Distributive Justice: The Right and Wrong of Our Present Distribution of WealthRyan, John A. (John Augustine)
PhilosophyChristian
Distributive Justice: The Right and Wrong of Our Present Distribution of Wealth
Ryan, John A. (John Augustine)
Economic history; Income distribution -- Moral and ethical aspects; Wealth -- Religious aspects
Refining Company, and the combinations in meat packing and in
lumber.[175]
A safe statement would probably be that the greater part of the
surplus gains of the most conspicuous American monopolies have been
due to excessive prices rather than to economies of production.
Let us turn from the subject of unjust monopoly gains to that of
unfair methods used by the great combinations toward their
competitors. These methods are mainly three: discriminative
underselling, exclusive-selling contracts, and advantages in
transportation.
_Discriminative Underselling_
The first of these practices is exemplified when a monopoly sells its
goods at unprofitably low rates in competitive territory, while
maintaining higher prices elsewhere; and when it offers at very low
prices those kinds of goods which are handled by competitors, while
holding at excessively high prices the kinds of commodities over which
it has exclusive control. Both forms of the practice seem to have been
extensively used by most of the monopolistic concerns of America.[176]
The Standard Oil Company has been perhaps the most conspicuous
offender in this field.[177] This practice is unjust because it
violates the fundamental moral principle that a man has a right to
pursue a lawful good without hindrance through illicit means. Among
the illicit means enumerated by the moral theologians are force,
fraud, deception, lying, slander, intimidation, and extortion.[178]
The illicit means employed in discriminative underselling are chiefly
extortion and deception. If the very low prices at which the monopoly
sells in the field which contains competitors were maintained outside
of that field also, and if they were continued not merely until the
independent concerns were driven out of business, but indefinitely
afterward, no injustice would be done the latter. For no man has a
natural right to any particular business. If a powerful concern can
eliminate competitors through low prices made possible by superior
efficiency, the competitors are not unjustly treated. They have no
more just cause of complaint than the inefficient grocer whose custom
is attracted from him by other and more efficient merchants. The
offence is at the worst contrary to charity. But when the monopoly
maintains the low and competition-eliminating prices only locally and
temporarily, when it is enabled to establish and continue these prices
only because it sells its goods at extortionate rates elsewhere, the
latter prices are evidently the instrument or means by which the
competitors are injured and eliminated. In that case the monopoly
violates the right of the competitors to pursue a lawful good immune
from unfair interference. The lawful good is a livelihood from this
kind of business; and the illicit interference is the unjust prices
maintained outside the competitive field.
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