Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-05

Kept upon an honest basis no. other ouestio,
Oh internal economy with which the, Con-
sress mas the power 10 deal begins 10 an
pfoaeh IN Importance the matter. Of en-
ueaNotihS 10 secure proper Industrial con-
uit'ohs under which the Northumberland
especially the great orporations-dong an
interstate business are to act The makers
VI our national Constitution provided espe-
ciaiy that the REGULATE Jon of interstate COM
me- &C SHOULD come within the sphere Of the
general government The arguments in
FAVOR OF their taking this stand were even
then overwhelming. But they are far
stronger today, in view of the euor,no,,s de-
'eiopment of great business agencies
usually corporate in form Experience has
SHOWN conelusively that it is useless to try
10 get any adequate regulation and ,,nper
VISION OF these great corporations by state
action Such regulation and supervision
0'n oiiiy De effectively exercised by Z, SOW
whose jurisdiction is coextens.ve
Win the Held of work of the corpora lions
-, o9 me national government be-
iieVe that this regulation and super,tsi,,
can De obtained by the enactment n, l.,
W me congress. If this proves impossih,e
II VIII certainly be necessarv ,,,i.,.,
'oilef IN fullest form such power uno, tho
national government by a ,,r,,,.r
ment OF the Constitution II ,vo,,r5 -,
~ De unwise to endeavor TO secure .s,,,t -.
amendment until it is certaip tho, r.
suit cannot be obtained under tho Co...
'oh as II now is. The laws of the..co,,,,,,,-
ana OF the several states hitherto as 49,,
upon Dy the courts, have ra.,,,ra, -,
oAteh III showing that the sraras 49,
po"ef IL the Matter than tha- tn. ,.,,,,
eo'eiHHleht mas power; SO mar ,ba, -
present exists very untorJunat. c,.,,,,
' Vi thlhss, unQer Wn!un tn.sa Or,
Noipoiato uoIng an Interstate IN, ~.
oeNuPs the poSltIon uI suotecrs u,,rn,,,,- ,
sovereign, neither any STATE gn,s,,, -,
ioi me national government havtn,, 49,.
avg control over them. Our sf.a.,, a.,
S4ouIo ne py legislation cantonese an,
e"ieieis uheeftdken, OUT -reso.ulev
se'eieu H. 10 assert me Sovereignty ar tn,
'0iai government Dy affirmative. acifo,
. only IN form an Innovation n,
SUBSTANCE IL is mercy a restoratton. -
u oiii me earliest time sucn reputation a,
4"t ACTIVITIES mas been recugn zed in
-oii VI the Ia"-inakIHg ouuies. and
't 'ii''e propose is 10 meet the changed
-0Ha III sucn manner as VIA pr.yenf
''i0 commonwealth aboicating the bower II
o "i"a3s possessed, not onIy IN ms co,n
Ou' aiso III England before ana since
'ii!S country became separate nation.
mas peeh a misfortune that the ma
tiohal laws on TINS SUBJECT have hithetta
oeeh oI negative or prohibitiye ratber
imam an ahnrmative kind, and SIN more
tAoA mat they nave in part sought to pro-
hipit what could not be effectively pron a.
i'ed' ana nave In part in their prohibitions
cohIouHdea what should be allowed aud
what should not be allowed. 1t is generally
useless TO Try to prohibit all restraint ON
competition, whether this restraint be reas
enable or unreasonable: and where r. ss ,,a.
useless it is generally hurtful Events have
shown that 1t is not possible adequately 10
secure the enforcement OF any law of rhis
kind by incessant appeal 10 the courts g,ha
Department of Justice has for the last fopr
years devoted more attention To the en-
forcement of the antitrust legislation tina,
to anything else. Much has been aceorn-
piished; particularly marked has been The
moral effect of the prosecutions; but It is
increasingly evident that there will be a
very insufficient beneficial result In the wav
OF economic change. The successful prose-
cution of one device to evade the law irn!ne-
diately develops another device to accom-
plish the same purpose. What is needed is
not sweeping prohibition of every arrange
ment. good or bad, which may tend to re-
strict competition, but such adequate SUPER
vision and regulation as will prevent any
restriction of competition from being to ths
detriment of the public-as well as such SUI
pervision and regulation will prevent
other abuses in no way connected with re-
striction of competition. OF these abuses
perhaps the chief. although by no means
the only one, is Observation-Disclosures
ally itself the result of dishonest promotion
because of the myriad evils it brings In
fits train; for such capitalization often
means an Imitation that invites business
panic; It always conceals the true relation
of the profit earned to the capital actually
invested. and 1t creates burden Of interest
payments which is a fertile cause Of im-
proper reduction In or Limitation of wages:
it damages the small investor. discourages
thrift and encourages gambling and specu-
letion: while perhaps worst OF all Is ths