Weekly Arizona journal-miner., 1905-12-13

I So long as the finances of the na- tion are kept upon an honest basis no other question of internal economy with which the congress has the power to deal begins to approach in | importance the matter of endeavoring to secure proper industrial conditions under which the individuals-and es- pecially the great corporations-doing an interstate business are to act. The makers of our national constitution provided especially that the regula- tion of interstate commerce 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 enor- nous development of great agencies, usually corporate in form. Expedl- ence has shown conclusively that it is useless to try to get any adequate regu- lation and supervision of these great corporations by state action. Such regulation and supervision can only be effectively exercised by a sovereign whose jurisdiction is coextensive with the field of work if the corporations l lS, believe that this regulation and super vision can be obtained by the enact ment of law by the congress. If this proves impossible, it will certainly be necessary ultimately to confer in full est form such power upon the national government by a proper amendment Of the constitution. It would obviously be unwise to endeavor to secure such an amendment until it is certain that the result can not be obtained under the constitution as it now IS. The laws of congress and the several states hitherto, as passed upon by the courts, have resulted more often in showing that the states have no power in the matter than that the national govern ment has power; so that there at pres ent exists a very unfortunate condl- tion of things, under which these great corporations doing an interstate business occupy the position of subjects without a sovereign, neither any state government nor the national gov ernment having control over them.
 It is generally useless to try to pro- hibit all restraint on competition, whether this restraint be reasonable or unreasonable; and where it is not use- less it is generally hurtful. Events have shown that it is not possible ade- auately to secure the enforcement or any law of this kind by lncessant ap- peal to the courts. The department or justice has for the last four years de- voted more attention to the enforce ment of the antitrust legislation than to anything else. Much has been ac- complished; particularly marked has
 been the moral effect of the proseeu'
 tions: but it is increasingly evident that there will be a very insufficient
 beneficial result in the way of econ
 omic change. The successful proseeu
 tion of one device to evade the law
 immediately develops another devlct to accomplish the same purpose. Wha'
 is needed is not sweeping prohibition of every arrangement, good or bad . which may tend to restrict competition , but such adequate supervision an'
 regulation as will prevent any re striction of competition from being tt ? the detriment of the public-as well al I such supervision and regulation as VII 9 prevent other abuses in no way con . nected with restriction of competition , Of these abuses, perhaps the chief, al
 though by no means the only one, l
 overcapitalization- generally itself tn
 result of dishonest promotion-becaus ; of the myriad of evils it brings Tn 1t ' train; for such overcapitalization oftel U means an imitation that invites busi ', ness panic; it always coneeals tn . true relation of the profit earned to tn !. capital actually invested, and 1t ere v ates burden of interest payment . which is a fertile cause of imprOpe , reduction in or limitation of wages II discourages thrift, and encourages gan v bling and speculation; while perhap
 worst of all is the trickiness and dl'
 honesty which it implies-fOr harm 70 morals is worse than any possible harl 'i to material interests, and the debaucl 0 cry of politics and business by grea
 dishonest corporations is far wors n' than any actual material evil they q r the public. Until the national goverl
 ment obtains, in some manner whlc Il the wisdom of the congress may SUI - gest, proper control over the big co 1 porations engaged in interstate con a merce-that is, over the great m 'u jority of the big eOrporations-it wi 4I be impossible to deal adequately vii 'a these evils.
 re As l said in my message of D ie, cember last, the immediate and mo he pressing need, so far as legislation ch concerned, IS the enactment into la d. of some scheme to secure to the agen it of the government such supervisi' be and regulation of the rates charged st the railroads of the country engag
 in interstate traffic as shall summari