The Huttig news., 1907-12-07
CAUSES OF THE PRESENT FiNAN- GAL CONDITIONS IS MADE
 THE CHIEF TOPIC.
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND RAILROADS TO PREVENT
 OVERCAPITALIZATI

lem Iogethcf with ffoviSlon TOT
 Mere Elastic Currency-Recom
 nends Postal Banks and Asks for
 Legislation Along Many Lines.
 Washington. Dee. 3. - President Roosevelts annual message to congress As Voluminous document of nearly 30.eoe 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 interruptions stock speculators, and says:
 "In 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 init their misdeeds with impunity, their example is a very evil thing for the community. Where these men are busi- ness men of great sagacity and of tenn perament both interruptions 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. It is painful awakening. whenever it occurs; and, naturally, when 1t does occur those who suffer are apt to forget that the longer it was deferred the more painful it would be. In the effort to punish the guilty it is both wise and proper to endeaVor so far as possible to minimize the dis tress of those who have been misled by the guilty. Yet it is not possible to refrain because of such distress from striving to put an end to the misdeeds that are the ultimate causes of the suf- fering, and as a means to this end, where possible to punish those re- 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 unf1inching perseverance in the war against successful dishonesty.
 He quotes at length from his mes sage of last year in which he advo- cated federal control of corporations doing interstate business, and believes that in such control would be found the remedy for overcapita lization ana stocik speculation which he believes have brought about the present hnan- ft0p2.. He a v;
 Our steady aim should be by 1egis- 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- tion of industrial activities has been recognized in the action of the law making bodies; and all that I propose is to meet the changed conditions in such manner as will prevent the com monwealth abdicating the power it 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.
 No small part of the trouble that we have comes from carrying to an ex- treme the national virtue of self-re- liance, of independence in initiative and action. It is wise to conserve this virtue and to provide for it's fullest ex- ercise, compatible with seeing that lib- erty 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- tions 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 a result, it can be but partially and imperfectly controlled or regulated by the action of any one of the several states; such &C., tion 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. for such authority already exists under the constitution in amp1est and most far-reaching form but it does mean that there should be an extension of federal activity. This Is not advocating centralization. It is merely looking facts in the face, and realizing that centralization in business has already come and can not be avoid ed or undone, and that the public at large can only protect itself from cer- tain evil effects of this business cen tralization by providing better methods for the exercise of control through the authority already centralized in the national government by the constitu. tion itself There must be no halt in the ehealthy constructive course of ac- tion which this nation has elected to pursue and has steadily pursued, dur ing the last six years, as shown both in the legislation of the congress and the administration of the law by the de- partInent of justice. The most vital need is in connection with the railroads As to these, in my judgment there should now be either national incor- poration act or law licensing railway companies to engage in interstate com meree 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- vded to enable the commission when ever in it's judgment it is necessary, to make a physical valuation of any rail- road AS stated in my message to the congress 8 year ago, railroads should be given power to enter into agree ments, subject to these agreements be- H.