Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-04-02

ana SupC rViSiOn can only be effectively
exercised by a sovereign whose juriSdic-
ton is co-eXtensive with the field of
work Of The corporation-that is by the
national government. | believe that
thas regulate ion and supervision can IL
obtained by the enactment Of law by
the Congress- our steady aim should
D" by legislation, cautiously and care
fully undertaken. but resolutely per
severed in to assert the sovereignty of
the national government by the affirm
alive action X
1t has been a misfortune that the
national laws on this subject have
hitherto been of negative or prOhibitivc
rather than an affirmative kind and
sui more that they have in part
sought to prohibit what could not have
been effectively prohibited, and have
~ part in their prohibitions COMPOUNDED
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
b" reasonable or unreasonable; and
where it is not useless it is generally
hurtful. x 4
What is needed is not sweeping pro-
hlpltlnn of every arrangement, good or
Whl"h tend to restrict competition, but
Slch adequate supervision and regula-
ton as Will prevent any restriction Of
competition from being to the detri-
mont of the public as well as such su-
n"rviSion and regulation as will pre-
mt other abuses in no way connected
with restriction Of competition Of
these abuses perhaps the chief although
By no means the only one, is over-cap-
ithlination-generally itself the result
Of dishonest rrOmotion-because of the
myriad evils ii brings in its train: for
such Overcapitalization often means an
imitation that invites business panic; it
the profit earned to the capital actually
invested and it creates a burden Of in
tcrcst payments which is q fertile cause
81 Improper reduction in or limitation
Of wages; it damages the small invest
Of, di~courageS thrift and encourages
gambling ami speculation: while per-
h2ps worst of all. is the thickness and
dishonesty which it imples-for harm
to morals is worse than any possible
harm to material interests, and the de-
bau"hcry of politics and business by
great dishonest corporations is far
worse than any actual. material evil
they do 10 tho public. Until the nation
Al government obtains. in some manner
which the wisdom Of the Congress may
suggest proper control Of the big cor
pore tinnS engaged in Interstate COM
mrrcc-that is over the great majority
" the big corporations, it will be i'm
H"sSible to deal adequately with these
Wis +. This power to regulate
rates. like all similar powers over the
business world, should be exercised
with moderation, caution and self-re-
'tra;nt. but it should exist so that it
can be effectively exercised when the
reed arises X. do not be-
'icve in tn" government undertaking
my work which can with propriety be
1T in private hands. But neither do
believe in the government flinching
rom oVorseH ing any work when it be
omcS evido mt that abuses are sure to
'htain therein unless there is govern
Mental supervision.
The best possible regulation of rates
would. of course. be that regulation
-vcurcd by an honest agreement among
lie railroads themselves to carry out
lie law. Such Il general agreement
would, for instance, put stop to the
forts of any one big shipper or big
abroad to discriminate against or Sc
,urc advantage over some rival; and
such agreement would make the rail
G3uS themselves agents for enforcing
!lc law. The power vested in the gov
rnm"nt to put Il stop to agreements
the dot riflllnt ~ 10 ~,
ny judgment be accompanied by pow
r to permit. under specific conditions.
md careful supervision. agreements
'ieally in the interest of the public.
Rut in my Judgment the ncco s;ity for
civ ing this further power is by no
means as great as the necessity for Civ
ng the commission or administrative
indy the other pDwc.'s I have tnuner-
ted above: and it may wen be mad
-isahie to attempt 10 vest this uarticu
ar power in the commission or other
administrative body until it already
assesses and is exercising what | re-
gard as by far the most important of
I'll the powers / recommend-as indeed
he vitality important poWer-that to
* given maximum rate. which rate
lfter the lapse of reaSona Bile time. goes
nto full effect. subject to review by
he courts
"A system of examination of railroad
accounts should be provided similar to
hat now conducted into the national
banks by the bank examiners; a few
Irst-claSs railroad accountants. if they
'ad proper direction and proper author
= 70 inspect books md papers. could
ccoTrlish much in preventing wilful
iolaticn OF the law