Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-06

, law by the Congress. If this proves
| impossible, it will certainly De neoe
sary ultimately to confer III iuioo,
| form such power upon the i'd'ioA1
government by a proper alnehuihen' y.
| the constitution! 1t Woulo oo|ioS
| be unwise to endeaVor 10 SCI a
an amendment until 1t is certain 'ndl
| the result can not be optaineo uiluei
| the constitution as it now Is. Inc
| I.,ys of the Congress ana Oh the sew
| oral states hitherto, as passed upon NY
| tho courts, have resulted more olten III
showing that the states have no power
| In the matter than that the ndtiolldi
government has power; so that there
| at present exists a very unfortunate
condition of things, under which these
great corporations doing an interstate
business occupy the position OIL Sup-
iec,s without a sovereign, neither any
sta.e government nor the national gov
ernmcnt having effective control over
them. Our steady aim should be py
LEGISLATION, cautiously and carefully uh-
dertaken. but resolutely perSeVered Ill,
IN assert the sovereignty of the ma
tional government by affirmative ac-
ton.
This is only in form an innovation.
In substance it is merely restoratlon'
for from the earliest time such regula-
ton of industrial activities has been
recognized in the action of the law
making bodies; and all that l propose
is to meet the changed conditions III
such manner as will prevent the COM
monwealth abdicating the power 1t mas
always possessed, not only in this coun-
trv but also in England before ana
since this country became separate
nation.
1t has been misfortune that the nd
tional laws on this subject have hltnerto
been of a negative or prohlbltlve rather
than an affirmative kind, and still more
that thew have in part sought to pro-
hihit what could not be effectively pro-
hibited. and have in part in their pro-
hihitions COMPOUNDED what should be
allowed and what should not be al
lowed. 1t is generally useless to try 10
prohibit all restraint on competitlon'
whether this restraint be reasonable or
unreasonable; and where it is not use
less it is generally hurtful. Events
have shown that it is not possibly ade-
o,,ately to secure the enforcement or
any law Of this kind by incessant APP
neal 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-
cornplished; particularly marked has
| been the moral effect of the prosecu-
tons: but it is increasingly evident
| that there will be a very lnsuf1lcleht
beneficial result in the way of economic
change. The successful prosecution or
one device to evade the law Immediately
develops another device to accomplish
the same purpose. What is needed Is
not sweeping prohibition of every ar
rangement, good or bad, which may
tend to restrict competition, but such
adequate supervision and regulation as
will prevent any restriction of competl-
ton from being to the detriment OF the
public-as we'll as such supervision and
regulation as will 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 overcapitalization-g
| ally itself the result of dishonest pro-
| motion-because of the myriad evils it
| brings in it's train; for such Overcap-
italization often means an imitation that
| invites business panic: it always con-
ceals the true relation of the profit
earned to the capital actually invested.
and it creates a burden of interest pay
ments which is fertile cause of impro-
| per reduction in or limitation of wages;
it damages the small investor, discour-
| hrif nd 90
and speculation; while perhaps worst
of all is the thickness and dishonesty
which it impIies-for harm to morals Is
worse than any possible harm to ma
terial 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 Government obtains
in some manner which the wisdom OF
the Congress may suggest, proper con-
troll over the big corporations engaged
in interstate commerce-that is, over
the great majority of the big corpor-
ations-it will be impossible to deal
adequately with these evils.
1 am we'll aware of the difficulties of
the legislation that 1 am suggesting
and Of the need of temperate and
! cautious action in securing it. l should
! emphatically protest against impro-
! perly radical or hasty action. The first
, thing to do is to deal with the great
corporations engaged in the business OF
interstate transportation. AS l said in
my Message of December last. the
immediate and most pressing heed, SC
far as legislation is concerned is the
enactment into law of some scheme tC
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 proven,
! the imposition of unjust or unreason.
a able rates. 1t must include putting a
;. | complete stop to rebates in every shap.
q and form. This power to regulate
rates. like all similar powers over the
business world. should be exercised
r with moderation. caution. and self.
restraint; but it should exist, SO that
it can be effectively exercised when the
q need arises.
e The first consideration to be kept ir