January 11, 1918] 



SCIENCE 



33 



dissolution will be caused by actions less 

 in violation of the law than those which 

 the Steel Corporation has subsequently 

 done at the request of the "War Industries 

 Board. 



But the most curious anomaly of all is 

 that in regard to book paper. The manu- 

 facturers of book paper are indicted for 

 price fixing. The organization under in- 

 dictment is dissolved and several of its 

 members are fined. The court itself then 

 enters into a contract with the.se same 

 manufacturers to fix for three months the 

 maximum price for print paper at some- 

 what lower rates than those fixed by the 

 combination itself. The contract grants 

 authority to the Federal Trade Commission 

 to continue maximum price fixing through- 

 out the war and three months thereafter. 



Regulatory Measures Beneficial 

 Few, I suppose, will question that the reg- 

 ulatory measures authorized by law and 

 those taken, without such authority, have 

 been not only a benefit to the people but 

 essential for the successful proseciition of 

 the war. They have resulted in checking 

 the enhancement of prices for essential 

 commodities which, before these regula- 

 tory measures were enforced, were sailing 

 skyward. Not only have rising prices been 

 checked, but for many of the commodities 

 they have been reduced — for food, fuel, and 

 paper, moderately, and for copper, iron, 

 and steel, largelj''. Also great economies 

 have resulted from dividing orders among 

 the different plants in such a manner that 

 each does the work for which it is best fit- 

 ted and nearest the location at which the 

 commodity will be used. Already great 

 additional economies have come from ope- 

 rating the carriers in such a manner as to 

 reduce cross haulage and to lessen conges- 

 tion. Also through the future operation of 

 the railroads of the country as a unit under 



a Director General vast additional econ- 

 omies are certain to be introduced. 



The diversion of the wheat for export to 

 the South instead of through the congested 

 centers of the North and the East at a 

 time when the transportation facilities of 

 the country are taxed to the utmost is a 

 vast economic gain. Also the diversion of 

 the coal to the upper lake ports in advance 

 of the closing of navigation will prevent 

 great hardship which otherwise would have 

 been inevitable. 



Thus the majority of people will agree 

 that the authorized exemptions from the 

 antitrust laws, the exemptions from these 

 laws by implication, the ignoring of them by 

 the "War Industries Board, and the action 

 of the Court in enforcing them against the 

 manufacturers and itself violating them, 

 have aU been beneficial. 



Reconciliation of Anomalies 

 But the question arises whether all of 

 these anomalies can be reconciled. The 

 answer is yes. Amend the first section of 

 the Sherman antitrust act, which forbids 

 restraint of trade through combination and 

 contract or by monopoly, by adding the 

 clauses, "The restraint of trade meant by 

 this act is that restraint of trade which is 

 detrimental to the public welfare ; and the 

 presumption is that any restraint of trade 

 is thus detrimental and to become legal 

 must be approved by an appropriate gov- 

 ernmental agency." "Without special ex- 

 ceptions, if this amendment were made, it 

 would legalize the cooperation of shipping, 

 the cooperation of the railroads, and the 

 actions of the Fuel and Food Administra- 

 tions, the "War Industries Board, and the 

 Federal Court. 



The facts presented show that coopera- 

 tion by combination, contract, or monopoly 

 may be beneficial or detrimental. Too fre- 

 quently, when the control of the market 



