in any effective way
protect their competitors. Unquestionably these large corporations have
in the past thrived partly on illegal favors, such as rebates, which
would be prevented by the official programme of regulation; but at the
present time the advantage which they enjoy over their competitors is
independent of such practices. It depends upon their capture and
occupation of certain essential strategic positions in the economic
battle-field. It depends upon abundant capital, which enables it to take
advantage of every opportunity, and to buy and sell to the best
advantage. It depends upon the permanent appropriation of essential
supplies of raw materials, such as iron ore and coal, or of terminals in
large cities, which cannot now be duplicated. It depends upon
possibilities of economic industrial management and of the systematic
development of individual industrial ability and experience which exist
to a peculiar degree in large industrial enterprises. None of these
sources of economic efficiency will be in any way diminished by the
official programme of regulation. The corporations will still possess
substantially all of their existing advantages over their competitors,
while to these will be added the additional one of an unimpeachable
legal standing. Like the life insurance companies after the process of
purgation, they will be able largely to reduce expenses by abolishing
their departments of doubtful law.

Thus the recognition of the large corporation is equivalent to the
perpetuation of its existing advantages. It is not an explicit
discrimination against their smaller competitors, but it amounts to such
discrimination. If the small competitor is to be allowed a chance of
regaining his former economic importance, he must receive the active
assistance of the government. Its policy must become, not one of
recognition, but one of recognition under conditions which would impair
the efficiency of the large industrial organizations. Mr. William J.
Bryan's policy of a Federal license granted only under certain rigid
conditions as to size, is aimed precisely at the impairment of the
efficiency of the "trusts," and the consequent active discrimination in
favor of the small competitor; but the Roosevelt-Taft programme allows
the small competitor only such advantages as he is capable of earning
for himself; and it must be admitted that these advantages are,
particularly in certain dominant industries, not of a very enc