The Tupelo journal., 1905-12-08
Would Materially Increase the
Powers of Interstate Com
merce Commission.
LIFE INSURANCE QUESTION
Sees Good and Evil in Labor Unions
Asks for Immediate Approprl-
atoms for Panama Canal, n
Promises Report of Board OF En-
pineers and Recommendations
Later---Other Matters.


washington. Dec. 5.-The annual mes
sage of President Roosevelt was read III
both houses of congress to-day. ii Is u
ument of some 24.o words, ana con.
tains recommendations for much iInpoi'~h'
legislation.
The subject of federal supervision Oh cor
variations. and especially railroad corpora
eions is the first subject treated OF by the
nresident. and to it he gives the greatest
amount of attention. After speaking OF the
general prosperity of the country anu tno
nover of the corporations Tor soou l w
in connection with the nation prospeiN''
he says: r
CO long as the finances or the naton
y kent upon an honest basis, no otneL
question of internal economy. with which
the congress has the power TO oeal pesihs
10 approach in Importance the Ihal'ei u
eudeavoring to secure proper
conditions under which the individuals
and especially the great corporations
doing an interstate business are 10 act
N.Y. makars of our national constitution
Drovided especially that the reguiatloh
IF Interstate should com Win
in the sphere of the general government.
The in favor of their taxing
+his stand were even then overWhelmlns.
Rut they are far stronger to-day, IN view
OIL the tIOIiflOuS
business agencies, usually corporate IN
form. Experience has shown conclusive
Nv that it is useless to try 10 get any
adequate regulation and SUPERVISION OIL
these great corporations by state actlon'
Such regulation and supervision can only
be effectively exercised by a sovereign
whose Jurisdiction is coextenslve with the
field of work of the corporations-that is,
by the national government. L belleVe
that this regulation and supervision can
be obtained by the enactment of law by
the congress. If this proves Impossible,
it will certainly be necessary ultimately
to confer in fullest form such power upon
the national government by a proper
amendment of the constitution. 1t would
obviously be unwise to endeavor to secure
such an amendment until it is certain
that the result cannot be obtained under
the constitution as it now is. 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 nc power in the matter
thar that the national government has
power; so that there at present exists
q very unfortunate condition of things.
under which these great corporations do
ing an interstate business occupy the po-
sition of subjects without a sovereign.
neither any state government nor the ma
tional government having effective con-
troll over them. Our steady aim should
be by legislation, cautiously and care
fully undertaken, but resolutely per-
severed in, to assert the sovereignty of
the national government by affirmative
action.
This Is only in form an innovation. In
substance 1t is merely a restoration; for
from the earliest time such regulation
of Industrial activities has been recog-
nized In the action of the law-making
bodies; and all that I propose is to meet
the changed conditions IN c,yrb papre
as will prevent the commonwealth abdi-
eating the power it has always possessed,
not only in this country, but also In
England before and since this country
became a separate nation.
present Laws Inadequate.
1t has been a misfortune that the ma
tional laws on this subject have hitherto
been of a negative or prohibitive rather
than an affirmative kind, and still more
that they have in part sought to prohibit
what could not be effectively prohibited.
and have in part in their prohibitions
c~onfounded should be allowed and
h should not be allowed. 1t is gem
orally useless to try to prohibit all re-
etraint on competition, whether this re-
etraint be reasonable or unreasonable:
and where 1t is not useless 1t is gener-
ally hurtful. Events have shown that it
is not possible adequately to secure the
enforcement of any law of this kind by
tncessart appeal to the courts. The de-
partmeht Of justice has for the last four
years devoted more attention to the en-
force1nent of the antitrust legisla ton
than to anything else. Much has been
accomplished; particularly marked has
been the moral effect of the prosecutions.
but it Is increasingly evident that there
will be a very insufficient beneficial re-
suit in the way of economic change. The
successful prosecution of one device to
---I1 &t4- ry nrnodiof oIxy dauaIono ~
other device to accomplish the same pur-
Nose What Is needed Is not sweeping
prohibition of every arrangement, good
or bad, which may tend to restrict COM
netition. but such adequate supervision
and regulation as will prevent any re-
striction of competition from being to
fhe detriment of the public-as well as
such supervision and regulation as will
mreyent other abuses in no way connected
with restriction of competition. OF these
abuses, perhaps the chief, although by
no means the only one. is overcapitaliza-
fion-generally itself the result of dishon-
est ACKNOWLEDGEMENTS of the myriad
evils it brings in its train; for such over
Capitalization often means an initiation
that invites business panic; it 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 re-
nucIlOH III u Va Wo5Oot ~
damages the small investor, discourages
thrift, and encourages gambling and
speculation; while perhaps worst of all
is the thickness and dishonesty which it
1mplies-for harm to morals is worse than
any possible harm to material interests,
and the debauchery of politics and bust
ness by great dishonest corporations is
far worse than any actual material evil
they do the public. Until the national
government obtains, in some manner
which the wisdom of the congress may
suggest, proper control over the big cor
porations engaged in interstate commerce
that is, over the great majority of the
big corporations-it will be impossible to
deal adequately with these evils.
Railroad Rate Regulation.
I am well aware of the difficulties
of the legislation that I am suggest
ing, and of the need OF temperate and
cautious action in securing 1t. i 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 I said
in my message of December 6 last, the
Immediate and most pressing need. 50