The Washington herald., 1907-08-20

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Court that a corporation cannot refuse
! 10 disclose facts which will criminate it.
! self make less important the advantage
which the license system was supposed
/ to furnish IN keeping the business OF a
/ corporation under observation. Until it
/ is clearer than at present that the evils
OF unlawful combinations cannot be sup
pressed without it, il seems to me such
a plan ought not to be tried.
Evil of Swollen Fortunes
One Of the results Of the conditions and
evils which I have been describing has
been the concentration Of enormous
wealth in the hands of few men. l do
not mean TO say that ali the large for
tunes are TO be traced 10 unlawful means,
but it is quite clear that many of those
/ described as swollen. are due to rebates,
or to some form Of unlawful monopoly.
or to oveTcapitaliZation OF course. great
/ enterprises organized and managed by
men Of transcendent ability should result
/ IN great pront TO them. It is proper com
/ pensation when they share with the peo-
! pie the profit from the economies that
they introduce in the business by reduc-
ing the price. The captains of Legitimate
/ industry. therefore. are entitled TO IarEe
reward, and it is impossible to impose a
fixed limitation upon the amount which
they may accumulate.
on the other hand. it is not safe for
the body polite that the power arising
from the management Of enormous or
swollen fortunes should be continued from
! generation TO generation in the han,s Of
few, and efforts by laws, which are not
! confscatory, to divide these fortunes. and
to reduce the motive for accUmi lP dng
/ them are proper and statesmanlike and
without the slightest SAVIOR of socialism
or anarchy. The law of primoge. .iture
was abolished in States where it had
been adopted. merely for the purpose of
securing a division Of the land among
I the children of the man who owned the
land. Many of the provisions Of our pub
I lie land laws are drawn TO discourage the
union of large tracts in one ownership
and TO encourage small holdings.
Remedy in state Legislation.
The State legislatures have complete
control of what shall be done with A
mans property on his death. He has no
right 20 leave it by will and his children
[
which the legislatures may not modify
or take away. The States. therefore. can
best remedy the dangers Of too great ac-
cumulatiou of wealth in one hand by con-
trolling the descent and devolution Of
property. and they ought to do so They
can adopt the French method. which re-
quires the division Of a large part of a
/ ma n ali IA
and gives him absolute power with respect
TO only a fraction. This would secure a
division in the second generation and a
probable change for the better in respect
10 such fortunes. Many of the States
have already, and properly, adopted a
/ graduated inheritance tax, which not
only reduces the great fortune, but les
sens the motive for its accumulation.
Federal action for a Federal end may
legitimately have an indirect effort 20
aid the States in reforms peculiarly with
in their cognizance. When, therefore, the
government revenues need ada. n, or re-
adjustment. / believe Federal gradu-
ated Inheritance tax to be useful means
Of raising government funds. II IS easi-
~ and certainly collected. The incidence
! Of taxation is heaviest on those best able
| to stand II, and Indirectly, while not
placing undue restriction on individual ef-
/ fort. it would moderate the enthusiasm
! for the amassing of immense fortunes.
/ A graduated income tax would also have
/ a tendency 10 reduce the motive for the
/ accommodations of enormous wealth. but
/ the Supreme Court has held an income
/ tax not TO be a valid exercise Of power
! by the Federal government. The obiec-
l ton 10 it from a practical standpoint IS
its lnquisitorial character and the pre-
MUM il puts on perjury. In times Of
1 great national need. however an income
tax would be OF great assistance in fur
nishing means 70 carry on the govern
ment, and it is not free from doubt how
/ the Supreme Court. with changed mem
bership, would view a new income tax
law under such conditions. The court
was nearly evenly divided in the last case,
and during the civil war great sums we're
collected by an income tax without judi
cial interference. and as it was then sup
posed within the Federal power.
FavOrs Federal Income Tax.
/ 40 not favor Federal legislation
now tn reduce such fortunes, either
by n constitutional amendment to
permit an Income tax or by grad
uated inheritance tax, but when
I ever the government revenues need
an increase or readiustment, should
strongly favor the imposition of n
/ graduated Inheritance tax, and. if
necessary for the revenues, "A change
In the Constitution authorizing a
/ Federal income tax. with MI the in
cidentaI influence of both measures
TO Lessen the motive for accumuIa-
ton.
The suppression Of monopolies and the
abolition Of secret rebates and discrim-
mating privileges by the railroads. will
lessen the possibility Of such enormous
accumulations as those which have al
ready taken place. The evils of too great
concentration Of money or of any kind of
property in few hands are to be best
remedied by the gradual effect Of a long
course of legislation and not by measures
having an immediate and radical effect
that are apt 10 involve injurious conse-
quences TO the general business commu-
nifty.
I have thus reviewed at great length
what have properly come to be known as
! President Ro0sevelt's policies, and have
discussed them with what I hope YOU
Will think is entire candor ! have at
tempted to point out one or two instances
In which I would qualify details of future
policies which he has sketChed. but with
these minor exceptions as to method. I
am glad to express my complete, thor
ough, and sincere sympathy with. and ad-
miration for, the great conserving and
conservative movement which he has with
wonderful success initiated and carried
so far against bitter opposition, to remedy
the evils OF our prosperity and preserve
TO US the institutions we have inherited
from our fathers.
ROOseveIt's Policies Not SOciaIIstic.