To strengthen the Sherman law, the Clayton Trust Bill was passed and approved 12 Feb. 1913. This prohibited certain monopolizing con tracts, popularly called '
The trusts are not the menace to democracy that they have been pictured; they have im proved methods and reduced costs in many ways; they have shown that competition is not the life of trade, that it entails much waste; in many lines of endeavor they have built up great businesses legitimately and won success because they deserved it; in other lines, though they monopolized, they now so control. everything that it cannot be taken away from them, as there are no other concerns that know how to handle the business. Germany has demon strated to us that concentration of interests tends to reduce costs and increase efficiency.
Their form of monopoly was called the kartell, and in some of them, as the potash and sugar kartells, the government participated. Ameri can industry must maintain and improve its efficiency, and big business must continue wherever it handles things better than can groups of small concerns. It appears that we cannot crush the trusts if we would, for the trusts represent both the capital and the brains of American industry. Therefore the trusts must be reformed where they need reforming.
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