Omaha daily bee., 1902-04-27
DOES REGULATION REgULATr,

the natural product Of the Industrial
revolution that has followed the APP
pliance Of labor saving machinery in all
branches of industry and the c%oncentra-
ton of capital for the most economic
and efficient employment of machinery
in the production Of manufactured com
modities. The assumption Of this class
Is that the trusts have come to stay
and their power for evil and mischief
must be curbed and checked by public
ity, supervision and regulation.
And lastly, we have the advocates of
the let-alone policy, who contend that
all of the ills of the body polite will
heal themselves in the long run through
the operation of the natural laws of
supply and demand.
The two extremes-those who advo-
cate the destruction Of the trusts, and
those who are opposed to all interior
ence with the t~rusts-insist that regula.
ton does not regulate, and, therefore, all
legislation short of humiliation, or un-
restricted combination will prove abor-
tive.
Yet the most conclusive proof that reg
ulation does regulate may be found on
every highway of the worlds progress.
American cities regulate the rates
charged for public carriage hire, and
drayage and express charges. They
regulate the speed at which vehicles
may traverse the public thoroughfares.
They regulate the price of gas and cleo
trio lights supplied through private cor
pOrations. They regulate pawn shops,
auctioneers and various other occupa-
tons. They regulate each individual
house owner in %depositing and dispos-
ing of garbage. State laws have reg
ulated the loanlng and collection Of
money and the general conduct Of
banking concerns. The state laws pro-
vide for the inspection of Illuminating
oils, dairy products, the storage and
marketing of grain, and these laws have
effectively checked abuses in most
instances.
The most striking instance of the
practical effect of regulation may be
found in the restriction of railway
rates. The Burlington railway for
many years owned and controlled two
parallel railroads running down the
Missouri valley from Omaha and COun-
Gil Bluffs to st. Joseph. One Of these
roads was on the west bank of the Mis-
souri, in Nebraska, and the other on the
east bank of the Missouri in the state
of Iowa. Ten or twelve years ago the
local passenger rate on the Nebraska
road was five cents per mile, while the
rate on the opposite side of the river
was three cents per mile. This marked
divergence of passenger rates was kept
up until the Nebraska legislature
enacted a law restricting the rate over
any railroad within the state to three
cents per mile. Ever since that law
went into effect the Burlington line in
Nebraska has charged the same rate
as that previously charged on the
Iowa line. Did not regulation regulate
in that instance. Had the destruction
lists policy been pursued Nebraska
would have been compelled to confs-
cate and operate the railroads. Had
the let-alone policy prevailed the five
cent per mile rate might still be in
force.
Twenty-Five years ago the legal inter-
est rate in Nebraska was twelve per
cent, but when the legislature reduced
it to ten per cent money lenders cut
down gracefully and stopped charging
twelve per cent. While usurious rates
may have been charged from time to
time by private money lenders and
some INSCRIPTIONS bankers, the reputa-
BILE money lenders. which means the
great majority of bankers in the state,
have obeyed the law.
The regulation and supervision of
national banks has long since passed
the experimental stage. In fact, 1t has
been the safety valve of our national
banking system. No rational person
would contend that national banks must
be destroyed because some evils have
BTONn Out VI the = SlSlh, hOl NOuiN any
advocate of the let.alone policy dare
contend that it would be safe to abOl-
ish all restrictions and safeguards for
American banking institutions.
What is true of railroads and banks
applies with greater force to trusts. The
destruction of the trusts would simply
mean industrial anarchy and CONNER
cial chaos. 1t would precipitate the
closing down of hundreds of mills and
factories and throw out Of employment
hundreds of thousands, II not several
millions of wage workers. 1t would be
about as rational as would be the de-
struction Of all labor saving machines
and the pulling up of all railroad
tracks. The rational and safe course in
dealing with the trusts is to make them
harmless by restricting their powers
and subjecting them to close supervis-
ion and governmental control.
While clawing the air and bowling
themselves hOarse about the trusts,
democratic organs and leaders exhibit
keen relish oyer the campaign inaugur-
ated by President Roosevelt against the
trusts from which the democrats hope
TO reap substantial benefit. The lead