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insist upon the rights of every man, or of ence between restraint of competition and every company, to enjoy free competition, restraint of trade. Give every one free under equitable regulation that would pre- choice,
choice, equal opportunity, and abolish clude the enjoyment of special privileges. special privileges, and there ought to be no
Free competition implies the right of restraint of trade, it is said. Is that true? labor or of capital to enter any occupation Perhaps we might as well face the fact or branch of business without barriers that free opportunity for skill and superioragainst equal opportunity.
ity inevitably carries with it This right implies equal op
more or less of the adportunity for a man to exer
vantages of monopoly. cise to the full his skill,
Among working judgment, and experience.
men, for instance, Men vary in industrial
the highly skilled ability, and always have
man is, by virso varied.
tue of his skill, Hence, free competition
protected from will inevitably result in
the competition the increasing accumula
of the less skilled; tion of capital by the
and he occupies thrifty, and in the enlarg
a position of ing volume of business by
natural mothe most efficient.
nopoly. Inequality of business
Skill is only operations is the inevi
another way of table consequence of
spelling monopoly. the world's increase of
What is the nub wealth and the vary
of the whole mating endowments of hu
ter? It beman beings, where free
comes plain competition exists.
that society, In perfectly legitimate
while willindustry, bigness will
ing to result from equality
allow of treatment. That
bigness truth is based on
and to enthe industrial expe
courage effirience of the race.
must In a big country
insist that the conof big wealth, big
queror in the strugness of industry
Wm. E. Bemis, vice-presi- gle shall not use is a matter
dent and director of the
his power and su
Standard Oil Company of of course.
periority to the detWithout
riment of society. doubt, all
For instance, if a shipping business has will admit
grown up from small beginnings until it this con
does 85 per cent. of the trade, and if clusion.
other smaller competitors arise who, atBut,
tracted by the success of the one large neverthe
company, have lowered the share of less, it
trade of the big competitor to 60 per will be
cent., is it morally wrong for the large said that
organization to lower the price of the finif we be
ished product to the consumer, and thus relieve in free
gain its old predominance in the industry? competition,
If the lower price is maintained-and not we cannot believe in monopoly used merely as a temporary device to oust It is said that there is a differ- competitors-society is the gainer by the
results of the struggle between competitors. as criminals because they have only been Obviously, it is the duty of society to try superior in efficiency over their competitors. to retain such results of superior efficiency If their success has won them a natural as these. And this efficiency may still be monopoly, why should they not retain it? obtained when production goes on on a Under free competition and fair play, just large scale.
as soon as this ceases to be a monopoly due Bigness may be a mark of efficiency. to superiority, then their supremacy ends;
We often confuse bigness and monopoly. and another competitor whose industrial As already said, superiority inevitably superiority is greater assumes the lead. brings with it a natural monopoly. But Finally, what is the practical remedy? what lies vaguely in the common mind is First-A law that can be understood as probably a dislike of artificial monopoly; clearly as the law against theft or arson. that is, an antagonism to bigness not due Let the offense against society be stated to economic superiority or efficiency, but to plainly enough to be understood, or not some special favors, or to the possession of stated at all. Blundering on a national unfair advantages. This is probably the scale is no fun for the producer, or for the crux of the whole matter. The widespread men thrown out of employment by reason of feeling of hostility to trusts is doubtless uncertainty as to what the law means. traceable to opposition to bigness that is Have no mercy on wrongdoing, injustice, based on artificial monopolies.
or industrial tyranny, but be intelligent in Consequently, any laws that grant special defining what is meant by those terms. favors to any one class are against the Second-Create publicity, so far as posinterests of society, and should not be al- sible. To be sure, private business cannot lowed to create a monopoly.
be treated in the same way as quasi-public In short, we come face to face with the agencies like railways. But it may be fact that large business is not in itself the price of bigness that it should prove inimical to society; but, in truth, that it is its legitimacy and show its service to soessential to progress.
ciety by such publicity of accounts and Also, that large production based on a costs as would free it from attack and save natural monopoly is a gain to society. it from the possibility of any charge that it
That is, we have here the vexed question was using its power to reap where it has not of distinguishing between "good" and sown. “bad” trusts.
Third--If only general principles of law This distinction is one that we cannot can yet be laid down regarding an evolution blink. It is against all common sense to of business organization that has not been attack everything that is large, or even a fully understood, then give up stupid atthing that is large if based on the natural tempts at abolition and destruction, and monopoly of superior efficiency.
establish regulation through some advisory The fundamental test of “badness" or or executive board of trade. If composed “goodness” must certainly be whether the of men of high character, ability, courage, trust is an artificial monopoly, or not. and experience--after the fashion of the Remove special privileges and the test is English Board of Trade such a commiseasily made.
sion could be trusted to decide whether any Now, if we were clear-headed enough to business was based on an artificial monopoly make this distinction, we should be able to and was opposed to the general good of avoid the action by the Government that society; and it could recommend the abolicuts so deeply into the feeling of self-respect tion of specific privileges on which monopoly held by many honorable, upright men who was based. Then honorable business suchave succeeded in building up a large busi- cess need not be stung by a criminal prosecuness by legitimate means through their in- tion. Reserve such prosecution for the dustrial superiority over rivals.
artificial monopolies and for those who have Such men rightly object to being regarded gained wealth by unfair means.
EDITOR'S NOTE.—The facts contained in the following story, which have been carefully verified, show that neither life nor property is safe in Mexico. The so-called revolution has never ceased. It has grown. Almost unbelievable outrages are of common occurrence. The situation is intolerable. The present régime seems helpless. What is to be done?
