Competition; Monopolies -- United States; Trusts, Industrial
Let us now see what we would effect by the enforcement of this principle
of non-discrimination. We have explained in the chapter on combinations
in trade how one monopoly gains strength by alliance with another; as
when the firms belonging to the car-spring combination made a contract
with the steel combination by which that monopoly agreed to sell to
them at a reduced price and to make an extra rate to their competitors.
Under this law it would be impossible to found one monopoly upon the
favors of another in this manner.
The obnoxious trade boycott, too, which is now becoming so common, would
be effectually checked. And the scheme for crushing out a rival by
giving all his customers specially favorable rates would no longer be
practicable. The fact is that if we can stop the discriminations which
the monopolies have practised, we shall cure a large share of the evils
they have caused. It may be said that the courts will already punish
many conspiracies of this sort; but a monopoly which is already breaking
the law by its contracts of combination, finds in its methods of doing
business plenty of chances to evade the laws against conspiracy.
Certainly with a properly drawn law with reference to the publicity and
stability of prices, it should be possible to practically wipe out the
evil of discrimination by monopolies. It is also to be noted that the
requirement of non-discrimination and of public and stable prices would
bring profit in doing away with the waste of competition.
We have now to inquire what means it is possible to take to ensure that
the prices charged by the monopoly shall not only be the same to all,
but that they shall not in themselves be so exorbitant that the monopoly
will reap large profits at the public expense. How can we keep the
prices charged by the monopoly from rising far above the point where
they would stand if free competition were in force? Two methods are open
to us. We may keep down the monopoly's rates by what we will call
_potential_ competition, or we may reduce them directly by legislative
enactment.
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