Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-05

kept upon an honest basis no other question
OF internal economy with which the Con-
sress has the power to deal begins to ap-
proach in Importance the matter of en-
deavoring TO secure proper Industrial con-
ultions under which the Northumberland
especially the great corpora tlons--doing an
interstate business are to act. Tie makers
OF our national Constitution provided espe-
clally that the regulation of interstate COM
mefce should come within the sphere OF the
general government. The arguments In
favor Of their taking this stand were even
then overwhelming. But they are far
stronger today, In view of the enormous de-
velopment of great business agencies.
usually corporate in form. Experience has
SHOWN conclusively that 1t is useless to try
10 get any adequate regulation and SUPER
vision of these great corporations by state
aetlon- Such regulation and supervision
can only be effectively exercised by a SOW
ereign whose jurisdiction lis ceextens.ye
with the field Of work of the corpora tons
lhat Is, py the national government | be-
iie'e That TINS regulation and supervision
can DC obtained by the enactment OF law
by the Congress. IL this proves impossible
I" wiz certainly be necessary ultimately 20
confer In fullest form such power uoon ths
ment or the Constitution. 1t would obyious
~ be unwise to enueavor 10 secure such an
amendment until 1t is certain that the re-
suit cannot be obtained under the Consfitn-
tion as It now is. 1ne-laws Of the Congress
anu Oh the several states hitherto, as passed
upon Dy the courts. nave resulted mora
often in showing that the states bs,e M
power IN the matter than that the national
government has power; SO thar tbera ar
present exists a very unfortunate condi
uoh OF things, under winch these sraa.
corporations uoing an Interstate husInass
occupy the poSluoR of SUBJECTS yi.bni,. f.,
sovereign, neither any state eoysrnnnanr
nor the national government having effsc-
i've control over them. Our steady aim
shou4u ne by legislation, cautiously and
eaieiuIy uhaertaken, out resomte,y nsr-
Sesereo H. 10 assert lie soYereienry of tba
HaI'oaat government Dy affirmative action
ANS ID onIy IN form an Innovation In
suoS'dice u Is mercy a restoration. for
from Inc earnest ttme suca reputation or
tiuustiiaI activities mas been recognized in
ZIG aelioh Oh the iAw-maAing bCales: and
all mat propose 10 meet the -caanged
CONDITIONS IN sucn manner as VIII urevep-
the commonweagtn aDuteaunE the p.,v,er it
mas Always possessed. NOT only IN TINS conn
Try put also III i.nsiand peIore and since
TINS country became d separate nation.
IL mas Deen misfortune thai the ma
tional laws on tnIs sau,ecI nave hifber,
been of negative or productive rather
than an Affirmative KIND and stiu mora
than that they nave IN part sought 10 nro-
htbit what could not De effectively nroh!b n
tied, and nave IN part IN their prohibitions
COMPOUNDED what should be allowed and
what should not be allowed. Ii is generalJv
useless to try 10 pronioit all restraint on
competition, whether tbs restraint he reas
onapie or unreasona oie: ana where If is nor
useless 1t Is generally hurtful. Events hava
SHOWN that IL Is not possible adequa teiy to
secure 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 en-
iorceneht OF the antitrust leg station than
to anything else. Much has been accom-
pushed particularly marked has been the
moral effect OF the prosecutions; but II Is
increasingly evident that there VIII be q
very insufficient beneficial result in the wav
of economic change. The successful prose-
cution of one device TO evade the law in1nle
diately develops another device to accom-
plish the same purpose What is needed Is
ment, good or bad, which may tend 10 re-
strict competition, but such adequate super
vision and regulation as Will prevent any
restriction of competition from being 10 the
detrlment of the public-as well as such su-
pervision and regulation as will prevent
other abuses in no way connected with re-
striction of competition. OF these abuses,
perhaps the chief although by no means
the only one, is overcapitalzatlon-ge
ally Itself the result of dishonest promotion
because of the myriad evils It brings In
It's train; for such overcapitalzat!on often
means an imitation that invites business
panic; It always conceals 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 i'm
proper reduction in or Limitation OF wages;
1t damages the small investor. discourages
thrift, and encourages gambling and specu-
lation; while perhaps worst of all is the