Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1905-12-08
PRES|DENT'SMESSACE

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President Rooscvclt'S annual message
has been delivered to congress. Open
Ing with plea for the cooperation of
all Glasses In continuing the country's
prosperity and in correcting existing
evils, for II Square deal" for every
body. the message first takes up the
question Of corporations and railroad
rate legislation. The president says:
Corporations.
/ am in no sense hostile to corpora
tionS. This Is an age of combination.
and any effort to prevent all cOnblna
ton 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 corpora
ton has come to stay, Just as the
trades union has come to stay. Each
can do and has done great good. Each
should be favored so long as 1t does
good. But each should be sharply
checked where 1t acts against law and
Justice
Experience has shown conclusively
that it is useless to try to get any ade-
quate regulation and supervision Of
these great corporations by state ac-
ton. Such regulation and supervision
can only be effectively exercised by n
sovereign whose jurisdiction is cock
iensive with the field work Of the cor
pOrations-that Is, by the national gov
eminent. believe that this regulation
md supervision can be obtained by the
enactment Of law by the congress. If
this proves impossible, 1t will certainly
be necessary ultimately to confer in
fullest form such power upon the ma
tional government by affirmative &C.
ment of the constitution.
The laws of the congress and Of the
several states hitherto. as passed upon
by the courts, have resulted more often
in showing that the states have no
power In the matter than that the ma
tiOnal government has power; SO that
there at present exists n very unfOrtu-
nate condition Of things. under which
these great corporations doing an in
terstate business occupy the position Of
subjects without n sovereign, neither
any state government nor the national
government having effective control
over them. Our steady aim should be
by legislation, cautiously and carefully
undertaken, but resolutely persevered
In. to assert the sovereignty Of the na-
tionaf government by affirmative aci
ton.
This Is only in form an innovation.
In substance 1t Is merely q restoration,
for from the earliest time such regula-
ton of Industrial activities has been
recognized In the action Of the law
making bodies, and all that I propose
Is to meet the changed conditions in
SUCH manner rs will prevent the CON-
mOnwealth abdicating the power it has
always possessed. not only In this coun-
try. but also In England before and
since this country became q separate
nation.
Railroad Rate LeGislati0n.
As l said IN my message Of Dec. 6
last. the immediate 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 regu.
latiOn Of the rates charged by the rail-
roads Of the country engaged In inter-
state traffic as shall summarlly and CT
fectively prevent the imposition Of un-
Just or unreasonable rates. 1t must
include putting a complete stop to re-
bates 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 1t should exist,
SO that 1t can be effectively exercised
when the need arises.
In my Judgment, the most important
provision which such law should con-
tain Is that comforting upon some COM
potent administrative body the power
to decide upon the case being brought
before 1t whether a given rate pre-
scribed by railroad is reasonable and
Just, and II 1t is found to be unreason-
able and unjust then, after full investi-
CATION Of the complaint, to prescribe
the limit Of rate beyond which 1t shall
not be lawful to gothic maximum
reasonable rate, as it Is commonly call
ed-this decision to go into effect with
from thence onward, subject to review
by the courts.
It sometimes happens at present, not
that a rate is too high, but that q IA
vOred shipper is given too low rate.
In such case the commission would
have the right to fix this already estab-
lIshed 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. call
your attention to the fact that my pro-
posal is not to give the commission
power to initiate or originate rates gen.
orally, but to regulate rate already
fixed or originated by the roads upon
complaint and after investigation. A
heavy penalty should be exacted from
any corporation which fails to respect
an order of the commission. regard
this power to establish a maximum
rate as being essential to any scheme
Of real reform In the matter of railway
regulation.
It is worth while considering whether
It would not be wise to confer on the
government the right Of civil action
against the beneficiary Of rebate for
Mt least twice the value of the rebate.
This would help stop what Is really
blackmail. Elevator allowances should
be stopped, for they have now Crowd
10 such IN extent that they are donor
alizinG and are used as rebates.
Private Car Lines.
All private cur lines, industrial roads.
refrigerator charges and the like
should be expressly put under the su-
pervislon of the interstate commerce
commission or some similar body so
far rs rates and agreements practical.
" affecting rates ere concerned. A re-
bate in icing charges or In hsEeage OK In