The Washington herald., 1907-12-31


there may have been, panics always come
with a shock, and tremendous surprise
panic over but a fierce discussion arises
as to the cause OF its coming. With
various motives. editors and public speak
frs rush TO the front TO fasten upon some
thing or some one, the responsibility
for what has happened. II is entirely
natural that. in the condition Of mind, in
which the suffering business men-are
left by the great strain and trial, such
suggestions should receive marked atten-
tion. and that the more definitely the
personality of the scapegoat can be fixed.
the more pleasure IL gives the victims OF
the catastrophe.
This mental attitude of the business
community which l have described. as
likely 20 be found after every financial
panic. is clearly present to-day. The
economic and political history OF the last
four years gives Il especial Importance.
because it offers TO certain elements in
the business and political community, an
exceptional opportunity. Let me invite
your attention to that history. IL is that
of giant struggle between the national
administration and certain powerful COM
binations In the financial world.
Hard on the Trust.
'Srhcse combinations, for lack of
better name, are called trusts They
engaged in different lines Of mnnuiac-
ture and production, and by HsSemb-
Hing large amounts of capital into one
mass I'm n particular line of business,
managed, by artfuI and skIllfulIy de-
vised, but illegal methods of duress. TO
exclude competition and mOnOpOlize
4 Loft
TO great railroads, however powerful,
and by threatening withdrawal OF
patronage secured unlawful and dis
eliminating rebates, greatly increasing
their profits, aud still more completely
suppressing competition.
Managed with conspicuous business
ability. these trusts went into Iegiti
rate foreign trade and largely in
creased our country's exports. The
profits which they realized enabled
them TO engage IN other enterprises
carried on by legitimate methods until
the hold which they acquired in the
business community gave them po
sition OF vantage. IT seemed hopeless
to combat
@The basis of their original success
and the maintenance of their power was
the violation OF the sherman anti
trust law and the Interstate Commerce
law, and for time both laws were hut
dead letters upon the statute books of
the United States. The purpose of the
administration of Mp. Roosevelt was to
make these men, however powerful
and wealthy, 10 know that the laws
upon the statute books were living
things md must be Oheyed.
Discrimination in Law.
1T was not proposed that the legitimate
enterprises that were OIrrieG on with
the capital Of these men should be de-
stroyed. II was not proposed that the
foreign trade which Injured TO the benefit
Of the whole country should be siruck
down; but il was determined that those
who We're making the statutes dead
letter should be subject to restraint by
injunction processes and punishment by
/ Indictment. not as a matter OF revenge.
not TO crafty the exercise Of power but
10 eradicate systematic lawleSsness from
our business system In this struggle
the administration has been greatly aided
by the popular sympathy awakened by
revelations as 10 breaches OF trust by the
managers Of some OF the great insurance
companies. by revelations as 10 misman-
agement IN the internal affairs OF great
/ railroad companies. by the disclosure as
/ TO the enormous amount Of rebates ex-
tOrted from the railroad companies by
these trusts, and by the constituencies
stock jobbing and overissue OF bonds and
stocks shown 10 have occurred in the
management Of some OF our great cOrpO-
rations.
A Moral Awakening.
There was a moral awakening among
the people. and the hands OF the admins
! tration were held up in the work which
II was doing On the other hand. the
men and the interests. which We're the
subject Of attack. were not idle. They
4 had their partisans-guilty and innocent.
The guilty. Of course. wished TO defeat
the administration by any means The
/ innocent were those who had become in
voIved with trust magnates in legitimate
business transactions. and 10 whom the
attitude OF the administration seemed one
OF general opposition to the whole busi-
ness community.
One OF the great manifestations one Of the mon.s-
meuts IN this moral progress the passage Of the
railroad rate bill. II met the opposition of many oi
/ the railroads. not because they were IN sympathy
Sith the trusts for think they. in respects.
had been more slnned against than SHINING. but be-
cause they resented that Close control that rigid
supervision which the public demanded in view Of
the possibilities which the disclosure 70 their past
transactions revealed. The fight made by the admin
/ iStration has been 4 noteworthy one And nov
after the victory has been after there has been
introduced into the hearts Of all men, and esIecisy
Of these leaders these trust managers and financial
opponents Of the administration. the fear Of the law
the panic comes on
Magnates Don't Suffer.
The trst magaates. solidly intTenched with S7eat
financial resources. not the who suffer the
most from it. Il Is the men who have had no sich
unlawhll or fruitful method Of making money, the
great body Of business men and Wage-eaTners. This
IS the feature OF the panic that arouss ones deepest
sympathy and regret
The agents and sympathzers and defenders Of the
trusts and Others innocent but mistaken. now rush
forward u place the blame of the present conditions
upon the administration They seek 10 the panic
( as an argument for giving Up the moral victory
which has been won. Apparently they would take a
retrograde step back 70 the conditions that existed
five and six and ten years ago. when unhampered by
statute law. these trusts building the financial
I bulWarks behind which they are now fighting
They rely upon the soreness and the mental strain
and suffering through which all the honest business
men OF the community have had TO pass a golden
opportunity for driFing home their attacks upon the
administration and for paralyzing the onward move
meut toward supremacy Of the law
Brought About Suits.
] 1T is true that he execution OF the
policy OF the administration has involved
the bringing to the light OF public criti-
cism the violation of law by influential
and powerful corporations, and their
prosecution. Through the Investigations
OF national and State tribunals, there
have been revealed. as I have already