New-York tribune., 1907-12-04

does mean that there should be an extension or
tralization It is merely looking facts in the face
ana realizing that Capitalization in business
mas ALREADY come and cannot be avoided or un-
done, and that the public at large can only pro-
tect 1lsef from certain evil effects of this bust
ness Capitalization by providing better methods
1or the exercise of control through the authority
already centralized in the national government
by the Constitution itself. There must be no
htiit IN the healthy constructive course of action
which this nation has elected to pursue, and has
steadily pursued, during the last six years.
shown both in the legislation of the Congress
ana the administration of the law by the De-
partnelt OF Justice. The most vital need is in
connection with the railroads. As to these, in
my judgment there should now be either a ma
uonaI Incorporation act or law licensing railway
companies to engage in interstate commerce
upon certain conditions. The law should be so
framed as TO give to the Interstate Commerce
Commission power to pass upon the future issue
or securities. while ample means should be pro
vlded to enable the commission. whenever IN its
judgment it Is necessary, to make a physical
valuation of any railroad As stated in my
message to the Congress q year ago, railroads
should be given power to enter into agreements,
subject to these agreements being made public
in minute detail and to the consent of the Inter
state Commerce Commission being first OBJ
tained. Until the national government assumes
proper control CT Interstate commerce, in the
exercise of the authority il already possesses, it
VIII be impossible either to give 10 or TO get
from the railroads full Justice The railroads
and all other great corporations will do well to
recognize that this control must come; the only
question is to what governmental body
most wisely exercise it The courts Will de-
ternne the limits within which the federal au-
thor1ty can exercise it, and there vii! still re-
main ample work within each state for the rail-
way commission of that state: and the national
Interstate Interstate commerce Commission wiz work IN
harmony with the several state commissions,
each within its own province, to achieve the
desired end.
Moreover. in my judgment there should be ad-
ditionai legislation looking TO the proper con-
troll of the great business con-
Sherman Anti Germs engaged in interstate
rust Law. business. this control to be
ercised for their benefit
and prosperity no less than for the protection
OF investors and of the general public. As
nave repeatedly said in messages to Congress
ana elsewhere, experience has definitely shown
not merely the unWisdom but the futility of
deavOring to put a stop to all business conbi-
nations. Modern industrial conditions such
that combination is not only necessary but
inevitable. It is SO i'll the world Of business
just as it is So in the world Of labor. and il
is as idle to desire to put an end to all corpora
uons, TO all big combinations of capital. to
desire to put an end to combinations of labor
Corporation and labor union alike have come TO
stay. Each if properly managed is source of
good and not evil. Whenever In either there is
evil, 1t should be promptly held to account;
but II should receive hearty encouragement 50
long as it is properly managed. II is profound
ly immoral TO put or keep the statute books
q law nolninally in the interest of public mo-
railty that really puts q premium upon public
immortality by undertaking TO forbid honest
men from doing what must be done under mod
ern business conditions. SO that the law itself
provides that its own infraction must be the
condition precedent upon business success. To
aim at the accomplishment of too much usually
means the accomplishment of too little. and
often the doing Of positive damage. In my
message to the Congress year ago, in speaking
OF the antitrust laws. 1 said:
The actual working of our laws has shown that
the effort TO prohibit all combination. good bad,
n csnita ike n ne a ah
sary element in our present industrial system. 1t
were possible such complete Prevention would do
damage to the body polite What We need is not
4 nm l4fipr hTIt 10
secure such rigorous and adequate control and
injuring the public or existing in such forms
inevitably to threaten injury. :. 1t IS un-
combinations instead of sharply discriminating be-
tween those combinations which do good ana those
roads would like to combine for the purpose Of
proper advantages at the expense of small slippers
snd Of Of % e P96 nv sgS bd IN IN
1t is a public evil to have on the statute
both judges and iuries reGlize that its full en
forcement would destroy the business of the coun-
tors OF the law against their will and put
Such result in turn tends to throw the decent
man and the Wilful wrongdoer INTO close associa-
The latter's level; for the who becomes law
spect for law and TO be willing to break il in many
ways No more scathing condemnation could be
visited upon law than is contained In the words
of the Interstate Commerce Commission when in
upon me o iat tat the numerous Joint
they say The decision OF the United States Su-
Joint Traffic Association case has produced no
practical effect upon the railway operations of the
they did before these decisions and with the same
probably to add that it is dificu to See NJ how our
interstate railways could be operated with due
gard TO the interest of the shipper and the rail-
way without concerted action of the kind afforded
supreme Court is is such that the business OF the
As 1 have elsewhere said:
Al
sfy 10 La p I6 ao ~ osnt mo- 10 be neces
any hosllhty 10 corpoTauons such. me CON
tary. AZ Ivtns Iiti4IA recosnIuon the LnaJ
combinations OF capItal, ike conJlndrions Iaoor
are d natural result OF mouern couuiuons and OF
1eF @ x 10 n viii S he lar ar as IA my aoy
power by eIoiIer and TO favor boIh long tney
quite mucn to favor and protect honest corpora
lions. honest business OF wealth, to urlng
TO justice those individuals and corporations repre-
senung dishonest methods. Most certainly there
will be no relaxation by the government authorities
in the effort to get at any great railroad
any any man VINO by clever swindnng oeVlces roDs IN
70 the general PUBLIC But any such move as this
honest corporations ana OF those who, when they
invest their small SAVINGS in stocks and bonds wish
estiy expended for legitimate business purposes.
for Which ask would be cheek upon .OSercspt-
BY overcapta aization. But it alone would mean an
increase In the value. an increase in the safety OF
aged railroads. and would render it far easier to
iiciy There has been complaint Of some OF the
investig recently carried on. but those VINO
COMPLAIN should put the blame where il belongs
upon the msdeeds which are done in darkness and
rot upon the which eTSHsht 1T them to
on the light, il is not responsible for what the
IiFht showed. ask for fun power to be given the
federal government because no single state can by
legislation effectUally with these powerful cor
porations engaged in interstate commerce, and.
while doing them full Justice exact from thefn IN
return full justice others. The conditions or rail-
activty the conditions OF our immense inter,
state commerce. such TO make the central
eoy arnInent competent to exercise fun super
Vie'Gn and control