Los Angeles herald., 1907-08-27
Los ANGELES HERALD: TUESDAY MORNING. AUGUST ~

In the domain of high finance by which
a few had been enabled to add to their
store at the expense of the many.
"The occasion thus presented called for
a careful study of the situation by those
in statecraft. Many there were
doubtless who attempted to perform this
duty. Their purpose was to ascertain
how wrongdoing became possible, and
whether due in some part to direct 1egis
lation improperly procured, to inadequate
legislation, or to failure to enforce ex-
listing law on the part of those charged
with the duty of it's enforcement. The
cause or causes being first ascertained,
the next step in orderly procedure was to
ascertain the needed remedies-remedies
having for their purpose the punishment
of the violators of the law and the pre-
vention of similar abuses of the public in
the future--remedies which, while hold
ing in check the wrongdoer, should save
from spollation or injury the innocent
stockholders or bond holders who were
in some measure the victims of their rep
Care Is Necessary
"Justice being the proper aim of all
law and of all lawmakers, great care is
required in such an emergency as that
which came suddenly upon us, lest the
innocent should suffer, with the guilty,
lest through ill-chosen and econ nomically
legislation the people as a whole
should be made to suffer because of the
faults committed by comparatively few.
But those charged with this duty both
because of official obligation and from
love of country, were not permitted to
work out these problems thus presented
in that quiet and orderly way which
should characterize a government of law.
Indeed when they had scarcely be-
gun the task which the situation de-
volved upon them, the demagogues of
the country, seeing their opportunity,
seized 1t. They filled the land with de-
unciation not only of those who had
been wrongdoers but of all corporate in
terests of every kind. 1t mattered not
to them that the great trunk lines of rail-
road contributing so largely to the mag
nificent and uniform development of the
the street surface railroads, ad-
ding SO largely to the comfort and con-
venience of a vast contingent of our
population, the great manufacturing
plants, bearing their part in making up
the wealth of the people, and many other
industries requiring large amounts of
capital could not have been built at all
but for the device of the corporation,
which had enabled hundreds, and in some
instances thousands of persons to unite
IN U0e. CONSTRUCTION anu OpeTdtiOH VI
single great undertaking.
For their purpose was not the patriotic
one Of discovering and applying remedies
Instead they sought power, political
leadership and office. They sought them
for selfish advantage, not for the public
veal Therefore, they hesitated not be-
cause injustice would inevitably result
from their forays against all wealth,
whether honestly or dishonesty gained.
whether employed for public good or
public harm.
Remedies Proposed
Remedies of course they proposed, for
the politician cannot succeed by denun-
citation alone. Some Of them, apparently
oblivious of the fact that the powers con-
ferred upon congress by the federal con-
stitution are enumerated powers, and
that all other powers are by that instru-
ment reserved to the states and to the
people, professed to see in the assump-
ton of federal control of corporations
the true remedy.
'"rhese were divided into two principal
classes. The first, and by far the larger
class, insisted that through the commerce
clause of the constitution congress could
devise plan by which it could take con-
troll of the insurance companies, trust
companies, great railroad and other cor
porations. In this manner congress could
relieve the states of their several duties
and obligations to their own creations,
and at the same time effectively relieve
such corporations from state control In
that class, in addition to the political
leaders and other well meaning persons
who had not especially studied our con-
stitutions both federal and state, were to
be found some who were interested Off
cially in insurance, railroad and other
"In the second class were to be found
those who, while not disagreeing with
the first class in the assumption that con-
gress possesses the power by the COM
merce and post road provisions of the
to centralize the greater por-
tion of powers of government In the fed
eral government, nevertheless insisted
that the remedy thus proposed was not
broad enough With them the remedy of
remedies is for the federal government
to acquire the railroads and operate them.
There were those, however, who, mind
full of the limitation of the powers of
and appreciating the wisdom OF
the fathers In securing to the states
local self-government, wisely took the
ground that If the states had failed in
the performance of duty, they should
now proceed to repair such neglect. This
class can be subdivided into two parts
the first embracing those who deemed
1t wise to study the situation deeply,
to provide for the immediate trial of ex-
listing remedies, and If the law be found
in any respect, then to sup
plement it by such other statute or stat
utes as should be found needful. The
second class, composed of adherents to
the power and duty of the state, op-
posed the slower and safer method Of
those who proposed to look before leap
ing, and loudly proclaimed the neces-
sity for legislation that should tear up
that which Is, both root and branch.
and start anew.
''In the circumstances to which I have
of necessity made but brief and made
quite allusion, the legislatures of many of
the states assembled. That the majority
of their members were animated by good
doubt not. Naturally they
wished to meet what seemed to them the
honest desire of their constituents, that
all abuses be remedied. But the major
ity had neither the time nor the training
to enable them in one short session,
crowded with hundreds of bills, to go
to the bottom of so vast a subject.
Hence they were unable to say whether
certain abuses were due to the made
quacies of law or to the failure of the
to enforce the law.