The Washington herald., 1908-03-26


"ln the modern business world combinations are
absolutely necessary.
The time has come when we should prepare for
revision of the tariff
These two sentences strike the key
notes OF President Roosevelrs brief mes
sage urging immediate action by Congress
on various legislative measures dear 10
the Executive heart. Neither proposition
is a novelty in economic discussion.
though both contain ample material for
partisan controversy The first has often
enough appeared in Mr.. Roosevelt's mes
sages, for he has always consistently OPP
posed the idea that governmental action
could prevent the Capitalization or CO.
ordination Of trade and industry. or that
il should be invoked to that end. Be
lieving that the economic forces working
toward what many people believe to be
malign consequences can be directed into
channels of public usefulness. Mr.. RoOse-
welt has steadily advocated the modihca-
ton OF the Sherman antitrust law. under
which every combination in restraint OF
trade is declared Illegal no matter what
legitimate purpose it may serve.
His present recommendations on this
head are more specific than heretofore.
They are given body and substance in
the bill prepared by the Civic Federation
and introduced by Mr.. Hepburn in the
House This measure Is long and compli-
Gated. and covers more ground than was
absolutely necessary in order 10 square
the Sherman act with the reasonable de-
essential feature is the bestowal Of au-
thOrity on the Bureau OF Corporations and
the Interstate Commerce Commission 10
pass on the legitimacy of contracts.
agreements. and combinations in restraint
OF trade. BY lodging this authority in
these governmental bodies. it is sought
10 exercise a certain indefinite measure
Of supervision over such railroad and in
dustrial combinations as voluntarily sub
nit their transactions TO governmental
inspection. How supervision Of this sort
will operate in practice can only be
learned by experience. Possibly it would
be well TO limit the scope of supervisory
powers by careful definition Of the
things 20 be permitted or prevented.
An important section OF the Hepburn
measure relieves combinations Of laborers
from the operation of the Sherman law
so far as it affects their right to strike
or TO make agreements with employers.
but it does not confer the right to boy-
cot, as some labor leaders think II
should On this point the President de-
clares that nothing should be done 10
legalize either a blacklist or a bovcott
that would be Illegal at common law
As this declaration is far from satisfac-
tory to organized labor as represented by
Mr. Gompers. it is evident that there Will
b. some feeling among union men thar
they are not getting the equivalent OF
the concessions granted capital by the
proposed changes in the Sherman law.
Concerning tariff revision. Mr.. Roose-
Welt adopts the plan exploited by the
leaders Of his party in Congress. Of in
stituting an inquiry into the subject OF
the tariff preparatory to the introduction
Of d tariff bin at an extra session OF the
Sixty-fTst Congress to be called immedi-
ately after the inauguration of the next
President, Such an inquiry. if conducted
in the right spirit, and rot merely for
campaign purposes, might prove useful
and it would undoubtedly expedite tariff
legislation IN the next Congress. Mr.
Roosevelt renews his recommendation of
last December for a removal Of the duties
on wood pulp and print paper-a recon-
mendaticn that ought to be needed at the
Capitol What the Republican party
needs is not so much tariff facts as tariff
convictions OF different order from those
which have hitherto animated its tariff
policy A bin putting print paper on
the free list would do more to convince
the public that tariff revision means some
thing than reams of discussion or months
Of investigation.