Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-12-05

but they are far stronger today. in vie,S
of the enormous development of great
business agencies. usually corporate in
form. Experience has shown conclu
sively that ii is useless TO try TO get
any adequate regulation and super
vision of these great corporations by
state action. Such regulation and su.
pervisiOn can only be effectively exer.
cfsed by a sovereign whose Jurisdiction
is coextensive with the field of work of
the corporations-that is, by the nation,
al government. | believe that this reg
ulation and supervision can be obtain
ed by the enactment OF law by the con-
gress. 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. Ii
would obviously be unwise TO endeavor
to secure such an amendment until ii
is certain that the result cannot be OBJ
tanned under the constitution as il now
is. 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
national government has power: so
that there at present exists a very I'M
fortunate condition of things. under
which these great corporations doing
an interstate business occupy the pO-
stion of subjects without a sovereign.
neither any state government nor the
national government having effective
should he by legislation. cautiously and
carefully undertaken. but resolutely
persevered in. to assert the sovereignty
OF the national government. by affirma-
tive action.
An Innovation Only In Form.
This is only in form an innovation
In substance ii is merely a restoration,
for from the earliest time such regula-
ton of Industrial activities has been
recognized i'll the action of the law
making bodies. and all that l propose
is to meet the changed conditions in
such manner as will prevent the com
monwealth abdicating the power il has
always possessed, not only in this coun-
try, but also in England before and
since this country became Il separate
nation.
1t has been a misfortune that the Ma
tional laws on this subject have hither-
TO 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 effective
~ prohibited and have in part in their
prohibitions COMPOUNDED what should
be allowed and what should not be al
lowed. 1t is generally useless TO try
TO prohibit all restraint on competition.
whether this restraint be reasonable or
unrea Sonable. and where il is not use
less it is generally hurtful. Events
have shown that il Is not possible ade-
quately to secure the enforcement of
any law OF this kind by incessant ap-
peal to the courts. The department of
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
complshed; particularly marked has
been the moral effect of the proSecu-
lions. but ii is Increasingly evident that
there will be a very insufficient bene-
fetal result in the way of economic
change. The successful prosecution CT
one device to evade the law immediate
ly develops another device to accom-
plish the same purpose. What is need
ed is not sweeping prohibition of every
arrangement. good or bad, which may
tend To restrict competition. but such
adequate supervision and regulation
as will prevent any restriction of com
hn{ % hn a t-iT Of
the public as well as such supervision
and regulation as will prevent other
abuses in no way connected with re-
strictiOn of competition. OF these
abuses perhaps the chief although by
no means the only one, is Overcapital-
iZatiOn. generally itself the result of
dishonest promotion. because of the
myriad evils il brings in its train. for
such overcapitalization often means an
initiation that invites business panic.
II always cOncCalS the true relation of
the profit earned 10 the capital actually
invested. and it creates burden of in
tcreSt payments which i fertile cause
OF improper reduction in or limitation
OF wages. IL damages the small in
weston. discourages thrift and cncour-
dSSS SduuoilhS anu spe'didt!pu. WulIe
perhaps worst of all i the thickness
and dishonesty which i, implies. for
harm to morals is worse than any pos
sible harm TO material interests and
the debauChery OF politics and business
by great dishonest corporations is far
worse than any actual material evil
they do the public. Until the national
obtains in some manner
which the wisdom Of the congress may
suggest proper control over the big
engaged in Interstate com.
merce-that is. over the great majority
of the big corporations-it will be i'm
possible To deal adequately with these
evils.
Dali WAV DATE AITECTUnN