting which courts are divided in opinion? And is it not beyond dis pute that most men regard the law against trusts as one to be obeyed by other men and broken by themselves? In particular is it not true that a process of discipline is proceeding of which too little notice is taken?