The Idaho Springs siftings-news., 1907-12-07
SUGGESTS REMEDIES FOR ILLS
CONTROL OF CORPORATIONS AND
RAILROADS TO PREVENT
ovERcAPiTALIZAT
Believes This Would Solve the Prob
lem Together with Provision for
More Elastic Currency-Recom
mends Postal Banks and Asks for
Legislation Along Many Lines.

10 . 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
She financial condition of the country
nd for which the president lays much
OF the blame upon INSCRIPTIONS stock
speculators. and says
In any large body OF men. however
there are certain to be some who
dishonest, and II 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 sagacity and of tenn
permanent both INSCRIPTIONS 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 deude
many innocent people into making in
vestments or embarking in kinds of
business that are really unsound.
When the misdeeds of these successful
ly dishonest men are discovered, suf
ferng comes not only upon them, but
upon the innocent men whom they
have misled. 1t Is a painful awakening.
whenever 1t occurs; and, naturally,
when 1t does occur those who suffer
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 guilty. Yet 1t is not possible to
refrain because of such distress from
striving to put 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-
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
Amedy for overcapitalization and
bck 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 an 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 l propose
10 to meet the changed conditions in
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 IL Favored.
mo small part of the trouble that we
have comes from carrying TO an ex-
treme the nati0as! virtue OF self-re-
tn Int tiot tipo
and action. 1t is wise to conserve this
virtue and to provide for its fullest ex-
srcise. compatible with seeing that lib
srty does not become liberty to
= ~ners Unfortunately. this Is
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 AZ was conducted by water
sand 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
tr>t goes by land. and almost all big
0usiness concerns are now engaged in
Interstate commerce. AZ . result. II
can be but partially and imperfectly
COHtIOiAC0 oT IcB uAdtcU ny tHo hCtOH OIL
any one of the several states; such ac-
tion inevitably tending to be either too
drastic or else too lax. and in either
ease 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 extension of
federal authority, for such authority
already exists under the constitution in
amplest and most far-reaching form;
an extension of federal activity. This
- not advocating rehabilitation. 1t Is
merely looking facts in the face, and
pealising that Capitalization in business
has already come and can not be avoid
- or undone. and that the public at
large can only protect itself from GER
tain evil effects Of this business CEN
eEali4ation by providing better methods
for the exercise of control through tho
outhority already centralized in the
aational government by the constitu.
t1en itself. There must be no halt in
eAo healthy constructive course of ac-
tlGn which this nation has elected to
paBsue. and has steadily pursued, dur
em4 the last six years. shown both in |
tie legislation of the congress and the |
administration of the law by the de-
p09tment of Justice. The most vital |
49, IL in connection with the railroads
~ 20 these. in my Judgment there |
0Aoo1d now be either a national incor-
pegatfon act or a law licensing railway
eo0panies to engage in interstate COM
0e9ee upon certain conditions The law
ah091d be framed as to give to the |
1neeyDtate commerce commission power
- oass upon the future issue of securi-
S1oa while ample means should be pro-
ve0o4 to enable the commission, when
evgR In its judgment it Is necessary. to
9nre q physical valuation of any rail-
rS As stated in my message to the
eoA9tess year ago railroads should
- nlven power to enter into agree
0An1A subject to these agreements be-
~ ado public in minute detail and to