The Caldwell tribune., 1905-12-09

tion OF the lawnaking bodies; and all that
/ propose is to meet the changed conditions
wealth abdicating the power 1t has always
possessed, not only in this country, but also
in England before and since thiE country be-
came separate Nation. & r'tgN
1t has been q misfortune that the National
laws on this subject have hitherto been of a
negative or pTohibitive rather than an af-
frmatiye kind, and still more that they have
In part sought to prohibit what could not
be effectively prohibited, and have In part
In their prohibitions confounded what should
be allowed and what should not be allowed.
1t Is generally useless to try to prohibit all
restraint on competition, whether this re-
straint be reasonable unreasonable; and
where 1t is not useless 1t is generally hurtful,
Events have shown that 1t Is not possible
adequately to secure the enforcement of any
law of this kind by incessant appeal to the
courts The Department OF Justice has Tor
the last four years devoted more attention
TO the enforcement of the antitrust legisla-
tion than to anything else. Much has been
accomplished; particularly marked has been
the moral effect OF the prosecutions; but
1t Is increasingly evident that there will be
a very insufficient beneficial result in the
way of economic change. The successful
prosecution of one device to evade the law
Immediately develops another device to ac-
complish 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 will prevent any re-
striction of competition from being to the
detriment of the public-as well as such
supervision 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 pitalization-generally it
self the result Of dishonest pronlotion-be-
cause Of the myriad evils it brings in its
train; for such overcapitalization often
means an imitation that invites business
panic; 1t always conceals the true relation Of
the profit earned to the capital actually in
vested, and it creates burden Of interest
payments which is a fertile cause of i'm
proper reduction in or Limitation of wages;
1t damages the small investor, discourages
thrift, and encourages gambling and specu-
lation; while perhaps worst Of all is the
thickness and dishonesty which it implies
for harm to morals Is worse than any pos
sible harm to material interests, and the
debauchery of politics and business by great
dishonest corporations is far worse than any
actual material evil they do the public.
some manner which the wisdom of the
Congress may suggest, proper control over
the big corporations engaged in interstate
commerce-that is, over the great majority
| of the big corporations-it will be impossible
to deal adequately with these evils.
I am well aware of the difficulties of the
legislation that I am suggesting, and of the
need of temperate and cautious action in
securing it. I should emphatically protest
against improperly radical hasty action.
The first thing to do is to deal with the
great corporations engaged in the business
of interstate transportation AS I said in
my message of December last. the imme-
legislation is concerned, is the enactment
into law of 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 inter-
state traffic shall summarily and effec-
lively prevent the imposition of unjust or
unreasonable rates. 1t must include putting
a complete stop to rebates in every shape
and form. This power to regulate rates.
like all similar powers over the business
world, should be exercised with moderation,
| lNoI inn nGtp "a int hut uhN
ist, 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 Commerce Commission or
to reorganized Interstate Commerce Com
mission, such commission should be made
unequivocally administrative. / do not be-
lieve in the Government interfering with
private business more than is necessary. I
do not believe in the Government under
taking any work which can with propriety
be left in private hands. But neither do
believe in the Government f1inching from
overseeing any work when 1t becomes evil
dent that abuses sure to obtain therein
unless there Is governmental supervision. 1t
Is not my province to indicate the exact
terms of the law which should be enacted; |;
but I call the attention of the Congress to
certain existing conditions with which 1t is
desirable to deal. In my judgment the most
important provision which such law should
contain Is that comforting upon some COM
petent administrative body the power to de-
eide. upon the case being brought before it,
whether a given rate prescribed by a rail
road is reasonable and just, and II 1t Is
found to be unreasonable and unjust
then, after full investigation of the
complaint to prescribe the limit of
rate beyond which it shall not be
lawful to go-the maximum reasonable rate,
as 1t Is commonly called-this decision to go
into effect within a reasonable time and to
obtain from thence onward, subject to re-
view by the courts. 1t sometimes happens
at present. not that a rate is too high, but
that favored shipper is given too low
/ rate. In such case the Commission would
have the right to fix this already established
minimum rate the maximum; and it
would need only one or two such decisions
by the Commission to cure railroad COM
4 pantes of the practice OF giving improper
minimum rates. call your attention to the
fact that my proposal Is not to give the
Commission power to initiate originate
, rates generally, but to regulate a rate al
ready hxed or originated by the roads. upon
complaint and after investigation. heavy
penalty should be exacted from any corpora
+ tion which fails to respect order of the
Commission. / regard this power to estab-
lish maximum rate as being essential to
any scheme of real reform in the matter of
railway regulation. The first necessity Is to
secure 1t; and unless 1t is granted to the
/ Commission there Is little use in touching
the subject at all.
Illegal transactions often occur under the
forms of law. 1t has often occurred that
shipper has been told by a traffic officer to
, buy a large quantity of some commodity
and then after 1t has been bought an open
reduction Is made in the rate to take effect
Immediately, the arrangement resulting to
the profit of the one shipper and the one
railroad and to the damage of all their
competitors: for it must not be forgotten
that the big shippers at least as much
to blame as any railroad in the matter OF
rebates The law should make it clear so
that nobody can fail to understand that any
kind of commission paid freight ship
ments, whether in this form or In the form
! or fictitious damages, of concession, a
free pass, reduced passenger rate, or pay
ment of brokerage, Is Illegal 1t is worth
4 while considering whether it would not be
wise to confer the Government the right
of civil action against the beneficiary of a
rebate for at least twice the value of the re-
bate; this would help stop what is really
blackmail. Elevator allowances should be
stopped, for they have now grown to such an
extent that they are demoralizing and are
used as rebates
The best possible regulation of rates would
of course, be that regulation secured by an
honest agreement among the railroads them
selves to carry out the law. Such a general
agreement would for instance. at once put a
stop to the efforts of any one big shipper or
big railroad to discriminate against or Sc
cure advantages over some rival; and such
agreements would make the railroads them
selves agents for enforcing the law. The
power vested in the Government to put a
stop to agreements to the detriment of the
y H. Iz,