Part 49 (1/2)

5. The nature of monopoly. (Ely, _Outlines of Economics,_ chapter xii; Seager, _Principles of Economics,_ chapter xxiii.)

6. Causes of trust formation. (Van Hise, _Concentration and Control,_ pages 21-25.)

7. Purposes of trust formation. (Van Hise, _Concentration and Control,_ pages 25-31.)

8. Forms of industrial combination. (Van Hise, _Concentration and Control,_ pages 60-72.)

9. Text of the Sherman anti-trust act. (_Ripley, Trusts, Pools and Corporations,_ pages 484-485; Durand, _The Trust Problem,_ appendix i.)

10. Early Supreme Court decisions relative to the Sherman act.

(Ripley, _Trusts, Pools and Corporations,_ pages 506-549.)

11. The Sherman act in actual operation. (Hamilton, _Current Economic Problems,_ pages 433-441.)

12. The ”rule of reason.” (Ripley, _Trusts, Pools and Corporations,_ pages 606-702.)

13. Difficulty of regulating trusts. (Durand, _The Trust Problem,_ chapter in.)

14. Text of the Federal Trade Commission act. (Durand, The _Trust Problem,_ appendix in.)

15. Relation of the Federal Trade Commission to the courts. (_Annals,_ vol. lxiii, pages 24-36.)

16. Relation of the Federal Trade Commission to our foreign trade.

(_Annals,_ vol. lxiii, pages 67-68.)

17. Alleged advantages of trusts. (Durand, The _Trust Problem,_ chapter iv; Van Hise, _Concentration and Control,_ pages 8-21.)

18 Trust regulation in foreign countries. (Van Hise, _Concentration and Control_, chapter iv.)

19. The history of some one trust, as, for example, the American Sugar Refining Company, the United States Steel Corporation, the American Tobacco Company, or the International Harvester Company. (Consult any available literature.)

FOR CLa.s.sROOM DISCUSSION

20. What is a reasonable as opposed to an unreasonable restraint of trade?

21. How is it possible to tell when combination has resulted in monopoly?

22. To what extent is the mere size of an industrial organization an indication of monopoly?

23. Does monopoly always result in a higher price being asked for the monopolized article?

CHAPTER XXVIII

PUBLIC INTEREST IN BUSINESS: OWNERs.h.i.+P

337. BASIS OF NATURAL MONOPOLY.--The most important examples of _natural_ monopoly are found in those industries which are known as public utilities. Public utilities include gas and electric light works, waterworks, telephone and telegraph plants, and electric and steam railways.

These industries are by their very nature unsuited to the compet.i.tive system. This is chiefly because they operate under the principle of decreasing cost, that is to say, the greater the volume of business handled by a single plant, the less the cost of production per unit.