The rule which governs the fixing of rates on this side of the business dealings of a monopolistic
coalition ie similar to that which guides its transactions in the matter of sales. Prices and rates, aa, e.g., for materials and labor, are not depressed to the lowest possible point, but to the lowest practicable point, — to the point compatible with the largest net profits. This may or may not be a point below the rates necessary under a regime of competitive buying. It may be added that only in rare cases does a coalition attain so strong a position in respect of its purchases (of materials or services) as to lift this side of its business entirelyabove the reach of competition.'
Wherever this expedient of coalition has been -found practicable, the chronic depression of recent ; times and the confusion and uncertainty which I goes with a depressed competitive business situaItion have been obviated, The great coalitions do . ' not suffer acutely from the ills of depression, except in cases where their industrial processes are to a peculiar degree in the position of intermediaries within the range of the competitive industries, as is the case, e.g., with most railroads. But