ABSTRACT
High profits in industry fulfil a definite function and have definite results; they attract new producers, and thus furnish the “natural means by which the community can prevent monopolies not State-granted from being excessively exploite’d.” 1 Diminished profits, resulting from such competition, frequently lead Kartells to use co-operative methods in order to crush their rivals; thus a strong organisation, instead of serving the community by adjusting supply, may elect to crush its competitors and exploit the market. Competition which does not take place through the consumer, 2 but which blocks the channels of trade to the less favoured producer, may be generally termed unfair; the same may be said of competition in which one competitor voluntarily sustains an injury in the hope of recouping himself when the same injury has proved fatal to his rival.
