The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1905-12-09

Later---Other Matters.
Washington, Dec. 5.-The annual mes
sage Of President Roosevelt was read in
both houses of congress to-day. It is a doc
ument Of some 24,OO0 words, and con-
tAins recommendations for much important
legislation.
The subject Of federal supervision Of cor
porations. and especially railroad corpora
tions, is the first subject treated Of by the
president, and to It he gives the greatest
amount of attention. After speaking OF the
general prosperity OF the country, and the
power of the corporations for good or evil
in connection with the nations prosperity,
he says:
So long as the nances Of the nation
are kept upon an honest basis, no other
question OF internal economy with which
the congress has the power to deal begins
10 approach In importance the matter Of
~endeavorlng to secure proper industrial
conditions under which the individuals
and especially the great corporations
doing an Interstate business are to act.
The makers Of our national constitution
provided especially that the regulation
OF Interstate m should come with
in the sphere Of the general government.
The In favor Of their taking
this stand were even then overwhelming.
But they are far stronger to-day, in view
OF the enormous development Of great
business agencies, usually corporate in
form. Experience has shown conclusive
ly that 1t is useless to try to get any
adequate regulation and supervision Of
these great corporations by state action.
Such regulation and supervision can only
be effectively exercised by a sovereign
whose jurisdiction is coextenslve with the
field of work OF the corporations-that is,
by the national government, / 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 national government by a proper
amendment of the constitution. It would
obviously be unwise to endeavor to secure
such an amendment until 1t is certain
that the result cannot be obtained under
the constitution as 1t now is. Tit 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 national government has
power; so that there at present exists
a very unfortunate condition OF things.
under which these great corporations do
ing an interstate business occupy the DO
sition Of subjects without a sovereign,
neither any state government nor the ma
tional government having effective con-
troll over them. Our steady aim should
be by legislation, cautiously and care
fully undertaken, but resolutely per-
severed in, to assert the sovereignty Of
the national government by affirmative
action.
Present Laws Inadequate.
It has been a misfortune that the ma
tional laws on this subject have hitherto
been Of a negative or prohibitive rather
than an affirmative kind. and still more
that they have in part sought to prohibit
what could not be effectively prohibited
and have In part in their prohibitions
COMPOUNDED what should be allowed and
what should not be allowed. 1t Is gen
orally useless to try to prohibit all re-
straint on competition, whether this re-
straint be reasonable or unreasonable:
and where 1t is not useless Il is gener-
ally hurtful. Events have shown that it
Is not possible adequately to secure the
enforcement Of any law OF this kind by
'NI'NA ~ Alt GouIAA. me de-
partmeht Of Justice has for the last four
years devoted more attention IN the en-
forcetnent of the antitrust legislation
than 10 anything else. Much has been
accomplished: particularly marked has
been the moral effect Of the prosecutions
Dut Do Us increasingly evident that there
VIII be a very insufficient beneficial re-
suit In the way of economic change. The
successful prosecution of one device TO
evade the law Immediately develops an
other device to accomplish the same pur-
pose, What Is needed is not sweeping
prohibition Of every arrangement, good
or bad, which may tend to restrict com
petition, but such adequate supervision
and regulation as win prevent any re-
striction of competition from being &c
the detrimpnt of the. public-as we'll as
such supervision ana regulation as viii
prevent other abuses in no way connected
with restriction Of competition. OF these
abuses. perhaps the chief, although by
no means the only one, is overcapltallza'
tion-generally itself the result Of dishon.
est promotion-because 81 the myriad
evils it brings In its train; for such over
capitalization often means an imitation
that invites business panic; II always con
ceals the true relation of the profit earned
10 lnt ICdplNdl ACTUALLY hVesltus anu ]
creates a burden Of interest payments
which Is "a fertile cause Of improper re
duction in or Limitation OF wages; I
damages the small Investor, discourage
thrift. and encourages gambling ant
speculation; while perhaps worst Of al
IS the thickness and dishonesty which 1
implies-for harm to morals Is worse thai
any possible harm to material interests
and the debauchery Of politics and busl
ness by great dishonest corporations 1
far worse than any actual material evl
they do the public. Until the nationa
government obtains. in some name
which the wisdom OF the congress ma.
suggest. proper control over the big cor
porations engaged in interstate commerce
THAT is. yer the great majority OF tn
big corporatlons-it will be impossible I
deal adequately with these evils.
Railroad Rate Regulation.
I am well aware OF the diAicultie
pt the legislation that l am suggest