Los Angeles herald., 1907-12-04
INTERSTATE COMMERCE

mo small part of the trouble that we
have comes from carrying to an extreme
the national virtue of self-reliance, Of
Independence in initiative and action. 1t
is wise to conserve this virtue and to
provide for its fullest exercise, compatible
with seeing that liberty does not become
a liberty to wrong others.
"Unfortunately, this is the kind of lib
erty that the lack of all effective regule-
ton inevitably breeds The founders of
the constitution provided that the national
government should have complete and sole
control of interstate commerce. There
was then practically no interstate busi-
ness save such as was conducted by
water and this the national government
at once proceeded to regulate in thorough
going and effective fashion.
Conditions have now so wholly changed
that the interstate commerce by water is
insignificant compared with the amount
that goes by land, and almost all big husi-
ness concerns are now engaged in inter-
state commerce AS result, it can be
hut partially and imperfectly controlled
or regulated by the action of any one OF
the several states; such action 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 thoroughgoing fashion
exercise the needed control. This does
not mean that there should be any exten-
sion of federal authority, for such author
ity already exists under the constitution
in amplest and most far-reaching form;
but it does mean that there should be an
extension of federal activity. This is not
advocating Capitalization. 1t is merely
looking facts in the face, and realizing
that Capitalization in business has al
ready come and cannot De avoided or un-
done, and that the public at large can
only protect itself from certain evil effects
of this business Capitalization by provid-
ing better methods for the exercise of
control through the authority already
centralized in the national government by
the constitution itself.
'There must be no halt in the healthy
constructive course of action which this
nation has elected to pursue, and has
steadily pursued, during the last six
years as shown both in the legislation of
the congress and the administration of
the law by the department of justice.
The most vital need is in connection with
the railroads. AS to these, in my judg-
rrent there should now be either a ma
tional incorporation act or law licensing
railway companies to engage in interstate
commerce 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 securities.
while ample means should be provided TO
enable tne cOmInlSSlOnt whenever III lIS
Judgment 1t is necessary, to make physi-
cal valuation of any railroad.
''As stated in my message to the con-
Rrass year ago, railroads should be
given power to enter into agreements,
subject to these agreements being made
public IN minute detail and to the consent
of the interstate commerce commission
being first obtained Until the national
government assumes proper control of in
terstate commerce, in the exercise of the
authority it already possesses, it will ne
impossible either to give to or to get
from the railroads full justice. The rail-
roads and all other great corporations will
do well TO recognize that this control must
come; the only question is as to what
governmental body can most wisely exer-
else It, The courts will determine the
limits within which the federal authority
can exercise It, and there will still remain
ample work within each state for the rail-
way commission of that state: and the
national Interstate commerce commission
will work in harmony with the several