The sun., 1907-08-21


ditiOns.
GREATER FEDERAL CONTROL or BUSINESS.
Experience has shown that II Ia neces-
sary 10 exercise n far more efficient con-
trol than at present over the business use
Of those vast fortunes, chiefly corporate,
which are used (as under modern condl-
tOns they almost invariably areD in inter
state business When the Constitution
was created none of the conditions OF
modern business existed They are wholly
new. and we must create new agencies TO
deal effectively with them. There = no
objection in the minds Of this people TO
any mans earning any amount of money
il he does 10 honestly and fairly, II he gets
il as the result Of special skill and enter
prise, as "a reward OF ample service actually
rendered. But there IL growing de-
termination that no man shall ainass great
fortune by special privilege, by chicanery
and wronRdoing, 10 far an II IL IN the power
Of Legislation to prevent, ana that the
fortune when amassed shall not have a
business use that is anti-social. Most
large corporations do a business that ~
not confined 10 any one State. Expert
ence has shown that the effort 10 con-
troll these corporations by mere Staie
action cannot produce wholesome re-
suits. In moSt cases such effort talls 10
correct the real abuses of which the cor
poration is or may be guilty, while in
other cases the effort il apt 20 cause either
hardship TO the corporation itself or else
hardship 10 neighboring States which
have not tried 10 grapple with the problem
in the same manner; and Of course we
must he as scrupuous 10 safeguard tine
rights Of the corporations as 20 exact from
them in return a full measure OF justice
to the public. / believe in national m
CORPORATION law for corporations engaged
in Interstate business. | believe, further
more that the need for action is most
pressing IA regards those corporations
which, because they are common carriers,
Il. H. e.... .KNAx nj
can be completely controlled in all respects
by the Federal Government, by the exercise
Of the power conferred under the Interstate
commerce clause, and, if necessary, under
the post road clause, OF the Constitution
During the last few years we have taken
marked strides in advance along the road
of proper regulation of these railroad
corporations; but we must not stop IN the
work. The national Government should
exercise over them a similar supervision
and control TO that which il exercises over
national banks. We can do this only bv
proceeding further along the lines marked
out by the recent national legislation.
ExPFRrMENrINo WITH BUSINESS.
In dealing with any totally new set OF
conditions there must at the outset be hesi-
tation and experiment. Such has been our
experience in dealing with the enormous
concentration Of capital employed in inter
state business. Not only the legislatures
but the courts and the people need gradu-
ally TO be educated SO that they may see
what the real wrongs are and what the
real remedies. Almost every blg business
concern is engaged in interstate COM
merce and such a concern must not be
3 allowed by a dexterous shifting Of posi-
ton, az has been too often the case in the
past, TO escape thereby all responsibility
either TO State or to nation. The American
people became firmly convinced Of the need
Of Control over these great aggregations OF
capital, especially where they had monopo-
listic tendency. before they became quite
clear as TO the proper way OF achieving the
control. Through their representatives IN
Congress they tried two remedies, which
were to a large degree. at least as interpreted
by the courts, contradictory On the one
hand under the antitrust law the effort
was made to prohibit all continuation.
whether il was or was not hurtful or bene-
ficial to the public On the other hand.
through the interstate commerce law a
beginning was made in exercising such
supervision and control over combinations
as TO prevent their doing anything harmful
to the body polite. The first law. the so
called Sherman law, has filed a useful
place. for IL bridges over the transition
period until the American people shall def
nitely make up its mind that II will exercise
over the great corporations that thorough
going and radical control which il is certain
ultimately to find necessary The principle
Of the Sherman law so far as it prohibits
combinations which, whether because OF
their eXteQI OF Oh LnelT CDdTdCteT, are ndftn-
ful to the public must always be preserved
Ultimately, and l hope with reasonable
speed the national Government must pass
laws which. while increasing the supervisory
and regulatory power of the Government,
also permit such useful combinations as
are made with absolute openness and az the
representatives OF the Government may
previously approve. But II will not be pos
sible 20 permit such combinations save as
the second stage in "A course OF proceed
r. -. H. N,.s
exercise of far more complete control
by the national Government,
FINES VS.. JAIL PENALTIES.
In dealing with those who of lend against
.hcanti-tr,lst and int erstate commerce law =
the Department of Justice has to encounter
many and great difficulties. Often men
who have been guilty of violating these
laws have really acted in criminal fashion,
and IL possible should be proceeded against
crminally; and therefore il is advisable
that there should be a clause in these laws
providing for such criminal action ana for
punishment by Imprisonment as well az
by fine But. as ia well known, in crimi-
nal action the law is strictly construed in
favor Of the defendant. and in our country
at least both judge and jury are far more
inclined to consider his rights than they
are the interests of the general public;
while in addition il is always true that a
mans general practices may be 80 bad
that a civil action will lie when II may not
be possible TO convict him of any one Grim
inal act There is unfortunately a certain
number of our fellow Countrymen who
seem to accept the view that unless man
can be proved guilty. of some particular
crime he shall be counted a good citizen
no matter how infamous the life he has
led, no matter how pernicious his doctrines
or his practices This is the view announced
from time TO time with clamorous insist
ence. now by n group of predatory cap
italists, now by group OF sinister an
archistic leaders and agitators. when
ever a special champion Of either class
no matter how evil his general life, is
acquitted Of some one specific crime
Sich a view s wicked whether applied TO
capitalist or labor leader TO rich man OF
poor man. But we have TO take this feeling
into account when we are debating whether
tits possible to get conviction ina criminal
proceeding gainst some rich trust magnate
many OF whose actions are severely to be
condemned from the moral and social
standpoint. but no one of whose actions
seems clearly to establish such techni cal
guilt as will insure q conviction. Az a
matter of expedency. in enforcing the la "
against y great corporation we have con-
tinually 10 igh the arguments pro and con
aEtO whether prosecution ca n success fll IN