“Under such a system the administration of public affairs becomes at once, simple, direct and business-like. If any outside corrupt influences seek to creep in, they are easy of detection and the punishment can be made swift and certain.”
“I want to thank you again, Senator Selwyn, for the help you have been to me in giving me the benefit of your ripe experience in public affairs,” said Dru, “and there is another phase of the subject that I would like to discuss with you. I have thought long and seriously how to overcome the fixing of prices by individuals and corporations, and how the people may be protected from that form of robbery.
“When there is a monopoly or trust, it is easy to locate the offense, but it is a different proposition when one must needs deal with a large number of corporations and individuals, who, under the guise of competition, have an understanding, both as to prices and territory to be served.
“For instance, the coal dealers, at the beginning of winter, announce a fixed price for coal. If there are fifty of them and all are approached, not one of them will vary his quotation from the other forty-nine. If he should do so, the coal operators would be informed and the offending dealer would find, by some pretext or another, his supply cut off.
“We see the same condition regarding large supply and manufacturing concerns which cover the country with their very essential products. A keen rivalry is apparent, and competitive bids in sealed envelopes are made when requested, but as a matter of fact, we know that there is no competition. Can you give me any information upon this matter?”
“There are many and devious ways by which the law can be evaded and by which the despoliation of the public may be accomplished,” said Selwyn. “The representatives of those large business concerns meet and a map of the United States is spread out before them. This map is regarded by them very much as if it were a huge pie that is to be divided according to the capacity of each to absorb and digest his share. The territory is not squared off, that is, taking in whole sections of contiguous country, but in a much more subtle way, so that the delusion of competition may be undisturbed. When several of these concerns are requested to make prices, they readily comply and seem eager for the order. The delusion extends even to their agents, who are as innocent as the would-be purchaser of the real conditions, and are doing their utmost to obtain the business. The concern in whose assigned territory the business originates, makes the price and informs its supposed rivals of its bid, so that they may each make one slightly higher.”
“Which goes to show,” said Dru, “how easy it is to exploit the public when there is harmony among the exploiters. There seems to me to be two evils involved in this problem, Senator Selwyn, one is the undue cost to the people, and the other, but lesser, evil, is the protection of incompetency.
“It is not the survival of the fittest, but an excess of profits, that enables the incompetent to live and thrive.”
After a long and exhaustive study of this problem, the Administrator directed his legal advisers to incorporate his views into law.
No individual as such, was to be permitted to deal in what might be termed products of the natural resources of the country, unless he subjected himself to all the publicity and penalties that would accrue to a corporation, under the new corporate regulations.