CHAPTER 29
PUBLIC POLICY IN RESPECT TO MONOPOLY
References.
Anderson, B. M., Jr., Competition versus monopoly the issue of the campaign. Independent, 73: 997-1002. 1912.
Bolen, G. L., Plain facts as to the trusts and the tariff. 1902.
Brown, W. J., The prevention and control of monopolies. 1915.
Clark, J. B., The problem of monopoly. 1904.
Clark, J. B., and J. M., The control of trusts. Ed., 1914.
Clark, J. M., Rates for public utilities. A. E. Rev., 1: 473-487. 1911.
Collier, W. M., The trusts. 1900.
Davies, J. E., Trust laws and unfair competition. 1916.
Durand, E. D., The trust problem. 1915. See also Q. J. E., 28: 381-416, 664-700. 1913-1914.
Durand, E. D., The trust legislation of 1914. Q. J. E., 29: 72-97. 1914-1915.
Ely, R. T., Monopolies and trusts. 1900.
Gray, J. H., The control of public service corporations. A. E. Rev., 4 (no. 1, supp.): 18-44. 1914. Round table discussion of above, 45-68.
Hotchkiss, W. E., Recent trust decisions and business. A. E. Rev., 4 (no. 1, supp.): 158-172. 1914. Round table discussion of above, 173-195.
Jenks, J. W., The trust problem. 1900.
Knauth, O. W., Capital and monopoly. P. S. Q., 31: 244-259. 1916.
Knauth, O. W., Competition and capital. Ibid., 30: 578-590. 1915.
Knauth, O. W., The policy of the United States toward industrial monopoly. 1914.
LeRossignol, J. E., Monopolies past and present. 1900.
Orth, S. P. (Ed.), Readings on the relation of government to property and industry. 1915.
Ripley, W. Z., (Ed.), Trusts, pools and corporations. Ed., 1916.
*Source Book, 383-385. The Sherman anti-trust act.
Stevens, W. S., The Clayton act. A. E. Rev., 5: 38-54. 1915.
The trade commission act. Ibid., 4: 840-855. 1914.
United States Industrial Commission, Report. 1898-1901. 19 vols.
Wright C. W., The economics of governmental price regulation. A. E. Rev., 3 (no. 1, supp.): 126-131. 1913. Round table discussion of this paper and that of J. M. Clark, 132-142.
Wyman, Bruce, Control of the market. 1911.
Questions.
1. What is the trust problem?
2. Does the public consider the growth of trusts to be good or bad? What do students of the question think of it?
3. Which one of the following views do you think to be nearest the truth and why? (a) The trust is a natural and inevitable outcome of modern conditions and is a distinct economic gain. (b) The trust is a result of special privileges and corporate abuses. (c) The trust is the greatest invention of this or any other age.
4. Would it be a good thing for society if a trust made great economies in production, crowded out its smaller competitors, and maintained prices just where they were before, dividing among its shareholders the amounts saved?
5. How would the effects on society be different if prices were reduced by better organization and the prevention of waste?
6. If it could be shown that trusts have lowered prices, should that fact exempt them from all interference from legislation?
7. Describe briefly the "unfair practices" of monopolistic corporations. What specific features of the recent railroad and trust legislation are aimed at the prevention of these practices?
8. Is it good public policy to allow a trust to undersell its smaller competitor in one district while it keeps up its prices elsewhere?
9. Are most positive laws intended to hinder competition or make it freer?
10. Copy from the statutes of two states far apart, those sections that pertain to anti-trust or anti-monopoly legislation. Note the general nature of this legislation, special features, penalties for violations, etc., and discuss.
11. What are the main provisions in one of the following: (a) Sherman Anti-Trust Law, (b) Massachusetts Business Corporation Law, (c) The New Companies' Acts, England, (d) German Company Law.
12. Abstract and discuss the Northern Securities decision. Do you see any arguments to be advanced for pooling? Do you think the decision effective in stopping pooling? Ripley (Ed.), Trusts, pools and combinations.
CHAPTER 30
PUBLIC OWNERSHIP
References.
