Competition; Monopolies -- United States; Trusts, Industrial
It should not be understood, however, that this principle has its only
application in cases similar to the two mentioned. There is hardly an
industry, monopolized or competitive, into which it does not enter to
effect important results. It is to be noted, however, that it is least
effective where the demand for the monopolized article is least
sensitive to a variation in price. This fact should be considered by
those who are fond of arguing that this principle alone is always
sufficient to prevent monopolies from doing much harm. While it is
powerful in the case of such monopolies as we have mentioned, where the
demand for the commodity furnished varies greatly with the price, in the
case of the great copper trust or of the quinine trust or of any
monopoly controlling the great staples of human consumption, it seems
plain that it can have little effect. Nor do we need to base our proof
that this principle is not a sufficient remedy upon this ground alone.
Grant it to be true that a certain monopoly makes the greatest net
profit when its rates or prices are at a certain point; then will it not
be apt to set them slightly above that point, where they will give
nearly the same profit with a considerable decrease in the volume of
business transacted and in the corresponding labor and responsibility?
And, again, the point where it makes the greatest net profit is
considerably above the point where it is of the greatest possible
benefit to the community at large. This latter end is attained when it
uses its facilities to their full capacity for the benefit of the
public. The rates should be fixed at such a point that this full
capacity will be utilized, or as much higher as may be necessary to pay
the monopoly a fair profit on its operations.
This influence just considered has its origin in the selfishness of men.
The second, and by far the most important influence tending to
ameliorate the evils due to monopolies and intense competition arises
from that essentially noble trait of human character whose province it
is to seek the welfare of others before that of self. It is not to be
wondered at that the large benevolence of our noblest Christian thinkers
rebels against the inflexible laws of competition, or rather at their
stern application to modern conditions of life. Under our social system,
indeed, each man is striving to do his utmost to benefit his fellow-men,
but only so far as it benefits himself. Christianity goes far beyond
this. It teaches the Fraternity of Man, the Fatherhood of God, and thus
the duty of all men to care for and love their brothers' happiness and
welfare. It is in accord with the noblest and most exalted desires of
the human soul. It teaches a man to seek to benefit others for their own
sake, not for the sake of the reflex benefit on himself.
Public-domain text, read in full here on John Shaqi.
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