The Mena weekly star., 1907-12-05
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND RAILROADS TO PREVENT
 ovERcAPtTALizATloN.
Believes This Would Solve the Prob lem Together with Provision for More Elastic currency-Recor- mends Postal Banks and Asks for Legislation Along Many Lines.

is q yoiuminous document of nearly 3o.eoe words, by far the longest mes sage he has ever submitted 10 congress. The opening subject Of she message is the financial condition of ths country. and for which the president lays much of the blame upon unscrupuious BLOCK spectators. and says
 Tn any large body of men. however. there are certain to be some who are dishonest. and if the conditions are such that these men prosper or com init their misdeeds with impunity. their example is a very evil thinG for the community. Where these men are busi- ness men of great sagscity and of tenn perament both interruptions 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 deluds many innocent people Into making i'm vestmenta or embarking in kinds of business that are really unsound. When the misdeeds of these successful iy dishonest men are discovered, suf- ferinE comes not only upon them, but upon the innocent men whom they have misled. It is a painful awakening, whenever it occurs: and. naturally. when ii does occur those who suner are apt to forget that the longer 1t was deferred the more painful 1t would be. In the sffort to punish the guilty It IT both wise and proper to endeavor % far as possible to minimize the dis tress of those who have been misled by the 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- sponsibls 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 unninching perseverance in the war against successful dishonesty"
 He quotes at length from his mes- sage of last year in which he advo- cated federal control of corporations doing interstate business. and believes that in such control would be found the remedy for overca apitalization and stock speculation which he believes have brought about the present fnan- ciai 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 it is merely a 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 as will prevent the com monwealth abdicating the power it has always possessed, not only in this coun- try but also in England before and since this country became a separate nation.
 Federal Control of
 Railroads Is 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. It 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. The 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 and this the national government at 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 hig business concerns are now engaged In interstate commerce. As a result, 1t can be but partially and imperfectiy controlled or regulated by the action of any one of the several states; such &C., 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 thoroughsoing fashion exercise the needed control This does not mean that there should be any extension of federal authority. for such authority already exists under the constitution in amplest and most far-reaching form: but ii does mean that there should be an extension of federal activity. This is not advocating centralization. It Is merely looking facts in the face and realizing that centralization in business has already come and can not be avoid cd or undone. and that the public at large can only protect itself from cer- tain evil effects of this business cen traiization by providing better methods for the exercise of control through the authority already centralized in the national government by the constitu. fson itself There must be no halt in the healthy constructive course of ac- ton 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 a national incor- poration act or law licensing railway companies to engage in interstate com merce 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 its Judgment it IS necessary. to make physical valuation of any rafl- road. As l stated in my message 10 the congress year ago, railroads should , be given power to enter into agree { ments. subject to these agreements be- Z ing made public in minute detail and to the consent of the interstate commerce E commission being first obtained. Until the national government assumes proper control Of interstate commerce, in the exercise of the authority 1t all ready possesses. it will be impossible either to give 10 or to get from the railroads full justice The railroads and all other great corporations will do well 10 recognize that this control must come; the only question is as to what governmental body can most
 wisely exercise it. The courts win de- &ermne the limits within which the
 federal authority can exercise it, and
 here will still remain ample work
 within each state for the railway com
 mission of that state; and the national
 interstate commerce commission will