Bemis, E. W., (Ed.), Municipal monopolies. 1899.
Brooks, R. C., Municipal Affairs, 5: 1-346. 1901. (An exhaustive and well-arranged bibliography on all aspects of municipal problems.)
Dewsnup, E. R., The attitude of the state toward railways, a discussion of the question of nationalization. A. E. Assn. Bul., 4th
Fairlie, J. A., Recent extensions of municipal functions in the ser., 1, no. 2: 175-187. 1911. (Vol. of Papers and discussions.)
United States. A. A. A., 25: 299-310. 1905.
Guyot, Yves, Where and why public ownership has failed. Trans. by H. F. Baker. 1914.
Knapp, M. A., Government ownership of railroads. A. A. A., 19: 61-73. 1902.
National Civic Federation, Report on municipal and private operation of public utilities. 1907. 3 vols. (A monumental study by an American delegation, which visited many cities of Europe and America; favorable, in the main, to extension of municipal ownership.)
Winchell, B. L., Drift toward government ownership of railways. Atlan. Mo., 110: 747-758. 1912.
Questions.
1. Does every government enterprise necessarily narrow the field for private enterprise and diminish the amount of competition?
2. What forms of state activity favor survival of unfit men and bad traits of character? What forms help the fittest to survive?
3. What are municipal franchises? Where are they?
4. Why does the public consent to grant patents or public franchises?
5. What kinds of municipal industries have you seen in operation? How successful were they?
6. What are the main arguments for and against the city ownership and control of gas and waterworks? What troubles arise from city politics?
7. Name the industries that are owned and controlled by towns and cities of which you have a personal knowledge.
Which of them are most satisfactory in your judgment? Which the least so?
8. What is the public sentiment in your home community as to the ownership of industries by the town or city?
CHAPTER 31
SOME ASPECTS OF SOCIALISM
References.
Brooks, J. G., The problem of syndicalism. A. E. Rev., 4 (no. 1, supp.): 115-130. 1914. Round table discussion of above, 131-157.
Clark, J. B., Social justice without socialism. 1914.
Ensor, R. C. K., (Ed.), Modern socialism. 2d ed., 1907. (Selections from socialistic sources.)
Gladden, Washington, Tools and the man. 1893. (One example of a large number of American books appealing for the application of Christian ethics to social questions.)
Hillquit, M., History of socialism in the United States. 1903.
Hillquit, M., Socialism in theory and practice. 1909.
Hinds, W. A., American communities. 2d ed., 1908. (Describes many experiments, all failures; by a sympathizer with socialism.)
Kirkup, T., Inquiry into socialism. 3d ed., 1907. (A sympathetic, but not a partizan statement.)
Lockwood, G. B., The New Harmony movement. 2d ed., 1907.
Martin, John, An attempt to define socialism. A. E. Assn. Bul., 4th ser., 1 (no. 2): 347-354. 1911. Round table discussion of above, 355-367.
Menger, A., The right to the whole produce of labor. Trans. 1899. (Masterly criticism.)
Rae, John, Contemporary socialism. 3d ed., 1901. (Standard work by a non-socialist.)
Schaeffle, A., The quintessence of socialism. Ed., 1898. (Exposition by a non-socialist, so favorable that it is used by the socialists as a tract.)
Spahr, C. B., Present distribution of wealth in the United States. 1896.
Spargo, John, Socialism. 1906. (Pro.)
Walling, W. E., Socialism as it is. 1912. (Pro.)
Walling, W. E., and others, The socialism of to-day. 1916. (A source book.)
Watkins, G. P., Growth of large fortunes. 1907.
Wells, H. G., New worlds for old. 1908. (An appeal for juster distribution; Fabian school.)
Questions.
1. In the last analysis is there anyone—retired capitalist or unskilled day-worker—whose title to the real income he receives is derived solely from the property he owns, or solely from the labor he performs?
2. What is it to earn a living? How many people do it?
3. If capital is needed in production why is the question of justice raised when its use is paid for?
4. What is the doctrine of economic harmonies? Give three examples (distinct in kind) in modern legislation which run counter to this doctrine, with the justification for each of these.
