American literature -- Periodicals; Literature -- Periodicals
Only two other illustrations were furnished of benevolent combinations.
Mr. Herbert Knox Smith, commissioner of corporations, instanced a
proposed agreement among lumber men to cut only a certain amount
of timber each year, the ostensible purpose being to prevent the
wanton destruction of the forests. It appeared, however, that the
real purpose of such an agreement was not to preserve the forests,
but to restrict the output, and increase prices, and consequently
the profits of the lumber men. Another illustration offered was the
combination of patent medicine dealers to fix prices and prohibit
price cutting--the object, it was said, being to prevent the unfair
competition of large department stores with retail druggists. But this,
in the last analysis, was generally believed to be a concerted attempt
to destroy competition and enhance the profits of patent medicine
makers. Congressman Littlefield insisted, throughout the entire
proceedings, that the fundamental purpose of forbidden combinations was
to control the product and thereby increase the price to the consumer.
If there were any combinations that did not have that purpose or
result, then the Sherman Act, according to Mr. Littlefield's analysis,
did not prohibit them. Thus in all attempts to define practically
reasonableness and unreasonableness, as applied to trade agreements,
the statement was repeatedly made that the large part of the business
of this country was done in violation of law; that business men lived
constantly in a state of terror from the fear of its enforcement; that
its presence on the statute books largely explained existing business
depression. When it came to defining precisely what they wished to do,
however, none of those who favored the bill became specific. The thing
finally simmered down to a statement by Mr. Low that the law was "a
very important element in the psychological condition of business men
to-day."
_Indulgences to be Granted to Corporations_
Public-domain text, read in full here on John Shaqi.
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