The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1905-12-07
PRESIDENTS MESSAGE
Government Regulation of Railroad
Rates Is Strongly Urged-Insur-
anCe Legislation Needed.

The following is a synopsis Of the
presidents message:
"The people of this country continue
to enjoy great prosperity" says the
president in his opening paragraph.
He then proceeds to give various con-
ditions and circumstances which make
for or against general prosperity and
leads up to the question Of cor pora-
lions, of which he says: ""The for
tunes amassed through corporate or
ganization are now SO large, and vest
such power in those that WELD them,
as to make it a matter of necessity to
give to the sovereign-that is to the
government, whicb represents the peo-
pie as a wholesome effective power
of supervision over their corporate
use. In order to insure a healthy So
cial and industrial life, every big COR
poration should be held responsible
by, and accountable to, some sovereign
strong enough to controi it's conduct.
/ am In no sense hostile to corpora
tions. This is an age of combination,
and every effort to prevent all combi-
nation will be not only useless, but
in the end vicious, because Of the con
tempt for law which the failure to en-
force law inevitably produces. The
corporation 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 as long as it
does good. But each should be sharp
ly checked where it acts against law
and justice"
The president points out the useless
ness of any attempt to secure regula-
ton and control of corporations by
state action. Such regulation and su-
pervision can only be effectively exer-
cised by the national government, and
the president believes proper power
can be secured by enactment Of laws
by congress; If the Constitution will
not permit this action, then the Con-
stitution should be amended comforting
upon congress full power to enact ad-
equate legislation. He continues:
What is needed is not sweeping
prohibition of every arrangement,
good or bad, which may tend to re-
strict competition, but such adequate
supervision and regulation as will pre-
vent any restriction Of competition
from being to the detriment of the
public-as we'll as prevent other
abuses IN no way connected with re-
striction of competition. Until the
national government obtains proper
control over big corporations engaged
in interstate commerce it will he I'M
possible to deal adequately with the
evils.
Control of Railroad Rates.
THE Immediate and most pressing
need, so far as legislation is concern
ed, is the enactment into law or some
scheme to ecure to the agents of the
government such supervision and reg
ulation Of the rates charged by the
railroads Of the country engaged III
interstate traffic as shall summarily
and effectively prevent the imposition
of unjust or unreasonable rates. 1t
must include putting a complete stop
to rebates in every shape and form.
This power to regulate rates, like all
similar powers owe the business
world, should be exercised with mod
Grafton, caution and self.restraint; but
it should exist, so that it can be eff
fectively exercised when the need
arises.
1.-The first consideration to be kept
in mind Is that the power should be
affirmative and should be given to
some administration body created by
congress. | do not believe in the gov
eminent interfering with private bust
ness more than is necessary. l 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 linching
from overseeing any work when it
becomes evident that abuses are sure
to obtain therein unless there Is gov.
ernmental supervision. In my judg.
ment the most important provision
which the law should contain is that
comforting upon some competent ad-
ministration body the power to decide,
upon the case being brought before it,
whether a given rate prescribed by a
railroad is reasonable and just, and if
it is found to be unreasonable and
unjust, then, after full investigation of
the complaint, to prescribe the limit of
rate beyond which it shall not be law.
full to go-the maximum reasonable
rate, as it is commonly called-this de-
cision to go into effect within a rea.
sonable time and to obtain from
thence onward, subject to review by
the courts. 1t sometimes happens at
present, not that a rate is too high but
that a favored shipper is given too
low a rate. In such last the COM
mission would have the right to fix
this already established minimum rate
as the maximum; and 1t would need
only one or two such decisions by the
commission to cure railroad companies
of the practice of giving improper
minimum rates. My proposal is not
They Understood Each Other.