The Washington times., 1905-12-05
FULL TEXT OF PRESIDENTS MESSAGE

subjects without sovereign. neither
any State government nor the National
Government having effective control
over them.
our steady aim should be by legisla-
ton, cautiously and carefully under
taken. but resolutely persevered in, to
assert the sovereignty of the National
Government by Affirmative action.
This is only in form an innovation. In
substance IL is merely a restoration;
for from the earliest time such regu-
lation of Industrial activities has been
recognized In the action of the law
making bodies; and all that I propose
is 10 meet the changed conditions in
such manner as will prevent the Com
monwealth abdicating the power IT has
always possessed. not only I'm this
country. but also I'm England before and
since this country became a separate
nation
1t has been a misfortune that the
national laws on this subject have
hitherto been of negative or prohibi-
tive rather than an affirmative kind,
and still more that they have in part
sought to prohibit what could not be
effectively prohibited. and have I'm part
In their prohibitions confounded what
should be allowed and what should
not be allowed
It Is generally useless TO try to pro-
hibit all restraint on competition
whether this restraint be reasonable or
unreasonable and where it In not use
less It Is generally hurtful.
: Events have shown that IT is not
possible adequately to secure the en-
forcement of any law or this kind by
incessant appeal To the courts The
Department Of Justice has for the last
four years devoted more attention to
the enforcement or the antitrust legis-
lation than 10 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 in
sufficient beneficial result In the way
Of economic change The successful
prosecution of Cne device 10 evade the
law Immediately develops another de-
vice TO accomplish the same purpose.
Adequate Supervision.
What is needed is not sweeping pro
htbttion of every arrangement, good
or bad, which may tend to restrict COM
and regulation as viii prevent any re-
strtction Of competition from being to
the detriment of the pubLc-as well
as such supervision and regulation as
VIII prevent other abuses in no way
connected with restriction OF competi-
tion-
or these abuses. perhaps the chief,
although by no means the only one.
* apitalization-- generally itself
the, result OF dishonest promotion-be-
cause OF the myriad evils IL brings In
fits train: for such overcapitalization
often means an imitation that invites
business panic; Il always conceals the
true relation of the profit earned to
the capital actually invested. and 1t
creates a burden Of interest payments
which is a fertile cause Of improper
reduction in or Limitation OF wages; Il
damages the small investor. discouraRes
thrift. and encourages gambling and
speculation; while perhaps worst Of all
is the trickiness and dishonesty which
Il inplies-fOr harm 10 morals is worse
than any possible harm 10 material in
/ terests. and the debauchery Of politics
and business by great dishonest cor
Rora tiOns is far worse than any actual
material evil they do the puj,sc.
Until the National Government OBJ
tafns. In some manner which the wis
dom of the Congress may suggest
proper control over the big corpora
tions engaged in Interstate commerce
that is, over the great majority Of
! the big cOrporatons-ft VIII be i'm
possible TO deal adequately with these
evils
l am well aware of the difficulties OF
the legislation that / am suggesting
| and Of the need of temperate and
cautious action I'm securing it I should
emphatically protest against improperlv
radical or hasty action. The first thing
to do IS TO deal with the great corpora
tions engaged in the business OF inter
state transportation.
As / said In my message OF Decem-
/ Der last, the immediate and most
pressing need, so far as legislation is
concerned, is the enactment into Law,
| Of some scheme TO secure TO the agents
Of the Government such supervision and
regulation Ct the rates charged by the
railroads of the country engaged in in
terstate traffic as shall summariIy and
effectively prevent the imposition Of un-
just or unreasonable rates
IT must include putting a comulete
form. This power to regulate rates
like all similar powers over the bust
mes world, should be exercised with
moderation, caution, and self-restraint:
but it should exist, so that 1t can be ef
fectively exercised when the need
arises.
Administrative Body Needed.
The first consideration to be kept i'm
mind is that the power should be a affirm
atiye and should be given to some ad-
ministratiVe body created by the Con-
gress II given TO the present Interstate
Commerce Commission ar 10 a reorRan-
lied Interstate Commerce Commission
such commission should be made un-
equivocally administrative. I do not be
Iieve in the Government interfering with
private business more than is necessary.
] do not believe In the Government un-
dertaking any work which can with
prOpriety be left in private hands. But
neither DO / believe in the Government
finching from overseeing any work
when it becomes evident that abuses are
sure TO obtain therein unless there is