The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1905-12-06
PRESIDENTS MESSAGE

ing with plea for the cooperation o.
all classes in continuing the country'i
prosperity and in correcting existing
e! evils, for square deal" for every
body, the message first takes up the
question of corporations and railroad
rate legislation. The president says:
Corporations.
am In no sense hostile to corpora
Slons. This Is an age of combination
and any effort to prevent all comblna
tion will be not only useless, but in the
end vicious, because of the contempt
for law which the failure to enforce
law inevitably produces. The corpora
ton has come to stay, just as the
trades union has come to stay. Each
can do and has done great good. Each
should be favored so long as 1t does
good. But each should be, sharply
checked where 1t acts against law and
justice.
Experience has shown conclusively
that it is useless to try to get any ade
quate regulation and supervision OF
these great corporations by state &C
tion. Such regulation and supervision
can only be effectively exercised by O
sovereign whose Jurisdiction is cock
tenslve with the field work of the cor
porations-that is, by the national gov
ernment. | believe that this regulation
and supervision can be obtained by the
enactment of law by the congress. II
this proves impossible, 1t will certainly
be necessary ultimately to confer in
fullest form such power upon the ma
tional government by affirmative ac
ment of the constitution.
The laws of the congress and of the
several states hitherto, as passed upon
by the courts, have resulted more often
In showing that the states have nc
power In the matter than that the ma
tional government has power; so that
there at present exists a very unfortu
nate condition of things, under which
these great corporations doing an in
terstate business occupy the position OF
subjects without sovereign, neither
any state government nor the nationa
government having effective contro
over them. Our steady aim should bt
by legislation, cautiously and carefully
undertaken, but resolutely persevered
in, to assert the sovereignty Of the ma
tlonal government by affirmative ac
ton.
This Is only in form an innovation
In substance It is merely n restoration
for from the earliest time such regula
tion of Industrial activities has beer
recognized in the action of the law
making bodies, and all that propose
Is to meet the changed conditions in
such manner as will prevent the com
monwealth abdicating the power it has
always possessed, not only in this coun
try, but also in England before and
since this country became a separate
nation.
Railroad Rate Legislation.
AS | said in my message Of Dec.
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 regu
lation of the rates charged by the rail
roads of the country engaged in inter
state traffic as shall summarily and eff
fectively prevent the imposition of un
Just or unreasonable rates. 1t mus
include putting complete stop to re
bates in every shape 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 1t should exist
so that it can be effectively exercised
when the need arises.
In my Judgment, the most important
provision which such law should con
tain is that comforting upon some com
petent administrative body the power
to decide upon the case being brought
before 1t whether a given rate pre-
scribed by railroad is reasonable and
Just, and If It is found to be unreason
able and unjust then, after full investi,
cation 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 call
ed-this decision to go into effect with
In reasonable time and to obtain
from thence onward, subject to review
by the courts.
1t sometimes happens at present, not
that n rate is too high, but that a ia.
vored shipper is given too low a rate
In such case the commission would
have the right to fix this already estab'
and 1t would need only one or two such
decisions by the commission to cure
railroad companies of the practice OF
giving improper minimum rates. l call
your attention to the fact that my pro-
poSal Is not to give the commission
power to initiate or originate rates gen.
orally, but to regulate rate already
fixed or originated by the roads upon
complaint and after Investigation. A
heavy penalty should be exacted from
any corporation which fails to respect
an order of the commission. l regard
this power to establish maximum
rate as being essential to any scheme
of real reform in the matter of railway
regulation. ..H
1t is worth while considering whether
1t would not be wise to confer on the
government the right of civil action
against the beneficiary of rebate for
at least twice the value of the rebate.
This would help stop what is really
blaclmail. Elevator allowances should
be stopped, for they have now grown
to such an extent that they are demor-
oIi1ino ond ora uca1 nc rnhntps