Mower County transcript., 1907-12-04
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
OVERCAPITALlZATI
Believes This Would Solve tho Prob.
lem Together with Provision for
More Elastic Currency-Recom.
mends Postal Banks and Asks for
Legislation Along Many Lines.

Washington, Dec. g. President
Roosevelts annual message to congress
is .voluminous document of nearly
10000 words by far the longest mes
sage he has ever submitted to congress.
The opening subject OF the message IS
the financial condition OF the country,
and for which the president lays much
of the blame upon unscrupulous STOCK
spectators, and says:
I'm any large body Of men, however.
there are certain to be some who are
dishonest. and II the conditions are
such that these men prosper or COM
NIT their misdeeds with impunity, their
example is a very evil thing for the
community. Where these men are busl-
ness men Of great sagactty and OF tenn
permanent both unscrupulous 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 delude
many innocent people into making in
vestments or embarking in kinds OF
business that are really unsound.
When the misdeeds of these successful
1y dishonest men are discovered suf-
fering comes Mt only upon them, but
upon the innocent men whom they
have misled. 1t is a painful awakening.
whenever it occurs; and, naturally,
are apt to forget that the longer it was
deferred the more painful it would be.
In the effort to punish the guilty 1t Is
both wise and proper to endeavor so
far as possible to minimize the dis
tress of those who have been misled by
the guirty. Yet it is not possible to
refrain because of such distress from
striving to put an end to the mlSdeedS
that are the ultimate causes of the suf-
where possible to punish those re-
sponsible 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 unflinching perseverance in the
war against successful dishonesty"
He quotes at length from his mes
sage of last year in which he adVO-
Gated federal control of corporations
doing interstate business, and believes
that in such control would be found the
remedy for vercapitaliZatiOn and
stock speculation which he believes
have brought about the present finan-
cial 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 innovation.
In substance it is merely 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 I propose
is to meet the changed conditions in
such manner will prevent the COM
monwealth abdicating the power it has
always possessed, not only in this cOun-
try, but also in England before and
al thiq country became a SenaratQ
nation.
Federal Control of
Railroads IL Favored.
"No small part Of the trouble that we
have comes from carrying to an ex-
treme the national virtue Of self-re-
lance Of independence in initiative
and action. 1t is wise to conserve this
virtue and to provide for it's fullest ex-
eroise, compatible with seeing that lib
erty does not become g. 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
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 big
business concerns are now engaged in
interstate commerce. AS result, it
can be but partially and imperfectly
controlled or regulated by the action of
any one of the several states such ac-
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
thoroughgoing fashion exercise the
needed control. This does notj mean
that there should be any extenSion of
federal authority. for such authority
already exists under the constitution in
amplest and most far-rea ching form:
but it does mean that there should be
an extension of federal activity. This
is not advocating Capitalization. It is
merely looking facts in the face, and
realizing that Capitalization in business
has already come and can not be avoid
ed or undone, and that the public at
large can only protect itself from GER
tain evil effects Of this business CEN
tralization by providing better methods
for the exercise of control through the.
authority already centralized in the
ndLlOHdl government NY ,LNo COnSClLu.@
ton itself There must be no halt in
the healthy constructive course of. ac-.
ton which this nationIhas 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-
partm ent !of justice. The, most vital
need is in connection with the railroads.
AS to these, in my Judgment there
should now be either4a national incor-'
poration act or a 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 it's judgment it is necessary, to-
make physical valuation of any rail-t
road. AS I stated in my message to, the.
congress a year ago, railroads, should
be given power to enter into agree.
ments. subject to these agreements be-
tns made public in minute detail and e