The San Francisco call., 1904-06-22

this matter by legislation the laws passed for
that purpose thus far have proved ineffective,
not because Of any lack OF disposition or at
tempt 10 enforce them, but simply because the
laws themselves interpreted by the courts
do not reach the difficulty. II the insufficient
cies of existing laws be remedied by further
legislation it should be done. The fact must be
recognized however, that all Federal legislation
on this subject may fall short of its purpose
because Of inherent obstacles and also because
of the complex character OF our governmental
system which while making Federal authority
supreme within its sphere, has carefully limited
that sphere by metes and bounds that cannot be
At every election the regulation Of trusts had
been the football OF campaign oratory and the
subject Of many insincere declarations.
Our Republican administration has taken up
the subject in q practical sensible way a
business ratner thah pontlcal question: saying
what 1t really meant and doing what lay at
its hand TO be done to accomplish effective
regulation. The principles upon which the
Government proceeded were stated by the
President in his message Of December, 1902.
He said
inviolabllity of property; but this is in wise
inconsistent with the right OF society to regu-
late the exercise of the artificial powers which
It confers upon the owners Of property, under
the name OF corporate franchises in such
way as to prevent the misuse OF these pow
I'VE can do nothing OF good in the way Of
regulating and supervising these corporations
until Ak clearly in our minds that
not attacking the corporations. but endeavoring
70 do away with any evil in them. We not
hostile to them; we are merely determined that
they shall be 50 handled as TO subserve th~
public good. We draw the line against mis-
conduct. not against wealth.
In curbing and regulating the combinations
OF capital which are may become injurious
TO the public we must be careful not to stop the
great enterprises which have leRitimately re-
duced the cost OF production. not to abandon
the place which our country has won in the
leadership OF the international industrial world
not to strike down wealth with the result of
closing factories and mines, of turning ths
vage-worker idle in the streets and leaving
the farmer without market for what he
II believe that monopolies, unjust discrimI-
nations, which prevent or cripple competition.
fraudulent over-capitalization. and other evils
in trust organizations and practices which in
juriously affect interstate trade can be pre-
vented under the power Of the Congress to
regulate commerce with foreign nations and
among the several States through regulations
and requirements operating directly upon such
commerce. the instrumentalities thereof. and
those engaged therein"
CREATES NEW DEPARTMENT.
After long consideration Congress passed
three practical statutes: On the l1th of Febu-
ary 1905 an act to expedite hearings In suits
in enforcement of antitrust act; on the 14th
of February, 1903. the act creating a De-
partment OF Commerce and Labor with Bu-
reau OF Corporations, having authority to Sc
cure systematic Information regarding the
organization and operation of corporations
gagged in interstate commerce; and on the 10th
OF February 1903 an act enlarging the powers
of the Interstate Commerce Commission and of
the courts to deal with secret rebates in trans
portation charges which are the chief means
by which the trusts crush out their smaller
competitors.
The Attorney General has gone on in the
same practical way, not to talk about the
trusts but TO proceed against the trusts by law
for their regulation. In separate suits four
teen of the great railroads of the country have
been restrained by injunction from giving ille-
gal rebates to the favored shippers who by
means of them were driving out the smaller
shippers and monopolizing the grain and meat
put under injunction. The officers of the rail-
roads engaged in the cotton carrying pool, af-
fecting all that great industry of the South
were indicted and have abandoned their COM
bration The Northern Securities Company
which undertook by combining in one owner
and Great Northern railroads to end traffic
competition in the Northwest has been de-
stroyed by a vigorous prosecution expedited
and brought TO a speedy and effective conclu-
sion in the Supreme Court under the act of
February II 1908. The Attorney General saws:
on the combinations in restraint OF trade and
commerce-the railroad injunction suits the
cotton pool cases. the beef trust cases and the
Northern Securities The first relates to
the monopoly produced by secret and prefer
entail rates for railroad transportation: the
second to railroad traffic pooling; the third 10
a combination of independent corporations 10
fix and maintain extortionate prices for meats
and the fourth to corporation organized 70
merge into itself the control of parallel and
competing lines of railroad and 70 eliminate
competition in their rates of transportatfons
UNLAWFUL COMBINATIONS.
The right Of the Interstate Commerce Com
mission to compel the production Of books and
papers has been established by the judgment
of the Supreme Court in suit against the
coal carrying roads. Other suits have been
~ and 0fh Ind - hoxr,