EXICO is to-day in a condition of chronic revolt.
but the beginning of a reign of terror, which had I after Madero's election to the presi
been freely predicted, and which now, ten weeks dency, has bloomed into a bloody cataclysm.
There are more men under arms in Mexico to-day than there were during the revolution. Foreigners are fleeing as they did not while Diaz was still there. Spaniards and Germans, Frenchmen and Englishmen are constantly insulted and frequently killed. Americans by the hundreds are leaving, while many have been killed. From the beginning of the revolution, November 18, 1910, to date, December 12, 1911, seventy
lution that drove Diaz from power was but the be ginning of a reign of terror
seven Americans are known to have been Madero was elected—there may have been killed, three as recently as November 15.* some apparent excuse for the upheaval,
Marauding bands of revolutionists (so- although De la Barra was said to be a called) overrun the country, especially the fairly competent executive and Madero was south and west. Bandits, who vary in num- actually, if not nominally in power. Howber from groups of half a dozen to armies ever, during those ten weeks, there were at of several thousand, are loose and devastat- least two battles of considerable size; one, ing. Federals, who go out to attack these on July 13, when 377 rebels were killed, turbulent elements, sometimes join with with no account of the federal dead, and them and sometimes, themselves, become one from September 24 to 27, when upward looters and assassins.
of 500 were killed and thrown into the Some of the atrocities committed are too Grijalva River. horrible to describe in print, and the mild- Still, it is more important to consider the est form of murder, execution by shooting, ten weeks that have elapsed since Madero is performed with no pretense at formal became president in name, as he has been trial. The grosser forms of murder and in fact ever since Diaz resigned. On the assault are of frequent enough and of recent very day of his election, October 1, there enough occurrence to justify the statement was a battle at San Juan del Rio, in the that Madero has utterly failed to pacify his state of Morelos, in which forty were killed. distressed country.
During the week following, there was desThe diary of events from the day on which perate fighting, among small and roving Diaz resigned, May 25, 1911, to the day on bands, throughout the states of Morelos, which this is written, December 12, 1911 Oaxaca, and Guerrero, with no definite ac(which is printed on pages 1594-1595) must be count of the killed or wounded. studied carefully before a detailed descrip- On October 6, in the city of Chicuazan tion is given of a few of the salient and in the state of Chiapas, correspondents of significant facts of the revolt.
reputable papers were present and recorded This diary is made from accounts pub- that sixty-five were killed and scores lished in Mexican newspapers, printed in wounded. On the following day, the fedSpanish, with the exception of the Mexican erals and the Chamula Indians fought until Herald, which is printed in English. So 200 were killed and wounded. Three days that it may not be thought that I have later, in a fight at Chiapa de Corzo, thirty chosen anti-administration papers, it must were killed and forty wounded. The next be stated here that all my printed sources day, the city of Jonacatepec was besieged of information are professedly in favor of by 1,500 bandits, and no record has ever Madero, and that their record of events is been obtained of the atrocities committed more likely to err on the side of suppression or of the lives lost. On such an occasion, than of exaggeration.
every one flees in terror, newspaper correSuch news, save in the most diluted form, spondents with the rest, and for days, and does not get through to the United States. often for weeks, no one revisits the scene. This country has taken it for granted that On October 28 there was fighting in the election of Madero settled the Mexican practically every state in Mexico. The problem for some time to come; and when, only state in which I find no record of as has occasionally happened, accounts of fighting is Jalisco. On this day, in the state killings have appeared, it has been said, in of Sonora, which had been quiet for several explanation, either that they were exagger- months, perhaps because it lies contiguous ated or that it was only natural to expect to the southern border of the United States, a few isolated cases of lawlessness, immedi- 138 are known to have been killed. ately following the removal of a despotism On November 1, a battle lasted for five so long and so patiently endured.
hours on the streets of Torreon; casualties However, they are not isolated cases, nor unreported, presumed to be in the hundreds. is the Mexican problem settled. The "cases." Two days later, a hundred rebels were are massacres, the “incidents" battles. killed in Juchitan, and the papers, with the
During the interregnum-from May 25, evident hope of allaying prejudice in the when Diaz resigned, to October 1, when City of Mexico, gave no account of the
* December 19. Frank Gillette, sugar planter, born federals lost. Cleveland, Ohio, killed by bandits at Mazatlan, Sinaloa. Wife outraged.
On November 5, the day before Madero
was sworn in as president, a new revolution was launched in favor of Chè Gomez, and another hundred rebels were reported killed in Juchitán.
Inauguration day, the hordes of Zapata were loose, committing atrocities all through the state of Morelos and in parts of Oaxaca and Guerrero. The day afterward, an eye-witness, corroborated by numerous others, states that a thousand corpses littered the streets of Juchitan. Many of them were stacked up into ' barriers behind which the rebel followers of Chè Gomez fought. The next day, in a battle at Morelia, only twenty-five were killed. The count was accurate there, for the corpses had not been hurled together in piles.
By the middle of November, six weeks after Madero was elected, and a week after he had been inaugurated, the revolt exCarting away the dead after a
tended over the entire Republic. There were uprisings in every state. The sit
uation in Mexico was worse than it had been at any time since Diaz first assumed power, thirty-seven years before.
On the fifteenth of November, there were at least seven battles in the states of Sonora and Morelos. Among the foreigners killed were three Americans who had taken no part in the fighting, who had been employed for some time in peaceable pursuits. On that
day, the Yaqui Indians took the war-path. On that day also, there was a panic in Torreon, and 8,000 workmen went on strike, while great numbers of foreigners started