The Washington herald., 1907-12-04
PRESIDENT STICKS
TO REFORM POLICY
Continued from Page Four.

any circumstances including business CEN
ualization dishonesty is bound to inter-
fere unless adequate government super
vision Is exercised, and reiterates his rec
ommendation that the government should
be made the sovereign TO which all cor
porate combinations OF an interstate ma
tUre should be made answerable. "The
corporation has come TO stay. Just as the
trade union has come 10 stay" he quotes
from the former message, land each
should be favored so long as il does
good"
Recalling the power vested in the gen
eral government by the Constitution 10
control interstate business. and citing in
stances 10 show that such regulation is
not new in the laws either of this country
or OF others, he ends the quotation with
the sentence What is needed is not
sweeping prohibition Of every arrange
ment 10 restrict competition. but
such adequate supervision and regulation
as VIII prevent any restriction of compe-
ution from being TO the detriment of the
public, as Well as such supervision and
regulation as will prevent other abuses in
no way connected with restriction OF com
petition He then continues by again
recommending that these principles be
embodied in legislation.
More Federal Activity.
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 centraIi-
zation. Il is merely looking facts in the
face. and realizing that Capitalization in
business has already come and cannot be
avoided or undone. tnd that the public at
large can only prc eet itself from certain
evil cffec-5- i business Capitalization
by pros iding better methods for the exer-
else Of control through the authority al
ready centralized in the national govern
ment by the Constitution itself There
must be no halt in the healthy construc-
tive course Of action which this nation
has elected TO pursue. and has steadily
pursued. during the last six years. as
shown both in the legislation of the Con-
sleSs and the administration OF the law
Dy the Department of Justice
still After Railroads.
The most vital need is in connection
with the railroads. As to these. in nv
judgment there should now be either a
national incorporation act or a law licens-
ing railway companies to engage in inter
state commerce upon certain conditions
The law should he so framed as 10 give
20 the Interstate Commerce Commission
power TO pass upon the future issue of
securities, while ample means should be
provided 10 enable the commission. when !
ever IN its judgment il is necessary 10 |
make a physical valuation of any rail- |
road. As I stated in my message TO Con-
gress year ago. railroads should be |
given power 10 enter into agreements |
subject to these. agreements being made !
public in minute detail and 10 the con- /
sent OF the Interstate Commerce Commits !
sion being first obtained Until the na-
ucnaI government assumes proper control /
or Interstate commerce. I'm the exercisa !
OF the authority it already possesses. il I
VIII be impossible either 10 give TO or n 1
get from the railroads fun Justice. The !
railroads and all other great corporations
viii DO well TO recognize that this control /
must come; the only question is as 20 /
what governmental body can most wisely !
exercise II. The courts will determine the /
limits within which the Federal authority /
can exercise it, and there will still ra /
the railway commission of that State. /
and the National Interstate Commerce |
Commission will work in harmony with /
the several State commissions. each within |
It's own province, TO achieve the desired /
end.
More Trust Legislation.
Moreover, in my judgment there sbould /
be additional legislation looking to the
proper control Of the great business con-
Germs engaged in interstate business. this
control to be exercised for their own
benefit and prosperity no less than for !
the protection Of investors and Of the
general public. As have repeatedly. said
IN messages 10 the Congress and else
where, experience has definitely shown
not merely the unwisdom but the futilitv
Of endeavoring to put a stop to all bust
ness combinations. Modern Industrial con-
iitions are such that combination Is not
only necessary but inevitable. It is so
IN the world Of business just as It is so
IN the world Of labor, and it is as idle
10 desire to put an end TO all corporations
% all big combinations Of capital. as 10
iesire to put an end 10 combinations of
abor. Corporation and labor union alike
have come 10 stay. Each if properly man
aged is a source of good and not evil.
W whenever In either there is evil it should
De promptly held 10 account: but If sho,,Id
'eceive hearty encouragement so long as
is properly managed
Aim Of His Policies.
As ! have said:
The aim Of the national governments
5 quite as much 70 favor and protect s
honest corporations. honest business mon
If wealth, as 10 bring to justice those in
ilviduals and corporations representing I
dishonest methods. Most certainly there {
VlH be no relaxation by the government
authorities In the effort to get at anv
'reat railroad wrecker-any man. who. by
lever swindling devices. robs investors :
'ppresses wage-workers. and does in Z
usuce 10 the general public. But anv :
'uch move as this Is In the interest of
ionest railway operators. Of honest cor 2
'oratons. and OF those who, when they :
invest their small savings in stocks end :
'onds. wish 10 be assured that these will +
epresent money honestly expended for ,
legitimate business purposes. To confer =
lpon the national government the power 4
or which ! ask would be check upon !,
'vercapitalization and upon the clever !;
ambiers who benefit by overcapitaIiza- .
ion. But 1t alone would mean an increase y
n the value, an increase in the safety of !
he stocks and bonds Of Iaw-abiding ! ,
onestly managed railroads. and would =
ender il far easier TO market their Sc :
urities. | believe in proper publicity. =
here has been complaint Of some of the =
Investigations recently carried on. but h
hose who complain should put the blame !,
here it belongs-upon the misdeeds n
'hich are done in darkness and not upon +,
ne Investigations which brought them to q
ght The administration is reSDonSib1a :