CORPORATE CONCENTRATION AND PUBLIC POLICY
By Harry L. Purdy, Mar-tin L. Lindahl and William A. Carter '2O.New York, Prentice-Hall, Inc., 1942, 650 pp.$4.25.
The progressive growth of corporate concentration and monopoly power in the United States constitutes one of the major public problems of this generation. It is imperative that a well delineated national public policy on this question be formulated and be vigorously pursued. The broad alternatives appear to be quite clear. First, a strong effort may be exerted to preserve and reconstruct competitive individualism. This policy requires the eradication of monopoly from the competitive fields of business so that prices determined in a relatively free market may be relied upon in large part to guide economic activity. Under this program there is likewise the promise of preserv- ing our traditional political individualism and democracy. Secondly, at the other extreme some form of collectivism may be substituted for competitive individualism on the assumption that the latter system has outlived its usefulness. Lastly, the strong drift in this country toward increasing monopoly power may be permitted and even encouraged. This policy sounds the death knell of individualism, and points in the direction of a fascist political state.
Professors Purdy, Lindahl, and Carter have undertaken in this book to assemble and to interpret the background facts bearing on these large issues. They have confined their analysis to monopoly and monopolistic competition in industry, and have made no effort to cover the whole field of social control. It can be said without reservation that they have succeeded admirably in accomplishing the task which they undertook. The work represents a distinctive contribution to the literature of the subject.
The book is divided into four parts. Part I, The Modern Corporation, contains seven chapters which trace the development of the modern corporation, and the concentration of corporate power by such devices as minority control, management control, and the holding company.
Part 11, Industrial Monopoly, consists of five chapters which present case histories of various industries characterized by monopoly; it also develops the economics of monopoly. Part 111, Public Regulation of Monopoly and Competitive Practices (seven chapters), traces the historical record of public regulation from the early restrictions of the common law to the application of existing legislation. Part IV, Oligopoly and Industrial Cooperation (seven chapters), presents case histories of certain industries in which monopolistic competition has developed; it also deals analytically with the economics of oligopoly. In addition, there are two important concluding chapters which embody the views of the authors with respect to possible future public policies. Incidentally, it is their considered opinion that public policy should take the direction of the first broad alternative indicated above: that every effort should be marshalled to preserve and revitalize competitive individualism.
The reader is impressed by the fine grasp of the subject and the broad background of the authors. He is also impressed by the careful integration and logical organization of material, a distinctive feature of which is the separate treatment of monopolistic competition. Another outstanding feature is the framework of sound economic analysis around which the facts of the subject are assembled. While the style of writing in general is excellent and contributes to the effectiveness of the presentation, it suffers occasionally from being prosaic or legalistic. Moreover, the readability of the book is obstructed somewhat by the profusion of references to court decisions. Perhaps such references might be separated from other footnotes by means of an appendix at the end. Two other minor shortcomings also came to the attention of the reviewer. There would seem to be too little space and emphasis given to the trade association movement; and there is perhaps too great detail in the description of some of the case histories.
But one has to lean toward the hypercritical side to find anything of substance wrong. The book is definitely a distinguished piece of work, and as such it deserves a large audience not only as a college text, but also among business men, public officials, and intelligent lay readers. Any one o£ these groups should find its careful perusal a most stimulating and informative experience.
Challenge to Youth—Biography of RobertHenry Michelet, a volume of 110 pages by David F. Chapman, has just been published. The printing of this volume was made possible through the generosity of a patron of Mercersburg Academy of which school Michelet was a graduate. This is the story of Bob Michelet '34, well known Dartmouth athlete, scholar, Senior Fellow, Rhodes Scholar elect, who died of pneumonia toward the end of his senior year. Michelet is treated most sympathetically by the author. The volume is well illustrated. Forty-four of the pages relate to Michelet's life at Dartmouth. Those who knew him then and others who have heard of his marvelous spirit and character will want to read this tribute.
