Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1905-12-05

has been delivered to congress open
ing with a plea for the cooperation OF
ali classes in continuing the countrys
nrosperity and I'm correcting existing
OWLS for square deal" for every
ihodv the message first takes up the
ouestion Of corporations and railroad
rate LEGISLATION. The president says:
Corporations.
am i'm no sense hostile to corpora
1ions. This is an age of combination
and any effort to prevent all comolna-
zion Will be not only useless, hut In the
and vicious. because Of the contempt
for law which the failure to enforce
law inevitably produces. The corpora
zion has come to stay just as the
trades union has come to stay. Each
can do and has done great good. Each
should be favored so long ~ 1t does
good. But each should he Sharply
checked where 1t acts against law ana
justice.
Experience has shown conclusiyely
that il Is useless TO try TO get any ade-
ouate regulation and supervision OF
these great corporations by state &C
tion Such regulation and supervision
can only be effectively exercised by
sovereign whose jurisdiction Is cock
tensiye with the field work OF the cor
tporations-that is. by the national gov
ernment. | believe that this regulation
aud supervision can be obtained by he
enactment of law by the congress. III
this proves impossible it Will certainly
be necessary ultimately 10 confer IA
fullest form such power upon the ma
tional government by affirmative ac-
ment Of the constitution.
The laws Of the congress and OF the
several states hitherto, as passed upon
by the courts. have resulted more often
lin showing that the states have no
power I'm the matter than that the ma
tional government has power; so thst
there at present exists very unfortu-
NATE condition Of things. under which
these great corporations doing an In
terstate business occupy the position OF
subjects without a sovereign, neither
any state government nor the national
government having effective control
over them. Our steady aim should be
by legislation. cautiously and carefully
undertaken. but resOlutely persevered
in. 70 assert the sovereignty Of the ma
tional government by affirmative ac-
tion.
This is only IN form an innovation.
In substance IL is merely restoration,
for from the earliest time such reguls-
ton Of industrial activities has been
recognized in the action Of the law
making bodies, and all that l propose
is TO meet the changed conditions In
such manner as will prevent the com
monwealth abdicating the power 1t has
always possessed. not only in this coun-
try. but also in England before and
since this country became a separate
nation.
Railroad Rate Legislation.
As | said in my message Of Dec. o
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 regu-
Iaffgn OF the rates charged by the rail-
roads Of the country engaged In inter
state traffic as shall summary and Ell
fectlvely prevent the imposition Of I'M
lust or unreasonable rates. 1t must
Include putting a complete stop 10 re-
bates in every shape and form. This
power to regulate rates. like all similar
powers over the business world. should
be exercised with moderation. caution
and self restraint, but 1t should exist,
SO that 1t can be effectively exercised
when the need arises.
In my Judgment, the most important
provision which such law should CON
tain is that comforting upon some com
petent administrative body the power
TO decide upon the case being brought
before 1t whether given rate pre-
scribed by a railroad Is reasonable and
just, and If 1t Is found to be unreason-
able and unjust then, after full investl-
cation of the complaint. to prescribe
the limit of rate beyond which IL shall
not be lawful to gO-the maximum
reasonable rate, as it is commonly call
ed-this decision to go into effect with
I'm a reasonable time and to obtain
from thence onward. subject TO review
by the courts.
1t sometimes happens at present, not
that a rate is too high. but that ia
xyoroI obinnpr "a Oivpn ton low n rate.
In such case the commission would
have the right to fix this already estab-
llshed minimum rate as the maximum,
and it would need only one or two such
decisions by the commission to cure
railroad companies Of the practice OF
giving improper minimum rates call
your attention TO the fact that my pro-
posal Is not to give the commission
power to initiate or originate rates gen
orally, but TO regulate a rate already
fixed or originated by the roads upon
complaint and after investigation. =
heavy penalty should be exacted from
any corporation which fails TO respect
an order of the commission. ! regard
this power 10 establish a maximum
rate az being essential TO any scheme
OF real reform IN the matter Of railway
regulation.
1t is worth while considering whether
nj would not be wise TO confer on the
government the right Of civil action
against The beneficiary Of rebate for
at least twice the value OF the rebate.