THE TRUST QUESTION

AND

A CHOICE BETWEEN PRIVATE MONOPOLY AND
COLLECTIVE OWNERSHIP.

FROM THE REMARKS

OF

HON. FINLY H. GRAY,

OF INDIANA,

IN THE HOUSE OF REPRESENTATIVES,

Thursday, October 8, 1914.

The House had under consideration the conference report on the bill (H. R. 15657) to supplement existing laws against unlawful restraints and monopolies, and for other purposes.

Mr. WEBB. Mr. Speaker, I yield two minutes to the gentleman from Indiana [Mr. GRAY].

Mr. GRAY. Mr. Speaker, while it may be true that this bill does not include full and complete provision for adequate relief against trusts, I am convinced that it is an improvement over existing law, and will be more effective to destroy monopoly, so far as it is possible to remedy these evils by regulation. And while I will give my support to this bill as the best obtainable measure for relief at this time by regulation, I confess that I am not optimistic as to the success of this or any antitrust legislation to restore competition and equal opportunity to men in the world of industry and trade.

The greed for wealth and power is never satisfied, and I do not believe that the interests which have organized these combinations will ever submit to regulation or allow this or any other law to be enforced against them. They have become the rivals in power of the Government itself, and they will use the power they have thus acquired to resist all attempts at regulation and control.

We have to-day three general systems of industry of which we know. The competitive system of industry, under which

prices are fixed and determined by competition or by the selling rate of the lowest producing factor. The monopolistic system of industry under which prices are fixed by the arbitrary rule of controlling interests and at the highest point within the ability of the consuming public to pay, or monopoly for the benefit of the especial few. And the cooperative system of industry, under which prices are determined by the cost of production, or monopoly for the benefit of all the people.

While I favor the competitive system of industry as stimulating individual effort, responsibility, and initiative, yet when all antitrust remedies shall have been exhausted and regulation fails to restore competition and equal opportunity in the industrial world, and when I must choose between private monopoly for the benefit of the few, and the cooperative system, or monopoly for the benefit of all the people. I will choose cooperation and collective ownership. I will choose monopoly for all the people before I will submit to private monopoly for the exploitation of the masses for the benefit of the few. If trusts and monopolies must exist, let them be operated for the public good and not for selfish gain. If competition can not be restored, let the people own the trusts. [Applause.] 66132-14236

2

2

ANTITRUST LEGISLATION

The Democratic Party has no quarrel with legitimate business, and never has had. The message of President Wilson in January was one of reassurance, and in that spirit it was accepted by the world of business. He voiced the opinion of the American people that competition must be restored; that indefensible methods had been employed by the combinations known as trusts, and that legislation was needed in order to safeguard the American people, as a whole, and the business of the Nation, little as well as big.

SPEECH

OF

HON. GUY T. HELVERING

OF KANSAS

IN THE

HOUSE OF REPRESENTATIVES

MAY 23, 1914

WASHINGTON

GOVERNMENT PRINTING OFFICE

1914

SPEECH

OF

HON. GUY T. HELVERING.

The House in Committee of the Whole House on the state of the Union had under consideration the bill (H. R. 15657) to supplement existing laws against unlawful restraints and monopolies, and for other purposes.

Mr. HELVERING. Mr. Chairman, the specific work before us at the present time is to crystallize into legislation the last of the three most important pledges which we have made to the American people. In doing this we are at the same time offering to our friends in all parties the opportunity to show that their promises were made to be kept. We are practically all agreed as to the evils of trusts and of combinations; the people of the country are united in the determination that there must come a readjustment of conditions in the business world, and that this can be brought about only by a return to normal conditions and the elimination of the abnormal which have been brought into existence through the greed for gain and have continued to exist only by reason of legislative neglect. The evils complained of have grown up quite often in a quasi-legal manner; special privilege had the power to have and to hold the best of legal advice and was able to live within the letter of the law while continually violating its spirit. It has taken time for us to realize by experience the loopholes in law which gave the opportunity for its violation, and we are now engaged in the work of legislating along the line which experience has demonstrated to be necessary.

In his address at the joint session of Congress, on January 20, President Wilson said:

It will be understood that our object is not to unsettle business or anywhere seriously to break its established course athwart. On the contrary, we desire the laws we are now about to pass to be the bulwarks and safeguards of industry against the forces who have disturbed it. What we have to do can be done in a new spirit, in thoughtful moderation, without revolution of any untoward kind.

And that is exactly the spirit by which the Democratic Party is actuated. We would encourage every legitimate industry of the Nation and we can best do this by insuring to them fair play. We may, and undoubtedly will, harass the feelings of those who work illegitimately, but that is essential. Criminal laws are enacted, not because all men are criminals, but because honest men, and society in general, must be protected against the dishonest. Such laws are essential for the protection of society, and we believe that the legislation now under consideration is equally essential if we are to restore business to the plane of justice, throw down the bars which are keeping out the intelligent youth of the land from the field of opportunity, and give to the American people the protection which is essential if they are to be masters of their own destiny.