The Miller sun. (Miller, Hand County, S.D.) 190?-19??, 1905-12-13
Presidents Annual Commune
cation Delivered to Congress
at Washington.
STRONG FOR RATE REFORM
Makes Many Suggestions, but This Is
the Chief One-Would Supervise
Insurance-Not Ripe for
Tariff Reform.

a lCli6lDy OAl VI liz NhoA <c'NNN
words. 1t breathes reform from first
TO last. Chief and foremost is the
demand for rate legislation which he
goes into in great detail. He also rec
ognizes the insurance evils and urges
federal supervision of insurance and
OF other great corporations. He falls
TO recommend revision OF the tariff,
saying It Is not required as yet. His
message in part follows:
To the senate and house OF representa-
tives:
The people of this country continue to
enjoy great prosperity. Undoubtedly there
will be ebb and flow In such prosperity,
and this ebb and flow Will be felt more or
less by all members OF the community,
both by the deserving and the undeserving.
Against the wrath OF the Lord the wisdom
of man can not avail; In times OF flood or
drought human ingenuity can but partially
repair the disaster. A general failure or
crops would hurt all Of US. Again, IL the
folly OF man mars the general well-being,
then those who are innocent OF the folly
will have to pay part of the penalty In
Cured by those who are guilty OF the folly.
A panic brought on by tho speculative folly
OF part of the business community would
hurt the whole business community. But
such stoppage of welfare, though 1t might
be severe, would not be lasting. In the
long run the one vital factor In the perma-
nent prosperity of the country Is the high
Individual character OF the average Amer
ican worker, the average American citizen.
no matter whether his work be mental or
hihiiudis WhtlItl hb, 10 AiVi - W"6S-
worker, business man or professional man.
Control of Corporations.
The fortunes amassed through corporate
organization are now so large, and vest
such power In those that WELD them, as 10
make II a matter OF necessity TO give 10
the s~overeign-that is, to the government.
which represents the people as a whole
some effective power of supervision over
their corporate use. In order TO insure a
healthy social and Industrial life, every
big corporation should be held responsible
by, and be accountable to, some sovereign
strong enough TO control its conduct. | am
In no sense hostile TO corporations. This
is an age OF combination, and any effort
20 prevent all combination will be not only
useless, but In the end vicious, because of
the contempt for law which the failure to
enforce law inevitably produces. The cor
poration has come to stay, just as the
trade union has come to stay. Each can
do and has done great good. Each should
be favored so long as 1t does good. But
each should be sharply checked where 1t
acts against law and justice.
State Legislation Impotent.
Experience has shown conclusively that
It Is useless TO try to get any adequate
regulation and supervision OF these great
corporations by state action. Such regu-
lation and supervision can only be effec-
lively exercised by a sovereign whose
jurisdiction Is co extensive with the field of
work OF the corporation-that is, by the
regulation and supervision car be obtained
by the enactment of law by the congress.
IL 1t proves impossible, 1t will certainly be
necessary ultimately to confer In fullest
form such power upon the national govern
ment by a proper of the con-
~etitution. Il would obviously be unwise to
endgavor to secure such an amendment
until II Is certain that the result can not
be obtained under the constitution as It
now is.
What is needed is not sweeping prohibit
tion OF every arrangement, good or bad,
which may tend to restrict competition,
put such adequate supervision and regu-
lation as will prevent any restriction OF
competition from being to the detriment Of
the publfc-as we'll as such supervision and
regulation as will prevent other abuses in
no way connected with restriction OF COM
petition.
Abuse Of Over-C capitalization.
OF these abuses, perhaps the chief. al
though by no means the only one, is over
OBSERVATION-DISCLOSURES itself the result
or dishonest OBSERVATION-DISCLOSURES of the
myriad evils 1t brings in It's train; for such
oyercapitalizaton often means an imitation
that invites business panic; 1t always con-
ceals the true relation OF the profit earned
TO the capital actually invested, and IL
creates a burden of interest payments
witch il a fertile cause or improper reduc-
ton In or Limitation of wages: it damages
the small investor, discourages thrift, and
encourages gambling and speculation;
while perhaps worst OF all is the thickness
and dishonesty which 1t implies-for harm
10 morals is worse than any possible harm
TO material interests. and the debauchery
or politics and business by great dishonest
corporations Is far worse than any actual
material evil they do the public.
Railroad Rate Legislation.
The first thing to do Is to deal with the
great corporations engaged in the bust
ness OF Interstate transportation. AS L
said In my message OF December 6 last, the
immediate and most pressing need, so far
as legislation Is concerned. is the enact
ment into law OF some scheme to secure
TO the agents OF the government such SUI
pervision and regulation OF the rates
charged DX tho railroads IF thu rnppfwrr
engaged I'm Interstate traffic as shall sum
marily. and effectively prevent the IMPOSE
ton OF unjust or unreasonable rates. 1t
must include putting a complete stop TO
rebates In every shape and form. This
power to regulate rates. Ike all similar
powers over the business world, should be
exercised with moderation, caution. and
self restraint; but 1t should exist, SO that
It can be effectively exercised when the
need arises.
Commission Must Be Administrative
The first consideration to be kept in
mind Is That the power should be affima-
tive and should be gwen TO some adminis-
trative body created by the congress. II
given to the present Interstate Commerce
commission or to a r~eorganized Interstate
Commerce commissitn. such commission
should be made uneQuivocally administra-
tive.
Suggests the Terms.
IL Is not my province to indicate the ex-
act terms OF the law which should be en-
acted; but l call the attention of the con-
0hecs ~ e~,eeh SAioehhS SouuitiOus Will
which Ii Is desirable to deal. In my iudg-
ment the most important provision which
such law should contain is that comforting
upon some competent administrative body
the power to decide. upon the case being
brought before II. whether a given rate
prescribed by q railroad Is reasonable and
just, and IL Ii Is found to be unreasonable
and unjust, then. after full Investigation
OF the complaint. to prescribe the limit
OF the rate beyond which 1t shall not be
1aWrul 10 go-tne maxsmCm reasonable
rate. as II II commonly called-this de-