Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1905-12-15
%ROOSEVELT'S MESSAGE
BREATHES OF REFORM
Presidents Annual Commune
cation Delivered to Congress
at Washington.
STRONG FOR RATE REFORM
Makes Many Suggestions, but This lis
the Chief One-Would Supervise
In~surance-Not Ripe for
Tariff Reform.

Washington, d. c. Dec. president
Roosevelt delivered his annual message
to- congress today. The document was
q lengthy one Of more than $4,000
words. II breatheS reform from hrst
to last. Chief and foremost is the
demand for rate legislation which he
goes into in great detail. He also rec
ognizes the insurance evils and urges
federal supervision of insurance and
OF other great corporations. He fails
to recommend revision OF the tariff,
saying it is not required as yet. HIS
message in part follows:
To the senate and house OF representa-
tives:
The people of this country continue to
enjoy great prosperity. Undoubtedly there
will be ebb and flow In such prosperity,
less by all members Of the community,
both by the deserving and the undeserving.
Against the wrath OF the Lord the wisdom
of man can not avail; in times of food or
drought human ingenuity can but partially
repair the disaster. A general failure or
crops would hurt all of us. Again, If the
folly of man mars the general Well-being,
then those who are innocent OF the folly
will have to pay part of the penalty in
Cured by those who are guilty of the folly.
A panic brought on by the speculative folly
of part OF the business community would
hurt the whole business community. But
such Stoppage of welfare though 1t might
be severe, would not be lasting. In the
long run the one vital factor in the perma-
nent prosperity of the country is the high
individual character of the average Amer
tcan worker, the average American citizen,
no matter whether his work be mental or
manual, whether he be farmer or wage
worker, business man or professional man.
Control of Corporations.
The fortunes amassed through corporate
organization are now so large, and vest
such power in those that WELD them, as to
make II a matter of necessity to give to
the s~overeign-that is, to the government,
which represents the people as a whole
some effective power Of supervision over
their corporate use. In order to insure a
healthy social and industrial life, every
big corporation should be held responsible
by, and be accountable to, some sovereign
strong enough to control its conduct. / am
in no sense hostile TO corporations. This
Is an age of combination, and any effort
TO prevent I'll combination Will be not only
useless, but in the end vicious, because of
the contempt for law which the failure to
enforce law inevitably produces. The cor
poratlon 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 so long as it does good. But
each should be sharply checked where it
acts against law and justice.
State Legislation lmpotent.
Experience has shown conclusiveIy that
II Is useless TO try to get any adequate
regulation and supervision of these great
corporations by state action. Such regu-
lation and supervision can only be effec-
lively exercised by a sovereign whose
jurisdiction is co extensive with the field of
work of the corporation-that is, by the
nats9nal government. L believe that this
regulation and supervision can be obtained
by the enactment Of law by the congress.
If 1t proves impossible, it Will certainly be
necessary ultimately to confer in fullest
form such power upon the national govern
ment by a proper amendment of the con-
stitution. 1t would obviously be unwfse TO
enoeaVor TO secure such an amendment
until 1t is certain that the result can not
be obtained under the constitution as it
new is.
What Is needed is not sweeping prohibi-
ton of every arrangement. good or bad,
winch may tend to restrict competition,
but such adequate supervision and regu-
lation as Will prevent any restriction of
competition 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 com
petition.
Abuse of ver.Capitaiization.
OF these abuses, perhaps the chief, al
though by no means the only one. is over
cap1talization-gencrally itself the result
or ~dishonest observation-disclosures of the
myriad evils il brings in It's train; for such
overcapitalization often means an imitation
that Invites business panic; 1t always con-
ceals the true relation of the profit earned
TO the capital actually invested, and it
creates a burden Of interest payments
Which Is a fertile cause of improper reduc-
ton in or limitation of wages; it damages
the small investor, ~discourages thrift. and
encourages gambling and speculation;
while perhaps worst OF all is the thickness
and dishonesty which it implies-for harm
70 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.
Railroad Fate Legislation.
The first thing to do is to deal with the
great corporations engaged in the bust
ne9S of infarEt RI 70 fpo nGnnrtn4inn A. II
said in my message OF December 6 last. the
Immediate and most pressing need, so far
as legislation is concerned, is the enact
ment into law of some scheme to secure
TO the agents of the government such SUI
2erviston and regulation Of the rates
charged. by the railroads of the country
engaged In interstate traffic as shall sum-
marily and effectively prevent the imposi-
tion OF unjust or unreasonable rates. 1t
must Include putting a complete stop TO
rebates IN every shape and form. This
power to regulate rates, Ike all similar
powers over the business world, should be
exercised with moderation, caution, and
self restraint; but it should exist, so that
1t can be effectively exercised when the
need arises.
Commission Must &c Administrative.
The nrst consideration to be kept in
mind Is that the power should be affima-
tive and should be gwen TO some adn1inis-
trative body treated by the congress. i,
given TO the present Interstate Commerce
commission or TO & reorganized Interstate
Commerce commission, such commission
should be made unequivocally administra.
tive.
Suggests the Terms.
1t Is not my province to indicate the ex-
act terms of the law which should be en-
aoted; but 1 call the attention of the con-
gress to certain existing conditions with
which IL IS desirable to deal. In my 1ude-
ment the most important provision which
such law should contain is that comforting
upon some competent administrative body
Ne power 70 decide, upon the case being
brought before IL, whether a given rate
prescribed by a railroad is reasonable and
just, and II II rs found to be unreasonable
and unjust, then, after full investigation
CT the complaint, to prescribe the limit
OF the rate beyond which it shall not be
lawful to go-the maxi1aum reasonable
rate. as 1t Is commonly callcd-this de-
ct1ion to so into effect within a r~casonab BILE
time and TO obtain from thence onward,
subject to review by the courts.
Prohibit Too Lew Rates.
II sometimes happens at present. not that
= rate IS too high but that q favored ship
per II given too low a rate. In ouch case
the commission would have the right to
Tx this ntrecdy established minimum rate
a. chc maximum: and It wou1d need only
one or two such Decisions by the confMais-
son to cure railioad companies Of the
practice OF giving improper minimum
call your attention to the fact that my
prepoesi Is not to give the COMMISSION
pOvlHr I'm initiate or originate rates gen
er11ly, bun 10 regulate q rate already fixed
OF 0ffgfngted by the roeds. upon com
plant gnd after investigation. A heavy
3~AAlt~ A-x 1890 -