Competition; Monopolies -- United States; Trusts, Industrial
If pure selfishness were the only motive influencing the masses of
mankind, the evils which we have considered in the preceding chapter
would be wholly unbearable. All men would be waging an industrial
warfare with each other in their greed for gain, just as the barons of
feudal times fought to satisfy their thirst for power and possessions;
and as motive is the great force which determines character, we would
be, as far as moral excellence is concerned, in the same category as the
uncivilized savages.
Fortunately for the happiness of the race, there are important
influences at work counteracting, modifying and ameliorating the social
evils that threaten us. These influences are not cures for these evils,
though they are so considered by very many people. But they are very
important palliatives. They are certainly of inestimable value in the
lack of real remedies; but it is better to consider them as palliatives
merely; for necessary, as they are and always will be, to soften and
relieve the ruggedness of human laws and human administration of law, in
the present condition of humanity they cannot effect a cure of the evils
which burden us.
The first of these palliatives has a purely selfish origin. It arises
from the desire of the managers of every monopoly to make the greatest
possible profit from its operations. Let us take, for example, a street
railway monopoly which is at liberty to charge such rates of fare as it
chooses and which has no competitors. If it fixes its fare at 10 cents,
very many people will prefer to walk or take some other mode of
conveyance, who, if the fare was at 5 cents, would patronize the road.
Thus it may very likely happen that 5-cent fares will yield it the
greatest net income. It is often said that it is competition which has
brought our rates of railroad transportation down to their present low
point. While this is largely true, it is also true that the tendency to
foster the growth of traffic by making a low tariff has been a large
factor in bringing rates down to a reasonable point. Another example of
this principle's operation is in the case of monopolies protected by the
patent laws. In this case the collection of only a moderate royalty will
generally result in greater profits to the inventor than he would secure
by exacting a large fee, because of the greatly increased sales in the
former case.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account