The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-12-06
CAUSES OF THE PRESENT FINAN.
cIAL CONDITIONS Is MADE
THE CHIEF TOPIC.
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
ovERcAPITALIZAT
Believes This Would Solve the Prob
lem Together with Provision for
More Elastic currency-Reeom
mends Postal Banks and Asks for
Legislation Along Many Lines.

Washington, Dec B. President
Roosevelt's annual message to congress
10 a voluminous document OF nearly
$4,000 words, by far the longest mes
sage he has ever submitted to congress.
The opening subject Of the message Is
the financial condition OF the country.
and for which the president lays much
of the blame upon inscriptions stock
spectators, and says:
I'm any large body of men. however.
there are certain to be some who are
dishonest, and If the conditions are
such that these men prosper or COM
NIT their misdeeds with impunity, their
example is a very evil thing for the
community. Where these men are bust
ness men Of great sagacity and OF tenn
permanent both inscriptions and reck-
less. and where the conditions are such
that they act without supervision or
control and at first without effective
check from public opinion. they delude
many innocent people into making In
vestments or embarking in kinds OF
business that are really unSound.
When the misdeeds of these successful
ly dishonest men are discovered, suf-
fering comes not only upon them, but
upon the innocent men whom they
have misled. 1t is a painful awakening,
when Ii does occur those who suffer
are apt to forget that the longer 1t was
deferred the more painful 1t would be.
In the effort to punish the guilty 1t Is
both wise and proper to endeavor so
far a. possible to minimize the dis
tress Of those who have been misled by
the guilty. Yet II Is not possible to
refrain because of such distress from
striving to put an end to the misdeeds
hot h. re-
fering. and. as a means to this end.
where possible to punish those ne
sponsible for them. There may be hon
est differences of opinion as to many
governmental policies: but surely there
can be no such differences as to the
need Of unfiinching perseverance In the
war against successful dishonesty"
He quotes at length from his mes
sage Of last year in which he advo-
Gated federal control of corporations
doing interstate business. and believes
that in such control would be found the
remedy for overcapitalization and
stock speculation which he believes
have brought about the present finan-
oiai conditions. He says:
Our steady aim should be by legis-
lation, cautiously and carefully under
taken, but resolutely persevered in, to
assert the sovereignty of the national
government by affirmative action.
This is only in form an innovation.
In substance it is merely a restoration;
for from the earliest time such regula-
ton of industrial activities has been
recognized in the action Of the law
making bodies; and all that I propose
IL - meet the changed conditions in
such manner as will prevent the COM
monwealth Indicating 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.
Federal Control of
Railroads Is Favored.
mo small part of the trouble that we
have comes from carrying to an ex-
treme the national virtue of self-re-
lance. of independence in initiative
and action. 1t is wise to conserve this
virtue and to provide for it's fullest ex-
srcise. compatible with seeing that lib
srty does not become a 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 practically 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. Condi-
lions 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, 1t
can be but partially and imperfectly
controlled or regulated by the action Of
any one Of the several states; such ac-
ton 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
thoroughgoing fashion exercise the
needed control. This does not mean
that there should be any extension of
federal authority. or such authority
already exists under the constitution in
amplest and most far-reaching form;
but 1t does mean that there should be
an extension Of federal activity. This
Is not advocating GENERALIZATION. 1t is
merely looking facts in the face, and
realizing that Capitalization in business
has already come and can not be avoid
ed or undone, and that the public at
large can only protect itself from GER
tain evil effects of this business CEN
tralization by providing better methods
for the exercise of control through the
national government by the constitu-
ton itself. There must be no halt in
the healthy constructive course of ac-
ton which this nation has elected to
pursue. and has steadily pursued, dur
yng the last six years. as shown both in
The legislation Of the congress and the
administration of the law by the de-
partment of Justice. The most vital
need is in connection with the railroads
AS to these. in my Judgment there
should now be either a national incor-
poration act or a law licensing railway
companies to engage in interstate COM
merce upon certain conditions. The law
should be so framed as to give to the
interstate commerce commission power
to pass upon the future issue of securi-
ties, while ample means should be pro-
vided to enable the commission, when
ever in its judgment it is necessary, to
make physical valuation of any rail-
road AS 1 sta Led in nv message to the
congress a year ago, railroads should
be given power to enter into agree
ments, subject to these agreements be-
ting made public in ujnSta detail and to