Corporations, argued Dru, could be dealt with under the new laws in a way that, while fair to them, would protect the public. In the future, he reminded his commission, there would be upon the directorates a representative of either the National, State, or Municipal governments, and the books, and every transaction, would be open to the public. This would apply to both the owner of the raw material, be it mine, forest, or what not, as well as to the corporation or individual who distributed the marketable product.
It was Dru’s idea that public opinion was to be invoked to aid in the task, and district attorneys and grand juries, throughout the country, were to be admonished to do their duty. If there was a fixity of prices in any commodity or product, or even approximately so, he declared, it would be prima facie evidence of a combination.
In this way, the Administrator thought the evil of pools and trust agreements could be eradicated, and a healthful competition, content with reasonable profits, established. If a single corporation, by its extreme efficiency, or from unusual conditions, should constitute a monopoly so that there was practically no competition, then it would be necessary, he thought, for the Government to fix a price reasonable to all interests involved.
Therefore it was not intended to put a limit on the size or the comprehensiveness of any corporation, further than that it should not stifle competition, except by greater efficiency in production and distribution. If this should happen, then the people and the Government would be protected by publicity, by their representative on the board of directors and by the fixing of prices, if necessary.
It had been shown by the career of one of the greatest industrial combinations that the world has yet known, that there was a limit where size and inefficiency met. The only way that this corporation could maintain its lead was through the devious paths of relentless monopoly.
Dru wanted America to contend for its share of the world’s trade, and to enable it to accomplish this, he favored giving business the widest latitude consistent with protection of the people.
When he assumed control of the Government, one of the many absurdities of the American economic system was the practical inhibition of a merchant marine. While the country was second to none in the value and quantity of production, yet its laws were so framed that it was dependent upon other nations for its transportation by sea; and its carrying trade was in no way commensurate with the dignity of the coast line and with the power and wealth of the Nation.