CHARLES R. VAN HISE

In this country in colonial days the laws were very strict against combinations and contracts in restraint of trade. But here again there was a gradual amelioration of the laws, until co-operation was permitted along many lines, including division of territory, limitation of output, and even fixing of prices; provided always that, as a result of the co-operation, the combinations or contracts did not result in monopoly, were not general, were not immoral, and were not contrary to public policy.

Many advantages … may be gained through the establishment of trade commissions, national and state. At first, we should be conservative in giving additional powers to these commissions. The powers given should be based upon the same principles that have been applied in the pure-food laws, and in the control of the public utilities. The American people always move slowly in these matters, and step by step. I should not expect that these trade commissions, if created, would at once be granted all the powers which they would finally exercise. In this matter I should expect the same slow development to take place that has occurred regarding the commissions which control the public utilities.

I am just as anxious as Mr. Brandeis can be, to have trade regulated by competition as far as possible; but as a matter of fact, competition has broken down hopelessly in this country to adequately control prices, to adequately control quality, and we all know it… it is the theory regarding competition that it will regulate prices and quality; that it will give us reasonable prices and superior quality. That is a beautiful theory. But if this theory has ever corresponded to the facts in the past (and this I doubt) we may be sure that in the future it will never again do so.

I am just as anxious as Mr. Brandeis can be, to have trade regulated by competition as far as possible; but as a matter of fact, competition has broken down hopelessly in this country to adequately control prices, to adequately control quality, and we all know it… it is the theory regarding competition that it will regulate prices and quality; that it will give us reasonable prices and superior quality. That is a beautiful theory. But if this theory has ever corresponded to the facts in the past (and this I doubt) we may be sure that in the future it will never again do so.

In this country in colonial days the laws were very strict against combinations and contracts in restraint of trade. But here again there was a gradual amelioration of the laws, until co-operation was permitted along many lines, including division of territory, limitation of output, and even fixing of prices; provided always that, as a result of the co-operation, the combinations or contracts did not result in monopoly, were not general, were not immoral, and were not contrary to public policy.

Many advantages … may be gained through the establishment of trade commissions, national and state. At first, we should be conservative in giving additional powers to these commissions. The powers given should be based upon the same principles that have been applied in the pure-food laws, and in the control of the public utilities. The American people always move slowly in these matters, and step by step. I should not expect that these trade commissions, if created, would at once be granted all the powers which they would finally exercise. In this matter I should expect the same slow development to take place that has occurred regarding the commissions which control the public utilities.