The Washington herald., 1907-12-31

panic over but a fierce discussion arises
as 70 the cause OF It's coming. With
various motives. editors and public speak
ers 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-
tlon, and that the more definitely the
personality of the scapegoat can be fixed.
the more pleasure II gives the victims of
the catastrophe.
This mental attitude OF the business
community which / have described. as
likely 10 be found after every financial
panic. is clearly present to-day The
economic and political history of the last
four years gives 1t especial Importance.
because il offers 10 certain elements in
the business and political community, an
exceptional opportunity. Let me invite
your attention to that history. 1t is that
OF a giant struggle between the national
administration and certain powerful COM
binations In the financial world
Hard ON the Trust.
''These combinations, for lack OF
better name, are called trusts They
engaged I'm different lines OF manufae-
ture and production, and by assemb-
ling large amounts OF capital into one
mass I'm a particular line of business,
managed, by artful and skillfulIy de-
viSed, but illegal methods of duress. 10
exclude competition and mOnOpOIize
the trade. They became the dictatOrs
10 sreat railroads, however powerful,
and by threatening a withdrawal OF
patronage secured unlawful and dis
eliminating rebates, greatly increasing
their profits, and still more completely
suppressfDg competition.
Managed with conspicuous business
ability, these trusts went into legiti-
mate 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 a po-
sition OF vantage, It seemed hopeless
10 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 n time both laws were but
dead letters upon the statute books of
the United States. The purpose of the
administration of Mr.. Roosevelt was TO
make these men, however powerful
and wealthy, to know that the laws
upon the statute books were living
things and must be- SS@ved.
Determination I'm Law.
1T was not proposed that the legitimate
enterprises that were carried on with
the capital of these men should be de-
stroyed. II was not proposed that the
foreign trade which Injured 10 the benefit
of the whole country should be struck
down; but II was determined that those
who were making the statutes a 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
to eradicate systematic iawlessness 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 jobblng and overissue Of bonds and
stocks shown 10 have occurred in the
management of some OF our great eorpO-
ratiOns.
A Moral Awakening.
There was moral awakening among
the people, and the hands of the admins
tration We're held up in the work which
it was doing. On the other hand. the
men and the interests. which were the
subject Of attack. were not idle. They
had their partisans-guilty and innocent.
The guilty. Of course. wished 10 defeat
the administration by any means. The
innocent were those who had become in
volved with trust magnates in legitimate
business transactions. and 10 whom the
attitude OF the administration seemed one
Of general opposition to the whole busl-
ness community.
One OF the great manifestations one Of the monu-
in this moral progress was the rassage Of the
railroad rate bill. II met the opposition of many Of
the railroads. not because they were in sympathy
with the trusts, for think they. In many respects
had been sinned 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 10 their past
transactions revealed The fight made BY the admin
istration has been noteworthy And now
after the victory has been Won after there has been
introduced into the hearts of all nlen and especially
Of these leaders these tls, managers. and financial
opponents Of the administration the fear OF the law
the panic comes
Magnates Don't Suffer.
The tls; magnates solidly intrenched with great
financial resources not the ones who suffer the
most from it. Il is the men who hare had no such
unlawful or fruitful method Of making money. the
great body Of business men and wage-eaners. This
the feature Of the panic that deepest
sympathy and regret
The agents and sympathizers ard defenders Of the
trusts and others innocent but mistaken now Il;sh
forward TO place the blame Of the present conditions
upon the administration. They seek to the panic
argument for giving up the moral victory
which has been won. Apparently they would take
retrogade step back 20 the conditions that existed
five and six and ten years ago. when unhRmpered by
statute Law. these trusts building the financial
bulwarks behind which they now lighting
They rely upon the soreness and the mental strain
and suffering through which all the honest business
men OF the community have had 70 pass, as golden
opportunity for driving home their attacks upon the
administration and for paralyzing the onward move
ment toward supremacy Of the law
Brought About Suits.
at is true that the 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 1 have already
said, breaches Of trust, stock jobbing.
over issue OF stocks. and mismanagement
in some Of our largest corporations. They
have properly been severely condemned
by all. including the President. Knowl-
edge of these things doubtless Affected