The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1905-12-16


fly OF the nation. The close relation
ship aud mutual dependence upon
each other OF capital and labor are
pointed out, and the message con
ltinues:
Corporations.
Yet while not merely admitting but In
sisting upon this. Il Is also tue that
where there Is no governmental restraint
or supervision some OF the exceptional
men use their energies not In ways that
are for tho common good. but In ways
which tell against this common good.
The fortunes amasscd through corporate
organization are now so large and vest
such power In those that WELD them. as
TO make IL a matter OF necessity 10 give
ment. which represents the people as
wholesome effective power OF supervis-
Ion ever their corporate use. In order 70
Insure healthy social and Industrial lie,
every big corporation should be held re-
sponsible by, and be accountable to- some
sovereign strong enough 70 control ils
conduct. l am IN no sense hostile TO cor
porations. This is an age OF combination.
and any EFFORT 10 prevent all combina-
end vicious. because OF the contempt for
law which the failure to enforce law In
evitably produces. We should. moreover,
immense good effected by corporate
ssgeneies, IN 2 country such as ours oa ana
hs S wsaith o, Intellect ensrgy and ,h hde.
fore normally TO the service OF the public.
by their officers and directors. The COR
trade union has come 20 stay. Each can
40 and has done great good. Each should
be favored so long as Il does good. But
acts against law and justice.
The President shows the impossi-
,bility OF the individual states deal
ing successfully with corporation
greed. and the necessity OF comforting
power upon the general government
even 10 the extent Of proper amend
msnt TO the constitution. He says:
II has been a misfortune that the
national laws on this subject have hither-
20 been OF a negative or prohibitive rather
than an Affirmative kind, and still more
that they have In part sought 20 pro-
hiblt what could not be effectively pro-
h hiisS,sd and 9syS y part IN theta heir pro-
allowed and what should not be allowed
II IL generally useless 10 try TO prohibit
all restraint on competition, whether this
restraint be reasonable or unreasonable;
ana where IL Is not useless IL -
generally hurtfui Events have shown
secure the enforcement Of any law OF this
KIND by inoessant appeal 10 the courts
last four years devoted more attention
90 the enforcement 81 the antitrust legis.
iation than 10 anything else. Much has
mas been The moral elfect Of the pro t'
tions: but II Is Increasingly evident that
Nnsne , WIZ re very insnilclent behenolei
The successful prosecution OF one device
90 eyade the law Immediately develops
another device TO accomplish the same
purpose What IL needed Is not sweeping
prohibition OF every arrangement. good or
bad. which may tend 20 restrict eompeti.
ton. but such adequate supervision and
regulation as viii prevent any restriction
Of competition from being 70 the detIi-
supervision and regulation as will pre-.
vent other abuses In way connected
with restriction ~ competition. OF these
abuses. perhaps the chief. although by
no means the only one. Is overcapitallza-
tion-generaliy itself the result OF dis.
honest promotlon-hc because OF the myriad
evils II brings IN its train; for such over
capitalization often means an imitation
that invites business panic; II always con.
ccals the true relation Of the profit earned
90 the actual capital Invested. and ~
creates burden Of interest payments
duction or IN limitation OF wages. u
damages the small Investor, discoufaees
thrift and encourages gambling and spoc-
ulation. while perhaps worst 81 all Is tho
trickiness and dishonesty which II implies
for harm 70 morals and worse than any
possible harm 10 material interests. and
the debauchCry OF politics and business
by great dishonest corporations Is far
worse than any actual material evil they
90 the pupnc' lhtl me nallohal toke I'm.
ment obtains IN some manner which the
wisdom Of the Congress may suggest.
proper control over the big corporations
engaged Ia interstate commerce that 10.
over the great majority OF the big cor
porations-it viii be impossible TO deal
adequately with these evils.
| am well aware 81 the difficulties OF
the legislation that am suggesting and
or the need OF temperate and cautious
action IN securing " should emphatic
hasty action The nrsi thing To do is
90 deal with the great corporations en-
gagged IN the business ~ interstate trans.
"a 1 la m
Dec last, the immediate and most
pressing need. so far Ms legislation II
concerned. IN the enactment Into law OF
some scheme 60 secure To the agents ot
the government such supervision ana
regulation OF the rates charged by the
fn ilroads Of the country engaged In Inter
state traffo shall simmafny ana
effectively prevent the imposition ~ un-
just or unreasonable rates u must IN
clude putting n complete stop 10 reha e.
I'm every shape and form. This power To
regulate rates. like all similar powers
over the business world. should he exer
ciscd with moderation, caution. and self
restraint. but u should exist 40 that "
can be effectively exercised when the
need arises.
The nrst consideration 20 be kept In
mind Is that the power should be affirm
ative and should he given 10 some al.
rninistratlye body created by the Congress
N given 10 the present Interstate Com
mercs commission OF IN feofganizcd
Interstate Commercs commission such
commission should be made uneauivocalb
administrative. I do not believe In the
government interfering Win private bual-
ness more than ts necessary I do not
believe tn the government undertaking
any work which can with propriety bc
left IN private hands Rut neither DO
believe IN the government ninching from
overseeing any work when u becomes
evident that abuses nre sure TO obtain
therein unless there IL governmental
supervision. 10 Is not my province "a
Indicate the exact terms or the law which
afould be enacted hut call the attention
o. the Congress 10 certain existing con
ditions with which ~ IL desirable to deal
In my Judgment the most important pro
vision which such law should contain
a. that comforting upon same competent
administrative body the power to decide.
Fpon the case being brought before "a
whether n given rate prescribed by rail-.
road Is reasonable and lust. and N II Il
found 20 be unreasonable and unjust.
then after FUN Investigation Of tho com .
plalnt 10 prescribe the limit OF rate
beyond which u shall not be lawful TO 60
the maximum reasonable rate. as II IL
commonly cnlled-thls decision 10 go into
eject within reasonable time and %
obtain from thenca onward. subject "a
review BY the courts II sometimes hap
mems NJ present. not that n rate n too
high hut that a favored shipper II given
Too low a rate In such case the commits
sion would have the right TO M this
already established minimum rate a.
the maximum and q would need
only one or two such decisions
BY the commission 20 cure railroad com