Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
This change in attitude was the result partly of the testimony of
practical business men before the Industrial Commission in 1900, which
was summarized in the following manner by the Commission: "Among the
causes which have led to the formation of industrial combinations, most
of the witnesses were of the opinion that competition, so vigorous that
profits of nearly all competing establishments were destroyed, is to be
given the first place. Even Mr. Havemeyer said this, though, as he
believed that in many cases competition was brought about by the fact
that the too high protective tariff had tempted too many rivals into
the field, he named the customs tariff law as the primal cause. Many of
the witnesses say that their organization was formed to make economies,
to lessen competition, and to get higher profits--another way of saying
that competition is the cause without conceding that the separate plants
were forced to combine."
In a careful and thoughtful analysis of the problem, published in 1900
by Professor J. W. Jenks, then of Cornell University, the wastes of
competition and the economies of combination (within limits) were
pointed out with clarity and precision. The Industrial Commission had
reported that rebates and discriminations by railways had been declared
to be a leading cause of combination by several witnesses appearing
before it; but Professor Jenks at the close of his survey came to the
positive conclusion "that, whenever the nature of the industry is one
which is peculiarly adapted for organization on a large scale, these
peculiarities will so strengthen the tendency toward a virtual monopoly
that, without legal aid and special discriminations or advantages being
granted by either the State or any other influence, a combination will
be made, and if shrewdly managed can and, after more experience in this
line has been gained, probably will practically control permanently the
market, unless special legal efforts better directed than any so far
attempted shall prevent."[50] The logical result of this conclusion is
at least government supervision, and this Mr. Jenks advocated.
Public-domain text, read in full here on John Shaqi.
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