The Republican. [volume] (Oakland, Md.) 1877-current, 1905-12-07
PRESIDENT MESSAGE

tlS Win pea Tor luC cooperation OF
all classes in continuing the county 5
prosperity and in correcting existing
evils fer q square deal" for every
body, the message first takes up the
question of corporations ana railroad
rate legislation. The president says:
Corporations.
l am in 10 sense hostile to corpora
tions. This is an age of combination.
and any effort to prevent all comUiua-
ton viii be not only useless but in the
end vicious, because Of the contempt
for law which the failure to enforce
law inevitably produces. The corporal
ton has come TO stay. just rs the
trades union has come to stay. Each
can do and has done great good Each
should be favored SO long as it does
good. But each should be sharply
checked where it acts against law and
Justice
Experience has shown conclusiyciy
that it is useless to try to get any ado-
Quate regulation and supervision of
these great corporations by state &C
ton. Such regulation and supervision
can only be effectively exercised by 4
sovereign whose jurisdiction is cock
tensive with the field orll of the cor
pOratiOns-thati is, by the national gov
eminent. / believe that this regulation
and supervision can be obtained by the
enactment of law by the congress. If
this proves impossible. it 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 no
power in the matter than that the na-
tional government has power: so that
there at present exists very unfortu-
nate condition Of things, under which
these great corporations doing an in
terstate business occupy the position Of
subjects without a sovereign. neither
any state government nor the national
government having effective control
over them. Our steady aim should be
by legislation, cautiously and carefully
undertaken, but reSolutely persevereI
in, to assert the sovereignty of the ma
tional government by affirmative &C
ton
This is only in form an innovation.
In substance it is merely a restoration.
for from the earliest time such regulu-
ton of industrial activities has been
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 separate
nation.
Railroad Rate Legislation.
AS l said i'll my message of Dec 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 regu-
latiCn of the rates charged by the rail
roads of the country engaged in inter
II tllIiC HLtilI SNlltllllLlL lO anu u
fectively prevent the imposition of I'M
just OF unreasonable rates. 1t must
include putting a 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 it 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 it whether 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 it is commonly call
ed-this decision to go into effect with
in a reasonable time and to obtain
from thence onward. subject to review
by the courts.
1t sometimes happens at present, not
that Il rate is too high. but that a IA
yored shipper is given too low Il rate.
In such case the commission would
have the right to fix this already estab-
liShed minimum rate rs the maximum.
and it would need only one or two such
decisions by the commission to euro
railroad companies Of the practice Of
giving improper minimum rates. 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 a rate already
fixed or originated by The roads upon
complaint and after Investigation. \
heavy penalty should be eXacted from
my corporation which fails to respect
mn order of the commission. | regard
this power to establish Il maximum
rate as being essential to any scheme
of real reform in the matter Of railway
regulation.
1t is worth while considering whether
it 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