viii PREFACE TO FOURTH EDITION show remedies for the evils of industrial combinations that have been proposed by those who have given very careful study to the subject. Appendix D, in giving outline histories of representative industrial combinations, shows, not only economic results springing from these great business organizations, but also the influence of Governmental action upon them. In the succeeding appendices are given in sufficient detail the laws of the United States and foreign countries, so that the reader can make a reasonably accurate comparison of the attitude toward these combinations of various Governments under different economic conditions. It is believed that enough of this material has been given to form the basis for an excellent course for any group of university students without going outside of the volume itself. Although, of course, the advantage of wide reading in the libraries is not to be overlooked. The history of the years since the publication of the preceding edition, though fruitful in experience and in legislation, shows no need of change in the judgment of fundamental principles. Slight changes in emphasis may be noted. The degree of monopoly power that can be exercised by the capitalistic combinations, for example, is apparently somewhat less than we earlier thought, while the regulative power of competition and of public opinion is somewhat more. New York, July, 1917. The Assumption of "Free Competition" 3. Competition Among Wholesalers and Manufacturers 39 TOPICS 49 Elimination of Cross Freight Charges (6) Can Run Plants Steadily at Full Capacity (10) Can Specialize the Labor Force (11) Combination Makes Comparative Accounting Great Capital May Gain Monopolistic Powers Through Cost Savings and Through Competitor's Fear 5. Market Leadership Now Preferred to Complete 89 THE BASIS OF CAPITALIZATION Argument Favoring Earning Capacity Capitalization. 4. Dangers of Earning Capacity Capitalization |