The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1905-12-09

that 1t IS NOT poSSlDle dueQudlely TO BE-
cure the enforcement of any law OF this
kind by incessant appeal to the courts. The
Department of Justice has for the last four
years devoted more attention to the enforce
ment of the antitrust legislation than to
anything else. Much has been accomplished;
marked has been the moral
effect Of the prosecutions; but it Is in
creasingly evident that there will be very
insufficient beneficial result in the way Of
economic change. The successful prOsecu-
tion Of one device to evade the law immedt-
ately develops another device to accOmp-
not sweeping prohibition Of every arrange
ment, good or bad, which may tend to re-
strict competition, but such adequate super
vision and regulation as will prevent any
restriction of competition from being to
the detriment Of the public--as well as
such supervision and regulation as will pre-
vent other abuses in no way connected with
restriction of competition. OF these abuses,
perhaps the chief, although by no means the
only one, Is disqualification generally IT.
self the result Of dishonest promotion be-
cause Of the myriad evils it brings in its
train; for such Overcapitalization often
means an imitation that invites business
panic is always conceals the true relation
of the profits earned to the capital actually
invested, and it creates burden of interest
payments which is a fertile cause of i'm
proper reduction in or limitation of wages !;
it damages the small investor, discourages
thrift, and encourages gambling and specu-
lation while perhaps worst of all Is the
thickness and dishonesty which it 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 pub
lie. 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
commerce-that is, over the great majority
of the big corporations-it will be impos-
sible to deal adequately with these evils.
l am well aware Of the difficulties Of the
legislation that l am suggesting, and of the
need Of temperate and cautious action in
securing it. l should emphatically protest
against improperly radical or hasty action.
The first thing to do is to deal with the
of interstate transportation. AS / said in
my Message Of December 6 last, the immed-
late and most pressing need, SO far as
legislation is concerned, is the enactment
into law of some scheme to secure to the
agents of the Government such supervision
and regulation Of the rates charged by the
railroads Of the country engaged in inter-
state traffic as shall summarily and effec-
lively prevent the imposition Of unjust, or
unreasonable rates. 1t must include putting
complete stop to rebates in every shape
and form. This power to regulate rates,
like all similar powers over the business
world, should be exercised with moderation,
caution, and self-restraint but it should
exist,-so that it can be effectively exercised
when the need arises.
No Unnecessary Interference.
The first consideration to be kept in mind
is that the power should be affirmative and
should be given to some administrative body
created by the Congress If given to the
present Interstate commerce commission or
to a reOrganized interstate commerce COM
mission, such commission should be made
unequivocally administrative. I do not be-
lieve in the government interfering with
private business more than is necessary.
do not believe In the government under
taking any work which can with propriety
be left in private hands. But neither do
believe in the government finching from
overseeing any work when it becomes evil
dent that abuses are sure to obtain therein
unless there Is governmental supervision. 1t
is not my province to indicate the exact
terms Of the law which should be enacted !;
but l call the attention Of the Congress to
certain existing conditions with which it is
desirable to deal. In my judgment the most
important provision whic.. such law should
contain is that comforting upon some COM
petent administrative body the power to de-
eide, upon the case being brought before It,
whether given rate prescribed by q rail-
road 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 1t
shall not be lawful to go-the maximum
reasonable rate, as 1t is commonly called
this decision to go into effect within rea-
sonalble time and to obtain from thence on
ward, subject to review by the courts. 1t
sometimes happens at present, not that q
rate Is too high but that favored shipper
liz given too low rate. In such case the
commission would have the right to fix this
already established minimum rate as the
maximum; and it would need only one or
two such decisions by the commission to
cure railroad companies Of the practice of
giving improper minimum rates. / cafl
your attention to the fact that my proposal
is not to give the commission power to
initiate or originate rates generally, but to
regulate a rate already fixed or originated
by the roads, upon complaint and after in
vestigation. A heavy penalty should be
exacted from any corporation which fails to
respect an order Of the commission. 1 re-
gard this power to establish a maximum
rate as being essential to any scheme of real
reform In the matter of railway regulation
The first necessity Is to secure it and un-
less 1t Is granted to the commission there
Is little use In touching the subject at all.
Certain Schemes for Giving Rebates.
Illegal transactions often occur under the
forms OF law. 1t has often occurred that
shipper has been told by traffic officer to
buy large quantity Of some commodity
and then after it has been bought an open
reduction Is made In the rate to take effect
Immediately, the arrangement resulting to
the profit Of one shipper and the one rail-
road and to the damage Of all their COM
petitors for it must not be forgotten that
the big shippers are at least as much to
blame as any railroad in the matter Of
rebates. The law should make it so clear
that nobody can fail to understand that any
kind Of commission paid on freight shin
ments, whether in this form or In the form
OF fictitious damage, or Of a concession.
free pass, reduced passenger rate, or pay
ment OF brokerage, IL illegal. It Is worth
while considering whether 1t would not be
wise to confer on the government the right
Of civil action against the beneficiary Of &
rebate for at least twice the value Of the
rebate; this would help stop what Is really
Dlackmail. Elevator allowances should be
stopped, for they have now grown to such
an extent that they are demoralizing and
are used as rebates.
An Honest Agrssmeu1 Wanted.
The best possible regulation Of rates
would, OF course, be that regulation secured
Dy an honest agreement among the railroads
themselves to carry ont the law Such q
general agreement would, for instance. at
once put stop to the efforts OF any one
big shipper or big railroad to discriminate
against or secure advantages over some
rival; and such agreement would make The
railroads themselves agents for enf0rcinO