The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-19

tu'e uhu tle INCENTIVES u economic ell
fort
1 The fundamental conception in all tn,
new law making which has confronted US
| with many startling Innovations In its ex-
IRENE or change leaves private property
rights apparently untouched SO far as
ownership Is concerned. What II unques-
tlonably does Is to make tremendous
strides In the direction OF abolishing pri-
vate control by the owners OF property
which can In any way be related to the
vague ideals OF Social Justice" The
public utility theory Is being pushed to
the limit OF application to all business.
Tho notion seems to be respecting trading
and manufacturing corporations and
banks, as II has been OF railroads, that
private capital. having provided the in
struments and facilities for production
and distribution Of goods and comnodi-
ties. these Instruments and facilities have
become affected with a public interest
which Is paramount to every other inter-
est. Therefore II Is argued that II has
now become the right and duty of gov
eminent to seize and confiscate them
when necessary; but first as a preferen-
tial experiment to lay hold on them In be-
half Of the common good and to substitute
for private control a steadily increasing
measure OF public control. starting with
simple supervision and ending with prac-
tically complete management.
How these conceptions can be reconclled
with the idea OF private capital Is at least
difficult to understand, but II Is the con-
ception which Is animatlng political con-
duct No matter how sol!cfous for busi-
ness the Administrators verbal attitude
may be. the new legislation which Is
shaping for the regulation OF Interstate
commerce Is about as drastic as radical
Ism could desire. IL provides among
other things an interesting and appropri-
ate Illustration of the new conception OF
governmental relations to business In the
proposition for the establishment OF q
Government commission which Is to act
as shepherd for the flock of interstate cor
porations. We are told that the func-
lions OF this commission are To be In
formatory. advisory explanatory and tina.
II Is practically TO have no power except
the power Of investigation and inquiry.
No matter how innocuous and weak the
commission may be when constituted the
history Of all such governmental bodies
is that they acquire power as they go
along. Either they assume Il or Il "
lesislatively conferred upon them. but in
any case they get IT, One has only to
compare the Interstate Commerce Com
mission In the scope OF Its authority over
the railroads to-day with Its apparent
futility twenty years ago to realize what
this new trust commission Is likely TO be-
come.
Now all these manifestations Of politics
may be for the eventual good. but they are
all very new. The country has not had
much time to digest them and a consider
able amount Of caution Is required In
accepting current opinion as to the bear
ings OF politics on values. Wall Street,
for example, which has been INDUCING
SO much enthusiasm for President Wilson's
next communication to Congress, might
very well consider that the propaganda
OF prosperity which Is being politically
promoted does not square with political
deeds. Soft words do not butter pars-
nips to-day any more than they ever did.
The actual position OF business and poll
ties is something like the following Poll
ties. having seized business by the throat
y shaking IL ferociously while at the same
line and In most benevolent accents II Is
exhorting 1t to be prosperous. In effect
politics says TO business:
I'VE are not going to hurt you. We
are only going to set you free from an
unhallowed past for "a glorious future by
assuming your powers OF ownership. ieav-
ing you nothing but the duties and obli-
cations OF ownership, and by changing
all the conditions OF law and finance under
which YOU have worked. We are only
going TO change you from n private to a
public AFFAIR by tearing you apart and
turning you inside out and upside down
Ing responsibility for your obligations to
your owners and creditors. As that Is all
that We are going to do you can readily
see that you are going to be very pros
porous indeed. Even II this does hurt
you more than 1t hurts us. you must
remember that what We are doing is for
your own good
Now politics may know better than
business men what is good for business
which liz merely a convenient word descrip-
tive OF all the occupations and pursuits
by which people gain a livelihood. But
II is conceivable that the country will not
relish the radical zeal that Is character
izing the political reformation of business
The astonishing part OF all this IL the su-
pine attitude of business and financia!
interests. Opposition OF a conservative
sort to radical innovations and extraord,-
nary departures from public policy has
been all but lacking and has been at the
best feeble. Having yielded. therefore, to
the other compulsions of politics. II IL
perhaps natural that the business and
banking community should show IA dispo-
sition TO accept the coerc!ve exhortation
Of politics to take comfort and prepare
for profits. Nevertheless It may be sub
mitted that while American business seems
almost To put itself in the position OF say
ing to Its political dictator. Though ne
slay me. yet will I trust In him." such
spectacle Is more slgnlncant OF n time
Of terrorism than OF that confidence on
which the issues Of prosperity depend.
And II Is Il question II fear to-day 10
wholly on the side OF business
There Is note in the political chorus
which IL more than suggestive OF an un-
easy suspicion that politics has been over
doing the revolution In which II has been
engaged: a suspicion that II has gone too
far for the preservation OF enough pros
perity to return the revolutionaries to
office. This more than anything else
seems TO be the meaning OF the kind words
that are being administered with destruc-
tive deeds. and II the Establishments OF
business for Its own good are about TO
be suspended the corporate community
will in time recover its composure. II
castigation continues business may be-
come hardened TO II. In any event II 10
going to take time TO adjust CONNER
cial. manufacturing and financial endeavor
to altered circumstances. 1t IL going to
take time to discover how the business
organization will work under the new con-
ditions that have been imposed. and the
process IL more likely than not to contain
some unpleasant surprises.
Nobody wants new enterprise to be sus-
pended forever. or wishes business To be
anything but good and better. but Il Is not
as rule safe In any year to rely heavily
on the evolution Of January boom In tho
stock market. 1t has too often happened
that purchases made then In the enthusi-
asm OF the moment have to be carried into