THE REAL EVIL AND THE REMEDY 385 



The Reply of the Packers. When the above Repor.t of the 

 Federal Trade Commission was published, the packers involved 

 replied that the proposed " remedy" would not result in better 

 prices to producers, or lower prices to consumers, or prove in any 

 way beneficial to the public. The packers very vigorously denied 

 that they " dominated" the live stock market or were able to over- 

 ride the forces of supply and demand. Fluctuations in the prices 

 of live stock and of meats they attributed solely to the two factors 

 of supply of live stock and consumers' demand for meat. 



The Real Evil and the Remedy. The many investigations of 

 the packers have generally been weak either in diagnosis or in 

 therapeutics, or both. The mere bigness of the packers has chal- 

 lenged attention. Their prominent position financial, industrial 

 and otherwise has created a state of mind among many producers 

 and consumers that in these packers was vested autocratic indus- 

 trial power. A popular feeling has been created that these big 

 packers have not merely great power, but irresponsible power. This 

 feeling is more than a mere belief, or mere conviction; it is a state 

 of mind. This is the diagnosis of the situation. And it suggests 

 the remedy. The principle of the cure is simple enough, namely, 

 to preserve the economies of the large-scale business system devel- 

 oped by the packers and at the same time establish what may be 

 termed a ''responsible government" of the packers. This latter 

 phrase needs some further elucidation. 



A quotation was given above from the old Maryland Consti- 

 tution, to illustrate the instinct of our people against autocratic, 

 irresponsible power, both political and economic. Our forefathers 

 established, or attempted to establish, a political government 

 which would reflect and respond to the will of the people governed. 

 The modern industrial clash between large aggregations of capital 

 (popularly and wrongly called " Trusts") and the mass of the 

 people themselves is due to this ancient instinct of abhorrence of 

 irresponsible power. The almost childlike faith in competition as 

 the "life of trade" reflects this same instinct. Hence came our 

 Sherman Anti-Trust law, saying, in substance, "Thou shalt com- 

 pete." And yet some of the most progressive nations have found 

 it wise to pass laws, as concerns certain fields of commerce, saying, 

 in substance, "Thou shalt not compete." 5 



5 The paradox of the Sherman law is apparent. It says, thou shalt compete. 

 In competition (which is industrial warfare) the strong survive, the weak 

 perish. By obeying this law too well, the powerful finally eliminate the weak, 

 and competition ceases. Not to compete is, under the Sherman law, a crime. 

 To compete too well is likewise a crime. 

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