The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-12-07
6bs NebraskA Independent

restriction of competition. OF these abuses, per-
haps the chief, although by no means the only
one, Is overcapitalizatiOn generally itself the re-
suit of dishonest promotion-because of ttc
myriad evils it brings in it's train; for such over
capitalization often means an imitation that in
vites business panic 1t always &C lceals the true
relation of the profit earned t the capital actu-
ally invested and it creates a burden of interest
payments which is a fertile cause OF improper
reduction in or limitation of wages; it damages
the small investor, discourages thrift, encour-
ages gambling a1d speculation; while perhaps
worst of all is the thickness and dishonesty which
1t implies-fOr harm y morals Is worse than any
possible harm to material interest, and the de-
bauchery of politics and business by great dis
honest corporations Is far worse than iny actual
material evil they do the public Until the ma
tiOnal government obtains, in some manner which
the wisdom of the congress lay suggest, proper
control over the big corporations engaged in in
terstate commerce-that is, over the great ma
ority of the big corporations-it will be impossible
to deal adequately with these evils
II am well aware Of the difficulties of the
legislation that I am suggesting, and Of the need
Of temperate and caution action in securing
it. / should emphatically protest against improp-
erly radical or hasty action TIL first thing
to do Is to deal with the great corporations en-
gagged in the business of interstate transportation.
AS I said in my message of December 6, last,
the immediate and most pressing need SO far
as legislation is concerned, Is the enactment into
law of some scheme to secure to the agents of
the government such supervision and regulation
Of the rates charged by the railroads of the
country engaged in interstate traffic as shall
suInmary and effectively prevent the imposition
of unjust or unreasonable rates. 1t must include
putting complete stop to rebates in every s..ape
and FORM This power to regulate rates, like all
similar powers over the business world, should
be exercised with moderation, caution, and self
restraint; but it should exist, SO that it can be
effectively exercised when the need arises.
THE first consideration to be kept in mind
is that the power should be affirmative and should
be given to some administrative body created by
the congress. II given to the present interstate
commission or to reOrganized interstate COM
merce commission, such commission should be
made unequivocally administrative do not be-
lieve in the government interfering with private
business more than Is necessary. / do not be-
lieve In the government undertaking any work
which with prOpriety be left in private hands.
But neither do believe in the government finch
ing from overseeing any work when i becomes
evident that abuses are sure to obtain therein un-
less there is governmental supervision 1t is
not my province to indicate the exact terms Of
the law which should be enacted; but call the
attention of the congress to certain existing con-
ditons with which it is desirable to DEAL In my
judgment the most important provision which
such law should contain is that comforting upon
some competent administrative body the power to
decide, upon the case being brought before it,
whether a given rate prescribed by railroad is
reasonable and just, and If it is found TO be un-
reasonable and unjust, then, after full investga-
ton of the complaint to prescribe the limit of rate
beyond which it shall not be lawful to go-the
maximum reasonable rate, as it is commonly
called--this decision to go into effect within
reasonable time and to obtain from thence on
ward. subject to review by the courts 1t some
times happens at present, not that a rate Is too
high. but that favored shipper is given too low
a rate In such case the commission would have
the right to fix the already established minimum
rate as the maximum and 1t would need only one
or two such decisions by the commission cure
railroad companies of the practice of giving i'm
proper minimum rates. call your attention TO
the fact that my proposal ic not to give the
commission power to initiate originate rates
generally. but to regulate rate already fixed
or originated by the roads. upon complaint and
after investigation. A heavy penalty should be
spect an order Of the commission regard this
power to establish maximum rate as being es-
sential TO any scheme of real reform In the mat
ter of railway regulation The first necessity Is