The L'Anse sentinel., 1907-12-07
CAUSES OF THE PRESENT FINAN-
ciAL CONDITIONS IS MADE
THE CHIEF TOPIC.
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
ovERcAPITALIZATioN.
selieves This Would Solve the Prob
lem Together with Provision for
More Elastic currency-Reeor-
mends Postal Banks and Asks for
Legislation Along Many Lines.

Washington. Dec. 3. - President
Rooseyelt's annual message to congress
Il a voluminous document OF nearly
"a, 900 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:
Elm 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
NIT 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
peramcnt 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
1y dishonest men are discovered. sur
fering comes not only upon them, but
upon the innocent men whom they
have misled. 1t is a painful awakening.
when IL does occur those who suffer
are apt to forget that the longer II was
deferred the more painful II would be.
In the effort to punish the guilty IL Is
both wise and proper to endeavor so
Ear as possible to minimize the dis
tress OF those who have been misled by
che 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 unhinching 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-
cial 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 IL is merely 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 propose
Is to meet the changed conditions in
such manner will prevent the COM
monwealth abdicating the power IL has
always possessed, not only in this coun-
try, but also in England before and
since this country became q separate
nation.
Federal Control Of
Railroads In 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. II is wise to conserve this
virtue and to provide for Its fullest ex-
ercise. compatible with seeing that lib
erty does not become liberty to
wrong others. Unfortunately. this is
the kind OF liberty that the lack of all
effective regulation inevitably breeds.
Tho 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.
u
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 IL
can be but, partially and imperfectly
controlled or regulated by the action OF
any one OF the several states; such ac-
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
chat there should be any extension OF
federal authority. for such authority
already exists under the constitution in
Rmplest and most far-reaching form:
but II does mean that there should be
an extension of federal activity. This
ls not advocating centralization. II 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
fralization 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 healthy constructive course OF ac-
tton 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-
partment of Justice. The most vital
need is In connection with the railroads.
As to these. In my judgment there
should now be either n national incor-
poration act or law licensing railway
TO engage In interstate COM
mcrcc 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 It's judgment IL Is necessary. to
make a physical valuation of any rail-
road. AS stated in my message to the
congress n year ago. railroads should
be given power to enter into agree
mcnts. subject to these agreements be-
ng made public In minute detail and to