34 



SCIENCE 



[N. S. Vol. XLVH. No. 1202 



and monopoly have been in private hands 

 without regulation, it has been detrimental ; 

 indeed so detrimental that this led to the 

 enactment of the antitrust laws. When the 

 control of the market or monopoly is, how- 

 ever, subject to governmental regulation, 

 it may be highly beneficial; not only bene- 

 ficial, but at a time of war, absolutely es- 

 sential. The sanction, as far as public 

 opinion is concerned, of all of the regula- 

 tory measures in regard to ships, railroads, 

 food, fuel, copper, iron, steel, and paper, 

 is that they have been a benefit to the 

 people and have been essential for the 

 successful prosecution of the war. There 

 would have been no question about the 

 legality and propriety of these acts, had the 

 Sherman Act been amended in accordance 

 with the suggestion made. 



THE CONTINUATION OP KEGUIiATION AFTEE 

 THE WAE 



All the regulatory measures considered 

 are for the duration of the war or for a 

 limited period thereafter. If no action is 

 taken by Congress, they will expire at 

 varying intervals following the conclusion 

 of peace. 



Future Regulation to he liased upon the 

 Puilic Interest 

 The regulatory laws discussed are all 

 based upon the war powers of Congress. 

 In each one of them it is declared that the 

 act is necessary for the public security and 

 defense. If they are to be continued after 

 the war, it must be upon the basis that the 

 matters with which they deal are affected 

 with a public interest; that is, the regula- 

 tion, if continued, must be on the same 

 principle as that which applies to the public 

 utilities. Many of the utilities have re- 

 ceived special privileges involving fran- 

 chises; but irrespective of this, it is well 

 established that regulation may be applied 



to any business which is affected with a 

 public interest. This goes back to the 

 grain-elevator case, in which this broad 

 principle was definitely settled. Can any 

 one doubt that the business of an organi- 

 zation which controls half of the iron ore 

 resources of the country, a large percent- 

 age of the coking coal, and manufactures 

 half of the iron and steel of the nation is 

 affected with a public interest? Or that 

 the same is true of dealings in the most 

 fundamental food commodities, such as 

 wheat, sugar, meats, and fats? Therefore, 

 undoubtedly Congress has the power to 

 continue the regulatory measures after the 

 war. This then raises the question should 

 they be allowed to expire or be continued. 

 The obvious general answer is that so far 

 as they wiU be beneficial to the public they 

 should be continued, but so far as they will 

 be detrimental they should terminate. The 

 difficulty will be in indicating those meas- 

 ures which under normal conditions will 

 be beneficial and those that will be detri- 

 mental. In considering this problem, there 

 are certain general considerations which 

 should have weight. 



Regulation Necessary to meet Foreign 

 Competition 



It is certain, that, following the war, 

 combination abroad will be general. Al- 

 ready Germany is considering buying and 

 selling nationally; and whether or not she 

 decides to do this as a direct governmental 

 activity, there is no question that the trad- 

 ing by Germany in any commodity will be 

 done, if not through a single organization, 

 at least through such a limited number 

 that they will perfectly cooperate in their 

 production and distribution. 



Furthermore, it is highly probable that 

 this cooperation will be extended so as to 

 include her allies. Under these circum- 

 stances it is certain that any attempt to 



