The daily morning journal and courier., 1905-12-06

E"eniS have shown that it Is not pos sibIv U, qua ely to secure the enforce n Tt # any law of this kind by inces- san, appeal tu the courts. The Depart ment of Justice has for the last four years devoted more attention to the en- forcement of the antitrust legislation than to anything else. Much has been accomplished; particularly marked aas been the moral effect of the prosecu- tions; tut it is increasingly evident that there will be a very insufficient beneficial result in the way of economic change. The successful prosecution Of one device to eyade 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 res riction of compe- tition from being to the detriment 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 CSSeE, although by no means the only on IS overcapitali- zation-generally itselsSShe result of dishonest prmotion - because of the myriad evils it brings in its train; for such apitalizati0n often means an imitation that invites business panic; it always conceals the true relation of the profit earned to the capital actual ly invested, and it creates a burden of interest payments which is fertile cause of improper reduction in or linn itation of wages; it damages the small investor, discourage thrift, and en- courages gambling and speculation: while perhaps worst of all is the tricki- ness and dishonesty which 1t implies for harm to morals is worse than any possible 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 Government obtains, in some manner which the wisdom of the Congress may suggest, proper control over the big corporations 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 thes: evils.
 I am we'll aware of the difficulties O.
 the legislation that I am suggesting, ant
 of the need of temperate and caution! action in securing it. I should em.
 phatically protest against improperly radical or nasty action. The first thing
 to do is to deal with the great cor
 poratiOns engaged in the business o
 interstate transportation. As I sait in my message of December last, the immediate and most pressing need, SC far as legislation is concerned, is tht
 enactment into laws of some scheme tc secure to the agents of the government
 such supervision. and regulation of thc
 rates charged by the railroads of the
 country engaged in interstate traffic as shall summarily and effectively prevent
 the imposition of unjust or unreason- able rates. It must include putting g complete stop to rebates in every shape and form. This power to regulate rates
 like all similar powers over the busi ness world, should be exercised witt moderation, caution and self-restraint
 but it should exist, so that it can, b. effectively exercised when the neec arises.
 The first consideration to be kept ir
 mind is that the power should be af-
 firmative and should be given to some
 administrative body created by the
 Congress. If given to the present in
 terstate Commerce Commission or to g
 reorganized Interstate Commerce Com. mission, such commission should bt
 made unequivocally administrative.
 do not believe in the Government in. terfering with private business more than is necessary. I do not believe 1T
 the Government undertaking any work which can with propriety be left in pri-
 vate hands. But neither do 1 believe 1T
 the Government fiinching from over seeing any work when it becomes evi' dent that abuses are sure to obtain therein unless there is governmental
 supervision. It is not my province tc indicate the exact terms of the law
 which should be enacted; but I call tht attention of the congress to certain ex. isting conditions with which it is desir.
 able to deal. In my judgment the mos important provision which such law
 contain is that comforting upon some competent administrative body tho
 power to decide, upon the case being brought before 1t, whether a given rate prescribed by railroad is reasonable
 and just, and if it is found to be un.
 reasonable and unjust, then, after full investigation of the complaint, to pre-. scribe the limit of rate beyond which it shall not be lawful to go--the maxi mum reasonable rate, as it is commonly
 within reasonable time and to obtain from thence onward, subject to reviews by the courts. It sometimes happens al present, not that a rate is too high, bu
 that a favored shipper is given too low
 a rate. In such case the Commission would have the right to fix this already | established minimum rate as the max. imum; and it would need only one ol two such decisions by the Commission to cure railroad companies of the prac. ttce of giving improper minimum rates
 l call your attention to the fact that
 my proposal is not to give the com
 mission power to initiate or originate
 rates generally, but to regulate a rate
 already fixed or originated by the roads, upon complaint and after inves- tigation. A heavy penalty should be
 exacted from any corporation which fails to respect an order of the Com