The state herald., 1907-12-06
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
ovERcAPlTALlZATioN.
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.

ia yoluminous document of nearly
10000 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 unscrupulous stock
speculators. and says:
IN any large body of men. however,
there are certain to be some who are
dishonest, and II the conditions are
such that these men prosper or com
init their misdeeds with impunity. their
example is very evil thing FOR the
community. Where these men are busi-
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. SUI
fering comes not only upon them. but
upon the innocent men whom they
have misled. 1t is a painful awakening,
whenever IL occurs; and, naturally
when IL does occur those who suffer
are apt to forget that the longer 1t was
deferred the more painful 1t would be.
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 II 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. ns n 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 unninching 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 imam
eiai conditions. lie says;
our steady aim should be by iegls-
lation. cautiously and carefully under
taken, but resoluteIy persevered in. to
assert the sovereignty OF the national
government by Affirmative action.
This Is only In form an innovation.
In substance II is merely n 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 l propose
is to meet the changed conditions In
such manner as will prevent the com
monwealth nbdicating the power II 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 l. Favored.
mo small part OF the trouble that we
have comes from carrying to an eS-
treme the national virtue OF self-re-
lance. OF Independence In initiative
and action. II is wise to conserve this
virtue and TO provide for Its fullest ex-
srcise. compatible. with seeing that lib
srty does not become liberty TO
wrong others. Unfortunately. this IL
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 In In
significant compared with the amount
that goes by land and almost all big
business concerns are now engaged In
interstate commerce. As result II
can be but partially and impcrfoetly
controlled or regulated by the action OF
any one of the several states. such ae-
tion Inevitably tending to be either too
drastic or else too iaI. and In either
case Ineffective for purposes OF justice.
Only th. national government can In
wAs ia A.
needed control, This does not mean
that ther. should b. any extension OF
federal authority, for such authority
already exists under the constitution In
ampiest and most far-rcachins form.
but u does mean that there should he
an extension of federal activity. This
II not advocating Capitalization, ~ In
merely looking facts In the face. and
reaiisinx that Capitalization In business
has already come and can not ba avoid.
I'd or undonS. and that the public at
large can only protect itself from Ger.
tain evil effects OF this business cen.
Haiiration by providing better methods
for the exercise OF control through the
authority already centralized In the
national government by the eonatltu,
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.
Ing the last sir years, as shown both In
the legislation OF the congress and tho
administration OF the law by the de-
partment Of justice The most vital
need In In connection with tho railroads.
A. to these, IN my Judgment there
should now he either a national ineofs
poration act or law licensing railway
companies 60 engage In interstate com.
merea upon certain conditions. The law
should be 20 framed No To rive 10 the
Interstate commerce commission power
80 pass upon the future lssue OF seeuti-
ties, Will. ample means should be pfos
vided 10 snabls the commission when
ever In its Judgment II II necessary. TO
make n physical valuation OF any rail-.
road. AZ I stated In my message To the
congress a year ago. railroads should
be given power 10 enter into agree.
meniH subject 10 these agreements be.
Ing made public In minute detail and To