5. Define charity. Apply the general principles of charity to free schools, free libraries, and free clothing to school children.
6. What is economic freedom? How different from political freedom?
7. Is custom a better regulator of economic action than competition?
8. What are vested rights? Do they ever stand in the way of progress? Examples.
9. Distinguish between the socialistic and the competitive principles of distribution.
10. What classes of thinkers are most inclined to take up socialism? (Classes considered socially, industrially, as to race, as to economic and historical training.)
11. If socialism reduced the total product, would it still be desirable because of the better distribution?
12. What effect would it have if the state should make laborers work for unsuccessful employers at lower wages than for successful ones? Or should reduce rents for the less capable merchants and manufacturers?
13. Is there any rule for determining the limits of state interference?
14. If you had the power, what single public measure that you believe would be practicable and effective would you put on the statute books, in order to make a juster division of the social income? Give reasons.
15. The wealth of the United States increased from $7,000,000,000 in 1850 to $188,000,000,000 in 1912. How was this wealth distributed according to (a) the socialistic theory of value? (b) the single tax theory? (c) the theory of value under competitive conditions?
16. What are the chief ways in which the rule of competitive value has been nullified in this period.
17. Would socialism guarantee steadiness or regularity in economic activity, thus eliminating the phenomena of economic crises and depressions?
18. In what way does taxation now shift the distribution of real incomes as among persons? By what other methods and in what degree could such taxation be extended?
Transcriber's Notes:
All errors and inconsistencies in spelling, punctuation, and italicization have been retained, except as noted below.
The original did not have a table of contents; one has been added.
On p. 9, the title 'The geography of commerce' had a lower case 't' in 'The' in the original.
On p. 10, the question 'What is meant by the "Factory System"?' appeared in the original as 'What is meant by the "Factory System."'
On p. 12, the question 'What are the principal things besides money uses that cause a demand for gold and silver?' had a full stop (period) instead of a question mark in the original.
On p. 15, in the phrase 'piece of the same denomination' the original had 'demonination'.
On p. 17, in the reference to 'chs. VI, VII, XIII.' the name 'Phillips' was not italicized in the original.
In the table at the top of p. 18 labelled 'Average prices for', there was no comma after 'Wool' in the original.
On p. 18 the penultimate sentence in question 7, with the phrase 'weighting affect your first', lacked a question mark in the original.
On p. 21 question 9, about 'Two men A and B', had 'transacton' instead of 'transaction' in the original.
On p. 23, question 17, 'Suppose that this bank...', had two full stops (periods) instead of one after '$102'.
On p. 38, the hanging indent (if any) after the reference beginning 'Virtue,' was a regular indent in the original.
On p. 42, in the reference beginning 'United States', the abbreviation 'Bul.' was italicized in the original, although it was not italicized in its other occurrences.
On p. 44, the word 'and' in the reference beginning 'Warren, B.' was italicized in the original.
On p. 46, the hanging indent, if any, after the reference to 'The work of rural organization' was a normal indent in the original.
On p. 47, the author of 'Tenancy in the southern states', B. H. Hibbard was shown as H. E. Hibbard in the original.
On p. 49, the question 'How do urban and rural...' had a full stop (period) instead of a question mark in the original.
On p. 53, presumably either the phrase 'these five plants produced 75 per cent.' was meant to be 'these five plants produced 25 per cent.' or the phrase 'the remaining 75 per cent.' was meant to be 'the remaining 25 per cent.'
On p. 55, the initials of LeRossignol were not italicized in the original.
On p. 56, the phrase 'its prices elsewhere' was 'its prices elsewere' in the original.
On p. 58, in the question about the 'doctrine of economic harmonies', the word 'justification' was 'justificaton' in the original.
On p. 59, the question about 'unsuccessful employers' had 'unsuccesful' in the original.
The phrase 'land owners' occurs once in the text; the word 'land-owners', broken across lines, occurs once. This discrepancy has been retained, with the word 'land-owners' rather than 'landowners' being arbitrarily chosen for the latter.