Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1905-12-07

Washington, Dec. 6.-The annual mes
sage OF President Roosevelt was read III
both houses of congress to-day. ltis uoe-
ument OF some 1900 words. ana con.
tains recommendations for much Important
legislation.
The subject OF federal supervision OF cor
poratIons ard especially railroad corpora
lions. is the first subject treated oil py the
president. and to Il he gives the greatest
amount OF attention. After speaking OF the
general prosperity OF the country. ahd tne
mower OF the corporations for COCO OF eNI'
in connection with the nations prosperity
he says: ala,
So long as the finances OF the nation
are kept upon an honest basis no o.nv.
question OF internal economy Win VIZ,
the congress has the power to deal pegIis
40 onproach In importance the matter OF
endeayorlng 10 secure proper Industrial
conditions under which the ird!viduaIs-
and especially the great corporations
doing an interstate business are 10 ACT
The makers OF our national CONSTITUTION
provided especially that the regulation
of Interstate commerce should come Win
I'm the sphere OF the general government.
The arguments in favor OF their taxing
this stand were even then overwhelming
But they are far stronger to-day, In view
OF the enormous development OF great
business agencies. usually corporate IN
form. Experience has shown conclusive
~ that II Is useless to try to get any
adequate regulation and supervision OF
these great corporations by state action
Such regulation and supervision can only
be effectively exercised by sovereign
whose Jurisdiction is coextens!ve with the
field Of work of the corporations-that Is.
by the national government. believe
that this regulation and supervision can
be obtained by the enactment of law by
the congress. II this proves impossible,
Il will certainly be necessary ultimately
TO confer In fullest form such power upon
the national government by a proper
amendment of the constitution. II would
obviously be unwise TO endeavor to secure
such an amendment until 1t is certain
that the result cannot be obtained under
the constitution as II 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 no power in the matter
than 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-
sitlon 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.
Present Laws Inadequate.
II has been a misfortune that the ma
tional laws on this subject have hitherto
been OF 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
COMPOUNDED what should be allowed and
what should not be allowed. 1t is gen.
orally useless to try to prohibit all re-
straint on competition. whether this re-
stralnt be reasonable or unreasonable:
and where II is not useless II Is Rener.
ally hurtful. Events have shown that II
is not possible adequately to secure the
enforcement OF any law Of this kind by
incessant appeal to the courts. The de-
partmeht Of Justice has for the last four
yesre devoted more attention to the en-
forceinent OF the antitrust legislation
than to anything else. Much has been
accomplished: particularly marked has
been the moral effect OF the prosecutions:
but II Is increasingly evident that there
will be very insufficient beneficial re-
suit in the way OF economic change. The
successful prosecution Of one device to
evade the law Immediately develops an
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
petition, but such adequate supervision
and regulation as will prevent any re-
striction of competition from being to
the detriment OF the pubiic-as well as
such supervision and regulation as win
prevent 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-
tion-generally itself the result Of dishon-
est promotion-because OF the myriad
evils Il brings in its train: for such over
capitalization often means an imitation
that invites business panic; II always con-
ceals the true relation Of the profit earned
20 the capital actually invested. and II
creates q burden Of interest payments
which IN a fertile cause Of improper re-
duction in or limitation OF wages; II
damages the small investor. dlscourages'
thrift, and encourages gambling and
speculation; while perhaps worst OF al
Is the thickness and dishonesty which It
implles-for harm to morals Is worse than
any possible harm to material interests.
and the debauchery OF politics and busi-
ness by great dishonest corporations IL
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-lt will be impossible 70
deal adequately with these evils.
Railroad Rate Regulation.
am well aware OF the dlhiculties
of this legislation that am suggest