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Editorial
February 3, 1949
The Potters Herald
East Liverpool, Columbiana County, Ohio
What is this article about?
The editorial urges Congress to strengthen anti-trust laws due to a loophole allowing corporate mergers that create monopolies. It notes over 2,450 companies absorbed since 1940 and argues that competition controls prices, warning of price gouging from monopolies, affecting trade unionists and consumers.
Clipping
OCR Quality
98%
Excellent
Full Text
Monopoly
The Federal Trade Commission has once again appealed to Congress to strengthen the anti-trust laws.
As we have pointed out before, the anti-trust laws are now virtually meaningless because of one gaping loophole. Although the law forbids rival industries to get together illegally to work out pricing and other agreements to avoid competition, there is nothing to prevent a large concern from buying outright its chief competitors, and thus establishing a virtual monopoly outside of effective government control.
This is exactly what has happened in recent years. The F.T.C. says that more than 2,450 independent manufacturing and mining companies have been absorbed since 1940 as a result of the rising number of corporate mergers.
What interest do trade unionists have in this matter? Simply this: Competition is in the long run the only effective means of keeping prices under control. Unbridled monopoly invariably leads to price gouging—and that hurts all of us.
The Federal Trade Commission has once again appealed to Congress to strengthen the anti-trust laws.
As we have pointed out before, the anti-trust laws are now virtually meaningless because of one gaping loophole. Although the law forbids rival industries to get together illegally to work out pricing and other agreements to avoid competition, there is nothing to prevent a large concern from buying outright its chief competitors, and thus establishing a virtual monopoly outside of effective government control.
This is exactly what has happened in recent years. The F.T.C. says that more than 2,450 independent manufacturing and mining companies have been absorbed since 1940 as a result of the rising number of corporate mergers.
What interest do trade unionists have in this matter? Simply this: Competition is in the long run the only effective means of keeping prices under control. Unbridled monopoly invariably leads to price gouging—and that hurts all of us.
What sub-type of article is it?
Economic Policy
Trade Or Commerce
What keywords are associated?
Antitrust Laws
Corporate Mergers
Monopoly
Price Control
Federal Trade Commission
What entities or persons were involved?
Federal Trade Commission
Congress
Trade Unionists
Editorial Details
Primary Topic
Strengthening Anti Trust Laws Against Corporate Mergers
Stance / Tone
Critical Of Monopolies And Supportive Of Stronger Regulations
Key Figures
Federal Trade Commission
Congress
Trade Unionists
Key Arguments
Anti Trust Laws Are Meaningless Due To Loophole Allowing Mergers
Law Forbids Illegal Agreements But Not Buying Competitors
Over 2,450 Companies Absorbed Since 1940 Via Mergers
Competition Controls Prices; Monopoly Leads To Gouging