The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-04
ROOSEVELT ON TRUSTS
THE GOVERNORS MESSAGE To THE
NEW YORK LEGISLATIVE.
He Points Out Some of the Abuses
That Arise from Combinations
and Suggests Remedies.

In the Senate Timothy L. Ellsworth, of Nj
agara county, was elected president pro
tenn, and in the House Frederick Nixon, Of
Chautauqua county, was reelected speak
er. After the organization of the two
houses had been completed the annual mes
sage Of Governor Theodore Roosevelt was
read. Part OF his message was devoted TO
modern Industrial conditions and trusts.
This problem has hundred phases.
The relation OF the capitalist and the wage
worker makes one; the proper attitude or
the State towards extreme poverty anoth-
er; the proper attitude OF the State towards
the questions Of the ownership and running
of so-called public utilities third. But
among all these phases the one which ut
this time has the greatest prominence is
the question OF what are commonly termed
trusts meaning by the name those vast
combinations OF capital, usually fiourishing
by virtue OF some monopolistc element.
which have become startlingly common
a feature in the industrial revolution which
has progressed SO rapidly during the recent
years. Every new feature or this Industrial
revolution produces hardship because In It's
later stages 1t has been literally a revolu-
tion instead of an evolution. The rev IN
ventions and discoveries and the new meth
cd of taking advantage OF business faclll-
ties afforded by the extraordinary deNel-
opment of our material civilization have
caused the changes to proceed with such
marvellous rapidity that at each stage
some body of workers finds itself unable 10
accommodate itself to the new conditions
with sufficient speed to escape hardship.
In the end the accommodation of the class
takes place at times too late Tor the we'll
being CT many individuals: In some cases,
while recognizing the evil II Is impossible,
without present knowledge, TO discover any
remedy. In others remedy can be APP
piled, but as yet only at cost that would
make IL worse than the trouble itself. In
yet others it is possible, by acting with
wisdom. GOODNESS and fearlessneSs, 10 apply
a remedy which will wholly, or in great
part. remove the evil while leaving the
good behind.
1.-The machinery of modern business is so
vast and complicated that great caution
must be exercised i'm introducing radical
changes for fear the unforeseen effects may
take the shape of widespread disaster
Moreover much that is complained about
is not really the abuse so much as the In
evitable development Of our modern INDUS
trial life. Very many of the antitrust
laws which have made their appearance on
the statute books of recent years have been
almost or absolutely ineffective because
they have blinked at the all-fmportant TACT
that much of what they thought 10 DO
away with was incidental to modern indus
trial conditions, and could not be eliml-
mated unless we were willing to turn back
the wheels of modern progress by also
eliminating the forces which had brought
about these industrial conditions. Not only
trusts, but the immense Importance or ma
chinery, the congestion of city life, the ca
pacity to make large fortunes by specula-
tive enterprises, and many other features
of modern existence 1t is believed thorough
~ changed by doing away with steam ana
electricity; but the most ardent denounccr
of trusts would hesitate to advocate so
drastic q remedy. What remains for Us TO
do as practical men is to look the condi-
tons suuarely in the face and not TO per-
NIT the emotional side or the question,
which has its proper place, TO blind us TO
the fact that there are other sides. We
must set about finding out what the real
abuses are, with their causes, and 10 what
extent remedies can be applied.
ITO say that the present system OF hap
hazard license and lack of supervision
and regulation is the best possible. Is
absurd. The men who endeavor to pre-
vent the remedying of real abuses not only
show callous disregard for the suffering
of others, but also weaken others who are
anxious to prevent the adoption of indis-
eliminate would-be remedies, which would
subvert our whole industrial fabric. The
chicanery and the dishonest, even though
not technically illegal, methods through
which some great fortunes have been made
are scandals to our civilization. The man
who by swindling or wrongdoing acquires
great wealth for himself at the expense
of his fellow, stands as low morally as
an predatory medieval nobleman. and Is
a more dangerous member of society. Any
law and any method of constituting the
law which will enable the community TO
punish him, either by taking away his
wealth or by Imprisonment, should be well
coined. OF course such laws are even more
needed I'm dealing with great corporations
than with individuals. They are needed
quite as much for the sake of honest cor
poration for the sake of the public.
The corporation that manages its affairs
honestly has right to demand protection
against the dishonest corporation. The first
essential is knowledge OF the facts, pub
licity. Much can be done at once by amend
ment OF the corporation laws so as TO
provide for such publicity as will not work
injustice as between business rivals.
1.-THE chief abuses alleged to arise from
trusts are probably the following: Mis-
representation or concealrnent regarding
material facts connected with the organi-
cation Of an enterprise; the evils connected
with interruptions promotions; overcapi-
talization; unfair competition resulting in
the crushing out of competitors who them
selves do not act improperly; raising of
prices above fair competitive rates; the
welding of increased power over the wage
earners. Some of these evils could be par
TALLY remed1ed by q modification of our
corporation laws; here We can safely go
along the lines from conservative New
England States, and probably not little
further. Such laws will themselves provide
the needed publicity and the needed cir
cumstantiality Of statement. We should
know authoritatively whether stock repre-
sents actual value OF plants. or whether 1t
represents brands or good Will, and If not,
what ii does represent, If anything. 1t is
desirable to know how much was actually
bought, how much was issued free, and to
whom, and IL possible for what reason.
This would enable to see just what the
public have right to expect in the way
OF service and taxation.
Where a trust becomes n monopoly the
State has an immediate right to interfere.
Care should be taken not TO stihe enter
prise or disclose any facts of business
that are essentially private, but the State,
for the protection of the public, should
exercise the right 20 inspect, to examine
thoroughly, all the workings of great cor
porations, just as Is now done with banks.
and wherever the interests of the public
demand il, it should publish the result of
its examination. Then, If there are inordi-
nate profits, competition public senti-
ment will give the public the benefit i'm
lowered prices. and If not, the power OF
taxation remains
Governor Roosevelt also devotes some
space TO a review of labor legislation I'm
New York, and commends the work of
the Board OF Mediation and Arbitration I'm
dealing with strikes during the year past.
He promises his approval OF drug clerks
bill 10 remedy hardships to which men in
that occupation are subjected.
The Governor recommends the repeal OF
the Horton boxing law. on the ground that
when any sport Is carried on primarily
for money-that is, as a business-it is i'm
danger Of losing much that is valuable and
OF acquiring some undesirable characters
ties. In the case of prize-fighting not only
do all the objections which apply TO the
abuse of other professional sports apply I'm
aggravated FORM but, I'm addition the exhi-
bition has a very demoralizing and brutal