Durango semi-weekly herald., 1905-12-07

| 1
makers OF our national constitution
provided especially that the regulation
OF Interstate commerce should com,
within the sphere of the general gov
ernment. The arguments in favor o
their taking this stand were even thet
overwhelming. But they are fal
stronger today, in view of the enor
nous development Of great business
agencies, usually corporate in form
| Experience has shown conclusively
that 1t is useless TO try to get any ade-
quate regulation and superv ision OF
| these great corporations by state ac.
tion. Such regulation and supervision
can only be effectively exercised by a
! sovereign whose jurisdiction is CO.
| extensive with the field of work of the
| corporations-that is, by the national
government. | believe that this regu-
lation and supervision can be obtained
by the enactment OF law by the Con-
gress. If this proves impossible it
viii certainly be necessary ultimately
TO confer in fullest form such power
upon the national government by a
proper amendment OF the constitu-
ton. 1t would obviously be unwise to
secure such an amendment until it is
certain that the result can not be oh
'ained under the constitution as it
now Is. The laws of the Congress
and OF the several states hitherto. as
passed upon by the courts. have re-
suited more often in showing that the
states have no power In The matter
than that the national government
mas power so that there at present
of things, under which these great
corporations doing an Interstate busi.
ness occupy the position OF subjects
without sovereign. neither any state
government nor the national govern.
ment having effective control over
them. Our steady aim should be by
legislation, cautiously and carefully
undertaken, but resolntely persevered
in. to assert the sovereignty Of the
national government by affirmative
action.
Tbs is only in form an innovation.
In substance it is merely a restora,
tiou; for from the earliest time such
regulation Of industrial activities has
been recognized in the action OF the
law-making bodies; and all that | pro-
pose is to meet the changed condi-
tions in such manner as win prevent
the commonwealth abdicating the
power il has always possessed, not
only in this country. but also in Eng
land before and since this country be
came a separate nation. -
1t has been misfortune that the
nasieDa' lsrs on t,ss subiect nave
hitherto been of negative or prohib-
tive rather than an affirmative kind,
and still more that they llaye in part
In their prohibitions confountled What
should be allowed and what should
not be allowed. 1t Is generally use
less to try to prohibit all restraint on
whether this restraint be
or unreasonable: and
where 1t is not useless ii is generally
hurtful. Events have shown tnat 1t
is not possible to adequately secure
kind by incessant appeal to the courts.
The department of Justice has fo, the
last four years devoted more attention
10 the enforcement of the antitrust
legislation than to anything else. Much
has been accomplished; particularly
the prosecutions; but 1t is increasingly
evident that there will be very in
sufficient result in the waysof econom-
ic change. The successful prosecu-
lion of one device to. svade. the law
develops another device
10 accomplish the same purpose. What
Is needed. is not sweeping prohibition
oi every arrangement, good or BAD,
which may tend to restrict comDeGi-
tion, but such adequate supervision
and regulation as VIII prevent any re-
strictiOn of competition from neing
to the detriment CT the public--as well
as such supervision and regulation as
will prevent other abuses In no way
connected with restriction Of cOmpe.
tition. OF these abuses, perhaps the
chief. although by no means the only
one, is. oyercapitalizationG generally
Itself the result OF dishonest promo
tion-because of the myriad evils 1t
brings in its train: for such overcaI-
italization often conceals the true re-
lation Of the profit earned 10 the cap
ital actually invested, and it creates
a burden of interest payments which
Is fertile cause of improper retluc--
tion in or lin itation of wages, 1t dana
ages the small investor, discoursges
thrift, and encourages gambling ald
speculation; while perhaps worst of
all is the trickiness and dishonesty
which 1t implies--for harm to morals
is worse than any possible harm 20
material interests, and the debauchery
OF politics and business By great dis.
honest corporations Is far worse than
any actual material evil they do .he
public. Until the national government
obtains, in some manner which the
wisdom OF the congress may suggest.
proper control over the big corpora.
tions engaged Ia interstate commerce
that is, over the great majority of
the big corporations-it will be i'm.
Dosaible to deal adequately with these