222 ORAL ARGUMENT OF JAMES C. CARTER, ESQ. 



because the United States happens to have those particular islands. 

 The possession of them, the sovereignty over them must be awarded to 

 some nation, and therefore a monopoly is in a certain sense necessary. 

 But is it an injurious monopolv, is it an objectionable monopoly? Not 

 at all. 



Senator Morgan. The islands were bought chiefly on that account, 

 were they not? 



Mr. Carter. I do not know that they were. I hardly think they 

 were. 



Senator Morgan. What else was there? 



Mr. Carter. There was not much else except territory. It is some- 

 times said that they were bought on that account, and there are some 

 evidences that I have read tending to show that that was one of the main 

 considerations; but whether that was the real motive or not I cannot 

 say. I do not resort to that as furnishing the slightest strength to my 

 argument. It is just as powerful without it. 1 am speaking as to 

 whether it is a monopoly or not. When does a monopoly became injuri- 

 ous to man '1 It is only when it is an artifieitd monopoly. If there is a 

 natural monopoly in a particular product and the whole annual supjdy 

 of that particular product is thrown upon the world the price of it will 

 necessarily depend ui)on the relation between the supply and the 

 demand. Sometimes there is a monopoly in a particular region of the 

 world of a particular article, but the supply is yet so abundant that 

 if the whole product of that particular region were thrown upon the 

 market iAxa price of it would be extremely low, and pay but a small 

 profit and mankind would get it at a very low rate. That is supposed 

 to have once been the case with the Spice Islands, belonging to Hoi 

 land. If all the pepper and other spices produced upon those islands 

 were thrown upon the markets of the world, they would be glutted. 

 The world would get them at a very trifling sum and the producers of 

 the spices would make no profit at all. What did the proprietors of the 

 Spice Islands do? They did not simply tcithhold from the market, for 

 that would answer no purpose; but they made an artificial scarcity by 

 destroying half the crop, and the world needing more than half, they 

 were enabled to exact very high prices and to make a great i)rofit. 

 That is the only way in which a monopoly of a natural production can 

 be made use of unfairly and disadvantageously to mankind, and be 

 made the means of exacting an extoitionate price. You must artiji- 

 cially limit the supply. But not only has that m>.ver been done here, but 

 it never can be done. I say it never can be done, because no profit can 

 ever be found in it. There is a demand for every seal skin that can be 

 produced, and a profitable demand; and the whole supply is thrown 

 u])on the market. There is not one withheld. The world is not com- 

 pelled to take a single seal; and if there is a large price paid for the 

 seals under those circumstances, that i)rice is simply the result of com- 

 l)etition among those who want them. If anybody is required to pay a 

 large price for them, it is because somebody else is ready to pay a large 

 price. They are all contributed to the commerce of the world, as I have 

 already said, just as if they were put up at auction. The world bids 

 for them and they go where the highest price can be obtained for them. 



If the lessees of the Islands under thos« circumstances nmke, as they 

 probably do make, a large profit, is there anything unfair or unjust 

 about it? Taking into account what is paid to the United States 

 and the profits of the lessees besides, all of which must be fairly 

 regarded as the profits of the industry, there is of course a very huge 

 profit upon every skin that is sold; that is to say, the price of the skins 



