Yet another meddling fool who cannot mind his own business. If he wants to pay his interns, more power to him. If another doesn't want to, and such is perceived as a problem by the intern labor pool, he won't get any applicants.
Let the market decide.
Some of the most sought out interships by culinary students paid absolutely nothing, you worked like a rented mule, and you may get told to leave the first day if you screwed up.
It was harsh, but it was real. If you could last through that, you started gaining your rep, and good job offers flowed. I left culinary school and moved directly into a kitchen manager position, based on referals from those I had interned for.
/johnny