The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-16
FINANCIAL REVIEW
OF THE PAST WEEK
Indications Of Political Awaken
ing at Washington to Threat
ening Dangers.
MODIFYING PROGRAMME
J PROGRAMME
An Opportunity to Furnish,
Business With Impulses
Toward Prosperity.

cHCOuTAklnE an lnOlCiIlOn lot NdlutS aS
any furnished in some time has Just
como from Washington. This 10 con-
tained in the signs. both at the White
House and at the Capitol. that the Ad-
ministration's comprehensive programme
Of wholesale projection OF Government
into the field OF interstate commerce Is
contracting under the discovery OF the
difficulties Of framing II into a body of
workable laws. There are undoubtedly
other matters which have played their
part in bringing Washington to a better
understanding Of tho task which the Ad-
ministration has set itself. but whatever
the causes tho effects are Of optimistic
import.
II private capital IL 70 be freed from
the apprehensions aroused by the recent
proposals for radical political control of
Interstate corporate activities a large re-
straint will be removed from new enter
prise. The swelling protests which bust
ness interests have been making against
the various and sundry bills that Congress
has been trying to shape IN elaboration
OF the Sherman law and supplementary
thereto have been proof of the degree 20
which business has been disturbed by the
political outlook In this respect. Further
more. there In contained in the latest
phase Of political revelation at Washing
ton an implication of even more favor
able augury for economic effort namely,
the possibility that a good deal OF a turn
about IN public policies Of unsettling sig
nificance Is already In process 1t il
true that developments OF the kind re-
ferred to belong chiefly in the category
OF negatively favorable Manifestations
bu: they could contain also positively
constructive factors, and in any case
the consequences could hardly fail to
he nrnDtlnnq for a restoration nf
rerty.
II seems that the scheme 10 eliminate
reason" from the construction Of the
sherman law is face to face with an
utter breakdown. The proposal involved
an attempt 10 bind the judiciary to an
application OF the strict letter OF the law
10y an elongated appendix OF Congress
sioral definitions declarative Of all the
unlawful practices IN the catalogue OF
monopoly. The attempt was doomed 10
failure from the beginning. but a different
situation for business is created II II is
abandoned than II a determination were
eNinced TO carry the attempt to the point
OF statutory enactment. A vista OF con-
stitutlonal conflict would be opened up
which would certainly invite inccndiary
political agitation and the outcome would
he anything nut salutary for business ana
financial activity. II Il becomes apparent
that the party at present In power con-
fesses both the impossibilty and the dan
ger Of trying to comply with an imagi-
nary mandate to make the sherman law
unreasonable 1t Is likely that the country
has seen for long time the last OF dema-
gogic propagandas directed to that end.
Nor is II only in the case Of the project
for upsetting the Supreme Courts dettn-
tons OF the Sherman law and substitute u L
therefor a series Of litera! constructions
by Congress that the Democratic party
SDllnn "a do a l. Ia,
1t set for itself In the programme of bust
ness legislation shaped by the proclama-
ton OF Administration policy IN President
Wilson's January message. How to pro-
hibit holding companies without precipi-
tating the corporate org anization OF trade
and industry into chaos OF confusion
how TO abolish interlocking directorates
without rendng apart tho very fabric OF
business, how TO set up d partial rcgula-
ton of prices without lettering the free
| play OF economic forces how TO interfere
with the control OF corporate affairs
! through stock ownership without striking
deadly blow at private property. how
| to supervise and regulate the issuance OF
securities without mourning d govern
mental responsibility conducting TO the OBJ
jectives Of sucialism--all these have posed
! themselves as questions which Congress
| has found 1t increasingly hard to supply
answers IN the task OF formulating IN,
! answers IN leSlsldtlFe measures.
OF all the definite features of tho bust
ness legislation programme the only on
which seems Immediately feasible Of sc
complishment is the plan for IA Fedora
| trades commission. Such a commission
equipped with reasonable powers of IN
vestigation, might prove TO be use
| full expansion of the bureau Of corpora
lions. established some timc since II
tho Department OF Commerce. !
seems TO recognize in 1t the promis
of 4 serviceable adjunct TO the Depa RI
ment of Justice In the enforcement of tn
! Sherman law and such other in'erstst
commerce acts AS may provide it witt
a field of administration. Many busi
ness interests have thought that sucl
commission might prove helpful fl
enabling men OF affairs to adjust thcl
concerns to the lines Of legality withou
| vexatous and costly resort through liti
CATION to court rulings.
There Is in all the foregoing surve,
| warranted by the advices from Washing
ton gratifying hint that sanity ma,
yet return 10 political councils II 4
hint corroborated In other directions
and one which would be strengthened II
instead OF trying to push through a dan
| gerous and destructive programme at al
hazards. the Administration party Shout,
| p''lht thdt tho IIol'tf procedure WAS u
postpone the enactment of most or al
of 1t at this time and to refer the oles
tons that have arisen to careful In
auiry by al executive commission or 10
Congressional committees Enough ha
certainly been learned by Congress L
show the enormous importance of the sub
ject on which II has been at work 10
the last two months with only negatlyel
valuable developments so far Referenc
OF the whole subject to special ,nuuir
should not DO regarded as a dilatory pre-
cedure. but ono entirely in line with tn
best legislative customs OF the age
And why should not the Administra
ton party make a rightabout In In
matter of referring an awkward and i'm
portant problem to particular invest
CATION instead OF proceeding ruthlessl
to enact laws on the theory that Cor
J gress, In its infinite wisdom. knows a
that there is to know In general and Is
: pecially knows what IL good for bushes
and for the popular welfare? Has no
tho time come for a good deal of ger
eral rightabout at Washington? Is nl
this the obvious Implication OF reccr
events and disclosures including the rev
Citations which have just been discussed
For example, IL President Wilson can as
J his party to reverse itself, as IL shoul,
in relation 10 free tolls for American shr
ping through the Panama Canal VIII
cannot the Administration reverse itself |
Its attitude toward the situation in Men