Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1905-12-07


ity of the nation. The close relation
ship and mutual dependence upon
each other of capital and labor are
pointed out, and the message con-
tinues:
Corporations.
Yet, while not merely admitting. but in
sisting upon this, IL is also true that
where there Is no governmental restraint
or supervision some of the exceptional
men use their energies not in ways that
are for the common good but III ways
which tell against this common good.
The fortunes amassed through corporate
organization are now so large and vest
such power in those that WELD them, as
to make IL matter OF necessity to give
TO the sovereign-that is, to the Govern
ment which represents the people as
wholesome effective power OF supervis-
lon over their corporate use. In order to
insure a healthy social and Industrial life,
every big corporation should be held re-
spOnsible by, and be accountable to, some
sovereign strong enough to control It's
conduct. am in no sense hostile to cor
porations. This is an age OF combination.
and any effort to prevent all combina-
ton viii be not only useless. but in the
end vicious. because OF the contempt for
lay which the failure to enforce law in
recognize in cordial and ample fashion the
immense good effected by corporate
aSgeneies, IN country such as ours our ea and
ity devoted to their service and there
fore normally to the service of the public,
by their officers and directors; The cor
poration has come to stay, Just as the
trade 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
The President shows the impossi-
bility of the individual states deal
ing successfully with corporation
greed, and the necessity of comforting
power upon the general government
even to the extent Of proper amend
ment to the constitution. He says:
1t has been misfortune that the
national laws on this subject have hither
to been Of a negative or prohibitiye rather
than an athrmatiEe Alnd' ana sun more
that they have i'll part sought to pro
hibit what gould not be effectively pro-
hlbitCd. and have in part in their pro-
hibitions COMPOUNDED what should be
allowed and what should not be allowed.
II is generally useless to try TO prohibit
all restraint on competition whether this
restraint be reasonable or unreasonable;
generally hurtful. Events have shown
that 1t Is not possible adequately to
secure the enforcement OF any law Of this
The Department Of Justice has for the
last four years devoted more attention
10 tile enforcement OF the anll-lFuSl leRlS-
lation than to anything else. Much has
been accomplished; particularly marked
has been the moral effect of the prosecu-
tons; but it is increasingly. evident that
result in the way OF economic change.
The successful prosecution of one device
to evade the law Immediately develops
another device to accomplish the same
purpose. What is needed is not sweeping
prohibition OF every arrangement, good or
Lad which may tend to restrict compcti-
uHAnlIIta GIInnfUiGi0n
regulation as will prevent any restriction
d competition from being to the detri
supervision and regulation as will pre-
vent other abuses in no way connected
with restriction of competition. OF these
abuses, perhaps the CHIEF: although by
no means the only one. is OyerCaptallza-
tion-gCnerally Itself the result of dis
lonest plomotion--bCcausa Of the myriad
evils Il brings in its train; for such over
capitalization often means an imitation
that invites business panic; 1t always con-
eeals the true relation of the profit earned
to the actual capital invested and IL
creates a burden of interest payments
which Is fertile cause Of improper re-
iuctlon or In limitation of wages; 1t
thrift, and encourages gambling and spec
dlaCon; while perhaps worst of al Is the
thickness and dishonesty which II implies
for harm to morals and worse than any
possible harm to material interests, and
the debaucheIy of politics and business
by great dishonest corporations Is far
worse than any, actual material evil they
80 the public. Until the national govern
ment obtains. in some manner which the
Wi&dcm OF the Congress may suggest.
proper control over the big corporations
engaged in interstate commemorative is,
over the great majority of the big COR
porations--it will be impossible to deal
adequately with these evils.
| am we'll aware of the difficulties of
the legislation that l am suggesting, and
81 the need OF temperate aud cautious
ACTION in securing It. | should emphatic
ran or
hasty action. The first thing to do is
20 deal with the great corporations en-
2ortation; As said in my message Of
Dec. o 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 governments such supervision and
regulation of the rates charged by the
state traffic as si'ail summarily and
effectively prevent the imposition OF I'M
Just or unreasonable rates. 1t must in
in every shape and form This power to
regulate ties like all similar powers
over the business world. should be exer-
ciSed with modeTa ton. caution. and self
restraint: but it should exist, so that 1t
| 2an be effectively exercised when the
need arises.
The first consideration TO be kept in
mind is that the power should be affirm
alive and should be given to some adj
| illustrative body created by the Congress.
| II given TO the present Interstate Com
merce commission or TO reorganized
| Interstate Commerce commission such
| commission should be made unequivocally
| administrative; ! do not. believe in the
government interfering with private bust
| ness more than Is necessary. | do not
| believe in the government undertaking
any work. which can with propriety be
| left In private hands. But. neither do
/ believe in the government fiinching from
| overseeing any work when It becomes
/ evident that abuses are sure to obtain
Il herein there m a Il "a
| supervision. 1t is not my province to
| Indicate the exact terms OF the law which
| should be enacted but j call the attention
| 9f the Congress to certain existing con-
| 1itlons with which 1t is desirable TO deal
In my Judgment the most important pro-
| tisiun which such law should contain
IS that comforting upon some competent
| administrative body the power to decide
| lpon the case being brought before IT,
| whether given rate prescribed by a rail-
road is reasonable and lust and II 1t is
| found to be unreasonable and unjust
| then, after full investigation of the COM
Plaint to prescribe, the limit OF rate
beyond which il shall not be lawful TO &c
the maximum reasonable rate. as il Is
| commonly called--this decision TO 90 into
| effect within reasonable time and tc
obtain from thence onward. subject to
| .eyiew by the courts. II sometimes hap
pens at present, not that a rate is toc
high but that a favored shipper is giver
too low a rate. In such case the commits
sion would have the right to fix this
already established minimum rate as
only one or two such decisions
by the commission to cure railroad com
lpanies OF the practice of giving improper
minimum rates. l call your attention tC
the fact that my proposal Is not to give
the commission power to initiate OF
originate rates generally, but to regula Il
| rate already fixed or originated by th'
roads, upon complaint and after investi
CATION. heavy penalty should be ex
| acted from any corporation which fail
| to respect an order OF the commission.
regard this power to establish a maximum
rate as being essential to any scheme o
Regulation. The first necessity is to Sc
cure II: and unless 1t Is granted to tn
commission there Is little use In touch