The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-12-04
The Regulation of
Interstate Commerce

No small part of the trouble that we
have comes from carrying 10 an ex-
treme the national virtue OF self-re-
lance, of Independence in initiative and
action. It is wise to conserve this
virtue and to provide for its fullest
exercise, compatible with seeing that
liberty does not become liberty TO
wrong others. Unfortunately, this is
the kind Of liberty that the lack of all
effective regulation inevitably breeds.
The founders Of the constitution pro-
vided that the national government
should have complete and sole control
of interstate commerce. There was then
prac tically no Interstate business save
such as was conducted by water, and
this the national government at once
proceeded to regulate in thorough
going and effective fashion Conditions
have now so wholly changed that the
Interstate commerce by water is in
significant compared with the amount
that goes by land, and almost all big
business concerns are now engaged IN
interstate commerce. AS q result, IL
can be but partially and imperfectly
controlled or regulated by the action
of any one Of the several states, such
action Inevitably tending to be either
too drastic or else too lax, and in
either case ineffective for purposes of
Justice. Only the national government
can in thorough going fashion exercise ,ls, e
that there should be any extension of
federal authority. for such authority
already exists under the constitution In
but ii does mean that there should be
an extension of federal activity.
Not Capitalization
This is not advocating Capitalization.
IT IS merely looking facts in the face, and
realizing that Capitalization in busi-
ness has already come and cannot be
avoided or undone, and that the public
at large can only protect itself from
certain evil efforts Of this business
Capitalization by providing better
methods for the exercise OF control
through the authority already CEN
the constitution itself. There must be
no halt in the healthy constructive
course of action which this nation has
elected to pursue. and has steadily pur-
sued, during the last six years, as
shown both in the legislation OF the
congress and the administration of the
most vital need is in connection with
the railroads. AS to these, In my
Judgment there should now be either "a
national Incorporation act or a law
licensing railway companies to engage
IN Interstate commerce upon certain
conditions. The law should be so
framed as to give to the interstate COM
merce commission power TO pass upon
the future issue of securities, while
ample means should be provided to en-
able the commission. whenever in its
Judgment it is necessary, to make a
physical valuation of any railroad. AS
stated in my message to the con-
gress a year ago, railroads should be
given power to enter into agreements,
subject to the agreements being made
public In minute detail and to the con-
sent of the interstate commerce com
mission being first obtained. Until the
national government assumes proper
control of Interstate commerce, In the
exercise of the authority 1t already
possesses. It will be impossible either
to give to or to get from the railroads
full Justice The railroads and all other
great corporations will do we'll tc
recognize that this control must come,
the only question is as to what govern
mental body can most wisely exercise
it, The courts will determine the
limits within which the federal author
ity can exercise it. and there will still
remain ample work within each state
for the railway commission Of that
state; and the national interstate COM
merce commission will work in har-
mony with the several state commits
sions, each within Its own province, tc
achieve the desired end.