The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1905-12-05

ton of one device to evade the Law
Immediately develops another deyic,
70 accomplish the same purpose
What is needed is not sweeping pro
hibition of every arrangement, good
or bad, which may tend to restrict
competition, but such adequate
supervision and regulation as will
prevent any restriction of competi-
tion from being to the detriment Of
the public-as well as such suPeryis-
ion and regulation as will prevent
other abuses in no way connected
with restriction of competition. OF
these abuses, perhaps the chief, al
though by no means the only one, is
overcapitalization generally itself
the result of dishonest promotion
because of the myriad evils it brings
in its train for such overcapitaliza-
ton often means an imitation that
invites business panic; it always con-
ceals the true relation of the profit
earned to the capital actually invest
ed. and it creates burden of inter-
est payments which is fertile cause
of improper reduction in or imita-
ton of wages it damages the small
investor, discourages thrift, and en-
courages gambling and speculation !;
while perhaps worst of all is the
trickiness and dishonesty which it
implies-for harm to morals is worse
than any possible harm to material
interests, and the debauchery of
politics and business by great dis
honest corporations is far worse than
actual material evil they do the pub
lie. Until the National Govern
ment obtains, in some manner which
the wisdom of the Congress may
suggest, proper control over the big
corporations engaged in interstate
co1nmerce-that is, over the great
majority of the big corporation
it viii be impossible to deal ade-
quately with these evils.
I am we'll aware of the difficulties
of the legislation that am suggest
ing. and of the need of temperate
and cautious action in securing 1t
I should emphatically protest against
improperly radical or hasty actioT
The first thing to do is to deal With
the great corporations engaged in
the business of interstate transport
tation. As I said in my Message of
December 6 last, the immediate and
most pressing need, so far as legisla-
ton is concerned, is the enactment
into lawof some 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 interstate traffic
as shall summarily and effectively
prevent the imposition of unjust or
unreasonable rates 1t must include
putting 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.
caution, and self-restraint but it
should exist, so that it can be eff
fectively 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. If given to the pres
ent Interstate Commerce Commits
sion or to a reorganized Interstate
Commerce Commission, such com
mission should be made unequivocal-
Iv administrative. I do not believe
in the Government interfering with
private business more than is neces-
sarv. 1 do not believe in the Gov.
eminent undertaking any work
which can with propriety be left in
private hands. But neither do ] be-
lieve in the Government f1inchlng
from overseeing any work when it
becomes evident that abuses are sure
TO obtain therein unless there is gov
Ornamental supervision. 1t is not my
province to indicate the exact terms
of the law which should be enacted;
but l call the attention of the Con
gress to certain existing conditions
with which it is desirable to deal.
In my Judgment the most important
provision which such law should con-
tain is that comforting upon some
competent administrative body the
power to decide, upon the case being
brought before it, whether a given
rate prescribed by railroad is rea--
sonable and just. and if it is found
to be unreasonable and unjust, then
after full investigation of the COM
plant. to prescribe the limit of rate
bevond which it shall not be lawful