Competition; Monopolies -- United States; Trusts, Industrial
The first important means to secure this which the author would
suggest is simply an extension of the common-law principle of
non-discrimination. A man in conducting certain sorts of business is
permitted to do as he chooses. He may sell to one person and refuse to
sell to another; he may give to one and withhold from another. But if he
enters business as the keeper of an inn or as a common carrier of
passengers or freight, he can no longer exercise partiality. He has
_elected to become a necessary servant of the public_, and as such he is
bound to serve impartially all who apply. In the same way a manufacturer
while he engages in business under the usual laws of competition, may
sell to whom he pleases and exercise such preference as he chooses. But
when he combines with all other manufacturers of the same sort in a
combination to restrict competition, he and his allies voluntarily
change their relation to the public. Is it not true that they do
actually _elect to become necessary servants of the public_--far more
necessary, indeed, than the inn-keeper or the stage-coach driver,--and
ought they not therefore to be placed under similar legal restrictions?
In every case where combination or consolidation restricts competition
in an industry, one effect produced is an increase in the power over
the public which the industry possesses. But this increased power over
the public, thus voluntarily assumed, must inevitably carry with it
increased responsibility to the public. It is the duty of the government
to see that this responsibility is legally enforced.
This first principle, then, should be embodied in a law providing, in
substance, that every person or firm entering into a contract to
restrict competition should, so long as that contract was in force, be
debarred from showing any preference in his or its purchases and sales,
by giving more or less favorable prices to any person or firm than those
quoted to any other person or firm. To enforce this requirement and
prevent its evasion it is necessary to provide also that prices shall be
public and that they shall not be altered without due notice. The
requirement of publicity might be best effected by providing that the
contract restricting competition should contain a schedule of prices,
which would usually be the case in any event.
While this may seem like quite an assumption of authority on the part of
the State, it is exactly what trusts and trade associations are striving
to effect, though with the important qualification that when occasion,
in the shape of an obnoxious competitor, requires, they wish to be at
liberty to put prices up or down at short notice and exercise their
preferences as they choose.
Public-domain text, read in full here on John Shaqi.
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