The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-04

10 make IL a matter OF necessity 10 give
TO the sovereign-that is, to the govern
ment which represents the people as a
Wholesome effective power of super
vision over their corporate use. In order
TO insure a healthy social and Industrial
life, every big corporation should be held
responsible by, and be accountable to,
some sovereign strong enough to control
its conduct. I am in no sense hostile to
corporations. This Is an age of cOmbina-
ton, and any effort to prevent all COM
blndtlon VIII be not only useless, but IN
the end vicious, because Of the contempt
for law which the failure TO enforce law
inevitably produces. We should, more
over, recognize in cordial and ample fash
ion the immense good effected by corpor-
ate agencies in a country such as ours,
and the wealth of intellect, energy and
fidelity devoted to their service, and
therefore normally TO the service OF the
public by their officers and directors. The
corporation has come to stay, just as the
trade union has come to stay. Each can
do and has done great good. Each should
be favored so long as it does good But
each should be sharply checked where II
acts against law and justice.
Federal Rather Than State.
80 The makers of our national con-
stitutiOn provided especially that the reg
ulation Of interstate commerce should
come within the sphere of the general
government. The arguments in favor OF
their taking this stand were even then
overwhelming. But they are far stronger
today, in view of the enormous develop
ment of great business agencies. usually
corporate in form. Experience has SHOWN
conclusiVely that il is useless to try to
get any adequate regulation and super
vision of these great corporations by state
action. Such regulation and supervision
can only be effectively exercised by
sovereign whose jurisdiction Is coeXten-
sive with the field of work of the corpor-
atiOns-that is. by the national govern
ment. I believe that this regulation and
supervision can be obtained by the en-
actment of law by the congress.
our steady aim should be by legislation,
cautiously and carefully undertaken, but
Iesolutely perseVereG in. to assert the
sovereignty of the national government by
affirmative action.
An Innovation.
This is only in form an innovation. In
substance it is merely a restoration; for
from the earliest time such regulation Of
industrial activities has been recognized in
the action of the lawmaking bodies; and
all that / propose is TO meet the changed
conditions In such manner as VIII prevent
the commonwealth abdicating the power
IL has always possessed, not only in this
country, but also in England before and
since this country became a separate ma
ton.
1ionai laws on this subject have hitherto
been of a negative or prohibitlVe rather
than an affirmative kind, and still more
that they have in part sought to prohibit
what could not be effectively prohibited,
and have in part in their prohibitions con-
founded what should be allowed and what
should not be allowed. 1t is generally
useless TO try to prohibit all restraint on
competition. whether this restraint be rea-
sonable or unreasonable: and where II is
not useless il is generally hurtful . ?
The successful prosecution Of one device
10 eVade the law Immediately develops an
other device TO accomplish the same pur-
pose. What is needed is not sweeping pro
hibition Of every arrangement. good or
bad. which may tend TO restrict cOmpe-
tition, but such adequate supervision and
regulation as Will prevent any restriction
of competition from being to the detri-
ment of the public as well as such super
vision and regulation as Will prevent
other abuses in no way connected with
restriction of competition
have called your attention in these
quotations TO what / have already sand
because / am satisfied that it is the duty
of the national government to embOdy IN
action the principles thus expressed.
Interstate Commerce.
No small part of the trouble that We
have comes from carrying to an extreme
The national virtue of self-reliance, of IN
deDendence in initiative and action. 1T
IS wise to conserve this virtue and TO pro-
vide for its fullest exercise, compatible
with seeing that liberty does not become
a liberty to wrong others. Unfortunately.
this is the kind OF liberty mat the lack
of all effective regulation inevitably
breeds. The founders of the constitution
provided that the national government
interstate commerce. There was then
practically no interstate business save
such as was conducted by water. and this
the national government at once pro
ceeded to regulate in thOrOughgOing and
effective fashion Conditions have now
so wholly changed that the interstate
commerce by water is Insignificant COM
pared with the amount that goes by land.
and almost all big business concerns are
now engaged in interstate commerce. AS
a result, II can be but partially and i'm
perfectly controlled or regulated by the
action of Ony one of the several states;
such action inevitably tending to be either
100 drastic or else too lax, and in either
case ineffective for purposes OF Justice
Only the national government can in
1hOrOughgOlng fashion exercise the need
ed control. This does not mean that there
should be any extension Of federal author
ftv. for such authority already exists un-
der the constitution in ampleSt and most
far-reaching form; but il does mean that
there should be an extension OF federal
activity.
Capitalization of Power.
This is not advocating Capitalization. II
is merely looking facts in the face, and
realizing that Capitalization in business
has already come and can not be avoided
or undone. and that the public at large
can only protect itself from certain evil
effects of this business Capitalization by
providing better methods for the exercise
of control through the authority already
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 pursued, during
The last six years shown both in the
legislation Of the congress and the ad-
,ninistration of the law by the depart
Inent 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 incorporation act or a
Jaw licensing railway companies 10 en-
gage I'm interstate commerce upon certain
Conditions. The law should be so framed
as 10 give TO the interstate commerce
fssue of securities, while ample means
should be provided TO enable the com
mission. whenever in its judgment II is
necessary 10 make physical valuation
of any railroad
Publicity of Agreements.
As I stated in my message 10 the con-
cress a year ago. railroads should be given
mower TO enter into agreements subject
10 these agreements being made public
in minute detail and TO the consent of
the Interstate commerce commission be-
ing first obtained. Until the national
government assumes proper control of in
Terstate commerce, in the exercise OF the
authority il already possesses, 1t will be
impossible either 10 give TO or TO get rom
The railroads full justice. The railroads
and all other great corporations VIII DO
we'll 10 recognize that this control must
come: the only question is as TO what
governmental body can most wisely eN-