The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1905-12-08
THE PRESIDENTS MESSAGE
A Strong Presentation OF the Leading
Questions Demanding Legislation

and ample fashion the immense good
effected by corporate agencies In a
country such as ours, and the wealth
of intellect, energy, and fidelity devot-
ed to their service, and therefore nor
mally to the service Of the public, by
their officers and directors. The cor
poration 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. So long as the finances Of the
Nation are kept upon an honest basis
no other question Of internal economy
with which the Congress has the pow
er to deal begins to approach in i'm
portance the matter Of endeavoring
to secure proper industrial conditions
under which the individuals-and es-
pecially the great corporations-doing
an interstate business are to act. The
makers Of our National Constitution
provided especially that the regulation
Of interstate commerce should come
within the sphere of the General Gov
ernment. The arguments in favor Of
their taking this stand were even
then overwhelming. But they are far
stronger to-day, in view Of the enor-
! nous development of great business
agencies, usually corporate in form.
| Experience has shown conclusively
that 1t IL useless to try to get any
adequate regulation and supervision
Of these great corporations by State
action. Such regulation and supervis-
ion can only be effectively exercised
by sovereign whose jurisdiction is
coextenSive with the field of work Of
the corporations-that is, by the Nat
ional Government.
| am well aware Of the difficulties
Of the legislation that ! am suggest
ing, and of the need Of temperate and
cautious action in securing 1T. ! should
emphatically protest against improp-
erly radical or hasty action. The first
thing to do is to deal with the great
corporations engaged in the business
OF interstate transportation. AS |
said in my Message of December 6
last, the immediate and most pressing
need, SO far as legislation is concern
ed is the enactment into law of some
scheme to secure tO the agents of the
Government such supervision and reg
ulation Of the rates charged by the
railroads of the country engaged in
interstate traffic as shall summarily
and effectively y prevent the imposition
of unjust or unreasonable rates. 1t
must include putting a 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 modi-
iication, caution and self-restraint:
but it should exist, so that it can be
effectively execised when the need
trises.
The first consideration to be kept i'm
mind is that the power should be aflir-
native and should be given to some
administrative body created by the
Congress.
Illegal transactions often occur un-
der the forms of law. 1t has often oc-
CURED that a shipper has been told
by traffic officer To buy large
quantity of some commodity and then
after it has been bought an open re-
duction is made in rate take effect
Immediately, the arrangement result
ing 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 1t clear SO that nobody can fail
to understand that any kind of com
mission paid on freight shipments,
whether in this form or in the form of
fictitious damages, or of concession
a fress pass, reduced passenger rate.
or payment of brokerage, is illegal.
All private-car lines, industrial
roads, refrigerator charges. and the
like should be expressly put under
the supervision of the Interstate Com
merce Commission or some similar
body So far rs rates, and agreements
practically affecting rates, are con-
cerned. The privHe-car owners and
the owners of industrial railroads are
entitled to fair and reasonable com
pensation on their investment, but
neither private ears nor industrial
railroads nor spur tracks should be
utilized as devices for securing prefer
ential rates. A rebate in icing charges.
or In mileage. or in a division of the
rate for refrigerating charges Is inst
as pernicious as rebate in any other
way. No lower rate should apply on
goods imported than actually obtains
on domestic goods from the Ameri-
can seaboard to destination except in
cities where water competition is the
controlling influence. There should
be publicity of the accounts of com
mon carriers: no common carrier en-
gagged in interstate business should
keep any books or memoranda other
than those reported pursuant To law
N..aa IL a.