ieties of unfair competition may be roughly
grouped under three headings according as they are connected with (1)
Illegal favors received from public or quasi-public officials; (2)
Discrimination against, or control of, customers; (3) Foul tactics
against competitors.
(1) Among the practices in the first group are discriminatory rates
and rebates from railroads, favoritism in matters of taxation, undue
influence in legislatures, special manipulation of tariff rates
through powerful lobbies, or paid agents, undue influence in the
courts through the employment of lawyers of the highest talent, who
often later became judges.
(2) Among the unfair practices toward customers are discriminations
among them by the various forms of price cutting, grants of credit,
and kinds of service. The liberty of retail dealers is limited in
a variety of ways, such as fixing resale prices, requirement of
exclusive dealing, and full-line forcing.
(3) All the methods just mentioned as employed in dealings with
customers are likewise unfair toward competitors. Many other methods
are used to the same end, such as: enticing away their employees,
or corrupting and bribing them to act as spies, paying secret
commissions, false advertising, misrepresenting competitors, imitating
their patterns in goods of defective workmanship, shutting off their
credit or their supplies of materials, acquiring stock in competing
companies, malicious suits, infringement of patents, intimidation by
threats of business injury or of scandalous exposures, operation of
bogus independent companies.
Sec. 16. #Growing conception of fair competition.# Any industrial trust
that was able to gain domination and monopoly power only by the use of
such practices, or any part of them, can hardly be deemed the result
of a "natural evolution." If "artificial" means the use of artifices
surely this development deserves the adjective. Yet even if not
natural, this development may be thought to be "inevitable," human
nature being as it is. But the bald fact is that while the great trust
movement was in progress no effort worthy of the name was being made
to enforce even the then existing laws and to oppose this artificial
development. The same allegation of inevitableness was once commonly
made of discriminatory railroad rates and rebates, evils which have
been in large part remedied only since the period 1903-1906, when at
last intelligent action was taken.
To those that ca
|