Government Controls Of Competition In The Mineral Industries

THE PROBLEMS AND POSSIBLE SOLUTIONS Toward the end of the 19th century, American industry began a drastic reorganization. The many, small, often-regional firms were supplanted by large national corporations-often produced by mergers among the existing firms. Giant companies appeared throughout American industry and many of them were engaged in the mineral industries.a The largest combines, by far, to emerge during the period were United States Steel and Standard Oil. Long before the restructuring had run its course, widespread concern arose over the process of concentration. Efforts were made to control, if not stop, the transformation. The concern produced the Sherman Antitrust Act of 1890 and the first of many federal regulatory agencies-the Interstate Commerce Commission (see Refs. 24, 31, 42). The basic objectives of these policies remain unclear to this day. The crucial issue is whether the goal is primarily to insure development of a more competitive economy or to preserve a social structure leaving more scope for small businesses. Complications arise from difficulties in agreeing upon the meaning of these terms. Studies of the early years of the antitrust movement suggest that it involved no particular concern over the mineral industries. Objections were directed at big companies in general. To be sure, the conservation movement arose in roughly the same period and did stress the evils of monopoly control of minerals. However, direct, continuing influence of conservation policy on antitrust is not apparent. Many of the most important antitrust cases, nevertheless, involved minerals. This, of course, may be sheer coincidence; the choice of cases has never followed any obvious pattern. Certainly, no simple hypothesis can explain the interest consistently. Once it may have been true that mineral industries were more likely than other sectors to be dominated by a few large companies. Yet, often sharp reversals of such tendencies -e.g., in oil and aluminum-have not removed antitrust interest. The importance of minerals to the economy cannot satisfactorily rationalize antitrust interest. The equally