The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-05

fective control over them. Our steady
aim should be by legislation. cautiously
and carefully undertaken, but resOlutely
persevered In, TO assert the sovereignty
Of the national government BY aifirma-
tive action.
INNOVATION IN FORM ONLY.
This is only IN form an innovation Tn
substance it is merely a rostoration for
from the ealiest time such regulation OF
Industrial activities has been recognized
in the action OF the law-making bodies;
and all that l propose Is 10 meet the
changed conditions In such manner as
viii prevent the commonwealth abdicat-
ing the power II has always possessed.
not only In this country but also in Eng
land before and since this country be-
came a separate nation.
IL has been misfortune that the ma
tionAl laws on this subject have hitherto
been OF a negative or DrohibiuNc rather
than an affirmative kind. and stlll more
that they have In part sought 10 prQhiblt
what could not be effectively prohibited.
and have I'm part In their prohibition con
founded what should be allowed and what
should not be allowed II Is generally
useless TO try 10 prohibit all restraint on
petiton, whether this restraint be
res ssonable or unreasonable. and where
n - not useless ~ is generally hurtful.
Events have shown that n Is not pOssi-
BILE adequately 60 secure the enforcement
II any law Of this kind by inccssant ap-
peal 20 the courts. The department OF JUS
tice has for the last four years devoted
more attention 10 the enforcement OF the
antitrust legislation than 10 anything
else Much has been accomplished; par
ticularly marked has been the moral Of
feet Of the prosecutions. but II is lncreas-
ingy evident that there will be q very
insufficient beneficial result in the way
OF economic change The successful
law immediatel develops another device
20 accomplish the same purpose. What
is needed IS not sweeping prohibition ot
every Arrangement good or bad. which
NAV tend TO restrict competition but such
adequate supervision and regulation as
Will prevent any restriction or compeu-
ton from being 10 the detriment or the
public-as well as such supervision ana
regulation a. Will prevent other abuses
I'm no way connected with restriction or
competition.
THE CHIEF ABUSE.
OF these abuses, perhaps the chief, al
though by no means the only one. Is over
equalization generally Itself the result
OF dishonest promouon-becaus or the
myriad evils IL brings I'm its train. for
such .overCap pitalization often means an
imitation that invites business panic; IL
always conceBls the true relation or the
profit earned TO the capital actually IN
vested. and II creates a burden or Inter
est payments which Is a fertile cause or
improper reduction IN or Limitation or
wages, tu danI5ggs TnU small investor
discourages thrift. and encourages gamb-
ling and speculation: while perhaps worst
Of all IS the tTiokuess and dishonesty
worse than any possible harm To aterial
interests, and the debauChery Of politics
and business by great dishonest corpora
tons IL far worse than any actusi mate
rial evil they do the public. Until the ma
tional government obtains, IN some man
nor which the wisdom OF the congress
may suggest. proper control over the DIE
corporations engaged in Interstate com.
merce-that IS over the great majority OF
the big corporaticns-it VIII be Impossible
TO deal Adequately with these evils.
tho legislation that I am suggesting, and
of the need OF temperate and cautious ac-
ton in securing IL. I should emphatcal-
ly protest against improperly radical or
ha.ty action The first thing to do is 20
deal with the great corporations engaged
in the business OF interstate tTHnsporta.
ton. AS said in my message OF DeS; 90 .
need go far as legislation is concerned
ia the enactment into law OF come scheme
70 secure 10 the agents OF the government
rates charged by the railroads OF the
country engaged in interstate traffic as
shall summsrily and effectively prevent
the imposition of unjust or unreasonaole
II must include putting complete stop
td rebates In every shape and form; 1his
power to regulate rates IKE ,d sii sltmllT sbnuld
Be exercised with moderation, caution.
nnd self-restraint; but II should exist, SO
that II can be effectively exercised when
the need arises.
AFFIRMATIVE POWER NEEDED.
The first consideration 20 be kept In
mind Is that the power should be affirm
ative and should be given 20 some admin
istrative body created by the congress.
II given 10 the present Interstate Com
merce commission or TO reorganized
Interstate Commerce commission. suoh
commission should be made uneQuivocally
administration ] do not believe In the
sovernmest interfering with private busi-
ness more than is necessary. do not
believe I'm the government undeftaklnS
any work which can with propriety be
left ia private hands. But neither DO
befteve IN ti7e government hihefhng from
overseeing any work when Il becomes evi-
dent that abuses are sure to obtain there
I'm unless there Is governmental supre-
vision.
1t is not my province 20 INDICATE the
exact terms OF the Nw which should pe
enacted but ! call the attenuon 2t ,e tne
with which II Is desirable 70 deal. IN my
judgment the most important provision
which such law should contain is that
eonferrtnS upon some competeht aoirln- lllI-
istrntive body the power 70 decide, upon
the case being brought before IL whether
a given rate prescribed by q railroad Is
reasonable and Just. and N Il ~ found TO
be unreasonabe and unjust, then, after
fun investigation of the complnint, 70 pre-
scribe the limit OF rate beyond which II
shall not be lawful 10 gc-the maxi
mum reasonable rate, as " Is commonly
called-this decision 20 10 into erect with
In a reasonable time and TO obtain from
thence onward, subject TO review by the
courts.
II sometimes happens AZ present. not
that a rate Is too high but that taVored
shipper is given too low n rate, In suoh
ca sc the commission would have the right
TO FIX this already established minimum
rate as the maximum end u would need
only one or two such decisions by the
Commission 70 cure railroad compa MES OF
the practice OF giving Improper minimum
rates I call your attention 70 tho fact
that my proposal is not 70 give the com
mission power to initiate or originate
rates generally. but to regulate a rate
already fixed or originated by the roads,
upon complaint and after investigation.
A heavy penalty should be exacted from
any corporation which fails 20 respect an
order OF the commission. regard THIS
power to establish u ma Nimum rate as
being essential 20 any scheme or real re-
form IN the matter or railway regulation
The first necessity is 90 secure 10; ana
unless IL IL granted 20 the commission
there ls little use IN touching tho subject
at all.
uNDER FORMS OF LAW.