The Prescott daily news., 1910-08-31

neec = ~r at reasr IS very rarely needed. for fxi,E rates; but It is needed as the basis of honest capitalization.
 We have come to recognize that fran chises should never be granted except for l'r.A' time. and never without pror>r u~Nv's'on for compensation to the puh"c, It 's ny personal belief that the same kind and degree of control and sup, rvision which should be exercised over pubic service corporations should be extended also to combinations which control necessaries of life. such as meat. oil and coal. or which deal in them on an important scale.
 I believe that the officers and espe- cially the directors, of corporations, should be held personally responsible when any corporation breaks the law.
 Dealing With Combinations.
 Combinations in industry the result of an imperative economic law which can not be repealed by political legislation. The effort at prohibiting all combination has substantially failed. The way out lies not In attempting to prevent such combinations. but in completely controll- ing them in the interest of the public wei fare. For that purpose the Federal Blu reau of Corporations is an agency of the first importance. It's power and there fore its efficiency. well that of the Interstate Commerce Commission. should be largely increased. We have a right to expect from the Bureau of Corporations and from the Inter State Commerce Com mission a very high grade of public serv- ice. We should be as sure of the proper conduct of interstate railways and the proper management of interstate busi- ness as are now sure of the conduct and management of the National banks, and we should have as effective super vision in one case as in the other. The Hepburn act and the amendment to that act In the shape in which 1t finally passed congress at the last session represent long step In advance and we must go yet further
 There is & widespread belief among our people that under the methods of making tariffs which have hitherto ob- tained, the special interests are too in huential. Probably this Is true of both the big interests and the little interests. These methods have put a premium on selfishness, and naturally the selfish big interests have gotten more than the sell
 fish small interests. The duty of congress is to provide method by which the in- terest of the whole people shall be all that receives consideration. To this end there must be an expert tariff commits sion, wholly removed from the possibility of political pressure or of improper busi- ness influence Such commission can find out the real difference between cost of production. which is mainly the differ ence of labor cost here and abroad. As fast as its recommendations are made believe in revising one schedule at a time. A general revision of the tariff almost in- evitably leads to log-rolling, and the sub ordination of the general public interest to local and special interests.
 The absence of effective state. and especially National, restraint upon unfair money getting has tended to create small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power. The prime need is to change the condi- tions which enable these men to accumu- late power which 1t is not for the general welfare that they should hold or exercise. We grudge no man fortune which rep resents his own power and sagacity when exercised with entire regard to the well fare of his fellows. But the fortune must he honorably obtained and well used It is not even enough that 1t should have been gained without doin0 damage to the community We should permit 1t to be gained only so long as he gaining rep resents benefit to the community This, l know. implies policy of a far more active governmental interference with so- cial and economic conditions in this coun- try than we have yet had. but I think we have got to face the fact that such an increase in governmental control is now necessary.
 Income and Inheritance Taxes No man should receive dollar unless that dollar has been fairly earned. Every dollar received should represent dollars worth of service rendered The really big fortune, the swollen fortune. by the mere fact of its size, acquires qualities which direrentiate 1t in kind as we'll as in degree from what is possessed by men of relatively small means. Therefore believe fin a graduated income tax on big fortunes. and in another tax which is far more easily collected and far more eff fectiVe-a graduated inheritance tax on big fortunes. properly safeguarded against evasion, and increasing rapidly
 in amount with the size of the estate The people of the United States suffer from periodical financial panics to a de- gree substantially unknown among the other nations which approach us In finan- cial strength. There is no reason we should suffer what they escape It Is of profound importance that our financial system should be promptly investigated, and so thoroughly and effectively re- vised as to make it certain that hereafter our currency will no longer fail at criti- cal times to meet our needs.
 It is hardly necessary for me to repeat that I believe in an efficient army and navy large enough to secure for us abroad that respect which Is the surest guarantee of peace. Justice and fair deal Ing among nations rest principles identical with those which control justice and fair dealing among the individuals of which nations are composed; with the vital exception that each nation must do it's own partin international police work. National friendships, like those between men. must be founded on respect as we'll as on liking. on forhearance as well as upon trust. Tn all this it Is peculiarly the duty of the United States to set a good example
 Of conservation I shall speak more at lcnr ole l,ar tI.x.