The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1905-12-07
RAILROAD RATES FIRST TOPIC
Would Materially Increase the
Powers of Interstate COM
merce Commission.
LIFE INSURANCE QUESTION
elees Good and Evil in Labor Unions
ASKS for Immediate Appropri-
ations for Panama Canal, aud
Promises Report Of Board of En-
gineers and Recommendation
Later ---Other Matters.

Later r---other Matters.
Washington, Dec. 5.-The annual mes
sage OF President Roosevelt was read In
both houses of congress to-day. IL Is doc
ument of some A,00O words, and con-
tains recommendation for much important
legislation.
The subject OF federal supervision of cor
porations, and especially railroad corpora
tions, is the first subject treated OF by the
president, and to II he gives the greatest
amount OF attention. After speaking OF the
general prosperity OF the country, and the
power of the corporations for GOOD or eVii
in connection with the nations prosperity
he says:
so long as the finances of the nation
are kept upon an honest basis, no other
question of Internal economy with whlch
the congress has the power TO deal begins
to approach In Importance the matter OF
endeavoring to secure sproper Industrial
conditions under which the individuals
and especially 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 with
in the sphere OF the general government.
The arguments In favor OF their taking
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 IL 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 IA sovereign
whose Jurisdiction is coeXtensivc with the
field OF work OF the corporations-that Is.
by the national government. 1 believe
haf inR md afn aaf
be obtained by the enactment of law by
the congress. II this proves impossible.
II will certainly be necessary ultimately
20 confer In fullest form such power upon
the national government by n proper
amendment OF the constitution. II would
obviously be unwise to endeavor to secure
such an amendment until IL 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 ma liter
than that the national government has
power; so that there at present exists
a very unfortunate condition of things,
under which these great corporations do
ing an Interstate business occupy the po-
sition Of subjects without n 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
fuily undertaken, but resolutely per-
severed In. to assert the sovereignty OF
the national government by affirmative
action
Present Laws Inadequate.
II mas peen misfortune that the ma
uohai laws on thls subject have hitherto
peeh oi u negative or prohibitive rather
than an affirmative kind, and stili more
nh hlt
what couid not be effectively prohibited.
anu nave III part In their prohibitions
cohiounueu "hat should be allowed and
what shouid not be allowed. IL is gem
eIsny useless 10 try To prohibit all re-
STRAIN. on competition. whether this re-
sua'"' DC rehSonapie or unreasonable;
ana where u Is not useless 1t is gener-
any hurtini, Events have shown that Il
no, possipie adequately to secure the
shiorceheht OF any law OF this kind by
Ihcessan! appeal TO the courts. The de-
Par.h'nt OF Justice has for the last four
sss oeso'eu more attention to the en-
iorceineht OF the antitrust legislation
thah 70 ahything else. Much has been
acconphsheu' particularly marked has
peeh .he moral erect or the prosecutions;
put Is increasingly evident that there
VIII De a 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-
pose. What Is needed is not sweeping
prohibition of every arrangement, good
or bad, which may tend to restrict com
petition. bur such adequate supervision
and regulation as win prevent any re-
the detr,ment Of the pubIlc-as vel "a
such superyislon and rcgulatlon as wII
prevent other abuses IN no way connected
with restriction OF competition. or these
abuses, perhaps tne chlei although by
no means the only one - overcaptaliza'
tion-generaliy itseir the result OF dishon-
est promouon-peeau OF the myriad
evils Il brings IN It's tram for such over
capitalization otten means an Imitation
that invites business panic; II always con-
ceals the true relation OF the proht earned
10 the capitol actually invested. and IL
creates burden OF interest payments
which Is fertile cause OF Improper re-
duetlon In or Limitation OF wages; II
damages the small investor, discourages
thrift and encourages gambling and
speculation; while perhaps worst OF all
is the trlckiness and dishonesty which Il
tmplies-for harm TO morals Is worse than
any possible harm to material interests.
and the debaucnery of DOliticS and busl.