When Senator Davis spoke, few men of great power had the sympathy and the vision necessary to perceive the menace contained in the growth of corporations; and the men who did see the evil were struggling blindly to get rid of it, not by frankly meeting the new situation with new methods, but by insisting upon the entirely futile effort to abolish what modern conditions had rendered absolutely inevitable. Senator Davis was under no such illusion. He realized keenly that it was absolutely impossible to go back to an outworn social status, and that we must abandon definitely the laissez-faire theory of political economy, and fearlessly champion a system of increased Governmental control, paying no heed to the cries of the worthy people who denounce this as Socialistic. He saw that, in order to meet the inevitable increase in the power of corporations produced by modern industrial conditions, it would be necessary to increase in like fashion the activity of the sovereign power which alone could control such corporations. As has been aptly said, the only way to meet a billion-dollar corporation is by invoking the protection of a hundred-billion-dollar government; in other words, of the National Government, for no State Government is strong enough both to do justice to corporations and to exact justice from them. Said Senator Davis in this admirable address, which should be reprinted and distributed broadcast:
"The liberty of the individual has been annihilated by the logical process constructed to maintain it. We have come to a political deification of Mammon. Laissez-faire is not utterly blameworthy. It begat modern democracy, and made the modern republic possible. There can be no doubt of that. But there it reached its limit of political benefaction, and began to incline toward the point where extremes meet. . . . To every assertion that the people in their collective capacity of a government ought to exert their indefeasible right of self-defense, it is said you touch the sacred rights of property."
The Senator then goes on to say that we now have to deal with an oligarchy of wealth, and that the Government must develop power sufficient enough to enable it to do the task.
Few will dispute the fact that the present situation is not satisfactory, and cannot be put on a permanently satisfactory basis unless we put an end to the period of groping and declare for a fixed policy, a policy which shall clearly define and punish wrong-doing, which shall put a stop to the iniquities done in the name of business, but which shall do strict equity to business. We demand that big business give the people a square deal; in return we must insist that when any one engaged in big business honestly endeavors to do right he shall himself be given a square deal; and the first, and most elementary, kind of square deal is to give him in advance full information as to just what he can, and what he cannot, legally and properly do. It is absurd, and much worse than absurd, to treat the deliberate lawbreaker as on an exact par with the man eager to obey the law, whose only desire is to find out from some competent Governmental authority what the law is, and then to live up to it. Moreover, it is absurd to treat the size of a corporation as in itself a crime. As Judge Hook says in his opinion in the Standard Oil Case: "Magnitude of business does not alone constitute a monopoly . . . the genius and industry of man when kept to ethical standards still have full play, and what he achieves is his . . . success and magnitude of business, the rewards of fair and honorable endeavor [are not forbidden] . . . [the public welfare is threatened only when success is attained] by wrongful or unlawful methods." Size may, and in my opinion does, make a corporation fraught with potential menace to the community; and may, and in my opinion should, therefore make it incumbent upon the community to exercise through its administrative (not merely through its judicial) officers a strict supervision over that corporation in order to see that it does not go wrong; but the size in itself does not signify wrong-doing, and should not be held to signify wrong-doing.
Not only should any huge corporation which has gained its position by unfair methods, and by interference with the rights of others, by demoralizing and corrupt practices, in short, by sheer baseness and wrong-doing, be broken up, but it should be made the business of some administrative governmental body, by constant supervision, to see that it does not come together again, save under such strict control as shall insure the community against all repetition of the bad conduct—and it should never be permitted thus to assemble its parts as long as these parts are under the control of the original offenders, for actual experience has shown that these men are, from the standpoint of the people at large, unfit to be trusted with the power implied in the management of a large corporation. But nothing of importance is gained by breaking up a huge inter-State and international industrial organization which has not offended otherwise than by its size, into a number of small concerns without any attempt to regulate the way in which those concerns as a whole shall do business. Nothing is gained by depriving the American Nation of good weapons wherewith to fight in the great field of international industrial competition. Those who would seek to restore the days of unlimited and uncontrolled competition, and who believe that a panacea for our industrial and economic ills is to be found in the mere breaking up of all big corporations, simply because they are big, are attempting not only the impossible, but what, if possible, would be undesirable. They are acting as we should act if we tried to dam the Mississippi, to stop its flow outright. The effort would be certain to result in failure and disaster; we would have attempted the impossible, and so would have achieved nothing, or worse than nothing. But by building levees along the Mississippi, not seeking to dam the stream, but to control it, we are able to achieve our object and to confer inestimable good in the course of so doing.
This Nation should definitely adopt the policy of attacking, not the mere fact of combination, but the evils and wrong-doing which so frequently accompany combination. The fact that a combination is very big is ample reason for exercising a close and jealous supervision over it, because its size renders it potent for mischief; but it should not be punished unless it actually does the mischief; it should merely be so supervised and controlled as to guarantee us, the people, against its doing mischief. We should not strive for a policy of unregulated competition and of the destruction of all big corporations, that is, of all the most efficient business industries in the land. Nor should we persevere in the hopeless experiment of trying to regulate these industries by means only of lawsuits, each lasting several years, and of uncertain result. We should enter upon a course of supervision, control, and regulation of these great corporations—a regulation which we should not fear, if necessary, to bring to the point of control of monopoly prices, just as in exceptional cases railway rates are now regulated. Either the Bureau of Corporations should be authorized, or some other governmental body similar to the Inter-State Commerce Commission should be created, to exercise this supervision, this authoritative control. When once immoral business practices have been eliminated by such control, competition will thereby be again revived as a healthy factor, although not as formerly an all-sufficient factor, in keeping the general business situation sound. Wherever immoral business practices still obtain—as they obtained in the cases of the Standard Oil Trust and Tobacco Trust—the Anti-Trust Law can be invoked; and wherever such a prosecution is successful, and the courts declare a corporation to possess a monopolistic character, then that corporation should be completely dissolved, and the parts ought never to be again assembled save on whatever terms and under whatever conditions may be imposed by the governmental body in which is vested the regulatory power. Methods can readily be devised by which corporations sincerely desiring to act fairly and honestly can on their own initiative come under this thoroughgoing administrative control by the Government and thereby be free from the working of the Anti-Trust Law. But the law will remain to be invoked against wrongdoers; and under such conditions it could be invoked far more vigorously and successfully than at present.
It is not necessary in an article like this to attempt to work out such a plan in detail. It can assuredly be worked out. Moreover, in my opinion, substantially some such plan must be worked out or business chaos will continue. Wrongdoing such as was perpetrated by the Standard Oil