Arizona republican., 1907-12-04
THF STATf OF THE UNION
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action. It is wise to conserve thls Nlr- tue and to provide for its fullest exer- else compatible with seeing that liber- ty does not become 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 provided that the national government should have complete and sole control of in interstate commerce. There was then practically no interstate business save such as was conducted by water and this the national government al once proceeded 10 regulate in thoroughgoing and effective fashion. Conditions have now so wholly changed that the inter state commerce by water is insignifi- cant compared with the amount that goes by land. and almost all big busi- ness concerns are now engaged in in terstate commerce. As result. it can be but partially and impefectly con trolled or regulated by the action of any one of the several states; such ac- ton 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
 
 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; but it does mean that there should be an extension of federal activity. This is not advocating -centralization. It is merely, looking facts in the face, and realizing that centraligation in busi- ness has already come and can not be avoided or undone. and that the public al large can only protect itself from certain evil effects of this business cen- tralization by providing better meth ods for the exercise of control through the authority already centralized in the national government by the constitu- tion itself. There must be no halt in the healthy constructive course of &C., tion which this nation has 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 department of justice. The most vital need ss in connection with the rail- roads. As to these, in my judgment there should now be either national incorporation act or a law licensing railway companies to engage in inter- state commerce upon certain condi- lions. 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 the commission, whenever in its judg- ment it is necessary, 10 make a physi- cal valuation of any railroad. As I stated in my message to the congress year ago. railroads should be given power to enter into agreements. sub- 5eet to these agreements being made public in minute detail and to the con- sent of the Interstate Commerce Com mission being first obtained. Until the national government assumes proper control of interstate commerce, in the exercise of the authority II already possesses. it will be impossible either 10 give to or to get from the railroads full justice. The railroads and all oth- CT great corporations will do well to recognize that this control must come the only question is as to what gov ernmental body can most wisely exer- else it. The courts will determine the
 
 ity can exercise it. and there will still remain ample work within each state for the railway commission of that state; and the national Interstate Com merce Commission win work in har- mony with the several state commits sions, each within it's own province, to achieve the desired end.
 Amended Anti Trust Law
 Moreover. in my judgment there should be additional legislation look ing to the proper control of the great business concerns engaged in inter- state business, this control to be exer- cised for their own benefit and pros- perity no less than for the protection of investors and of the general public. As have repeatedly said in messages to congress and elsewhere, experience has definitely shown not merely the unwisdom but the futility of endeav- bring to put a stop to all business com binations. Modern industrial condi- tions are such that combination is not only necessary but inevitable. IL Is so in the world of business jus, as it Is so in the world of labor. and it is as idle to desire to put an end to all cor porations. to all big combination of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly managed, is a source of good and not evil. When ever in either there is evil, it should be promptly held to account: but it should receive hearty encouragement so long as IL is properly managed. It is pro- foundly immoral to put or keep on the statute books a law, nominally in the interest of public morality. that re- ally puts a premium upon public im- morality, by undertaking to forbid hon. est men from doing what must be done under modern business conditions. so that the law itself provides that its own infraction must be the condition precedent upon business success. To aim at the accomplishment of too much usually means the accomplishment of too little. ano often the doing of posi- tive damage. in my message to the Congress year ago. in speaking of the antitrust laws. I said:
 Good and Bad Trusts.
 The actual working of our laws has shown that the effort to prohibit all combinations, good or bad. is nox- ious where it is not ineffective Com bination of capital. like combination of labor. is a necessary element in our