Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-08-15
BUSINESS REGULATION

The Herald has always maintained that the govern
nnent has an inherent right to regulate any business. no
matter what its nature, in the interest of the general
public. That doctrine has been disputed. It is disputed
with reference to many lines OF business. It was fora
long time held that the government had no right to in
terfere with the private management Of any business
whatever. Seldom does one find a person now who en-
tertains that view. The transportation business is al
most universally regarded as an exception.
Matters reached a stage where it became apparent
that If the government did not regulate the railroads
the railroads would regulate the government. AS that
was not to be considered there was a search for facts
which would justify the government in undertaking
some sort Of railroad supervision. Many people found
it to their satisfaction in the fact that railroad corpora
tons are given the right to condemn private property.
Here was justification. The railroads had been granted
a special privilege, therefore the government which
granted that privilege could dictate the terms under
which it could be exercised. Hence government regula-
ton Of railroads was permissible.
Persons who go a little further believe that the gov
eminent has the right to supervise the activities of all
corporations, because corporations are creations of gov
ernnaent But many Of these draw the line. at govern
ment supervision OF a business that is owned and con-
Quoted by an individual.
To The Herald this seems like travelling a long way
round to get home. A nation has the right to exist. A
government may and must protect all its people in the
exercise of their rights. When, under private or cor
porate management, the people are deprived, or there
is a prospect that they will be deprived of any OF the
things necessary to their progress and happiness, wheth-
er it be transportation or steel rails, or coal, or wheat,
or cotton, the government has a right to step in and
create such conditions that the needs OF the people will
be met. It has this right, not because it has granted
special privileges to certain forms or business organiza-
ton, but because Of the duty which it owes to the peo-
pie This, we believe, lies at the very base Of govern
ment.
The war has brought about many changes in the
attitude of government toward business. For the pur-
poses OF the war the government is exercising a super
vision over a multitude Of things that it would not have
touched q year or two ago. We accept these things as
war measures. But they are done in accordance with
q principle which exists equally in peace or in war.
namely, that when the people need government super
vision in order that they may live their lives in comfort
and security. the government must supervise, no matter
who owns. The present emergency is that Of war. At
some other time it may be a generaf4crop failure, or a
gigantic strike. or the inability Of private business con-
Germs SO 70 correlate their work as to serve the public
adequateiy. In any case the government has a right to
step In.
the Eh existence existence Of the right to do a thing does not inn
ply that II is always expedient to do it. Ordinarily. in
the process OF our evolution,sth the ordinary laws Of bust.
nessy il untramineied, will be seif-operating, and win
result IN adequate service to the public for reasonable
compensasion. When that condition exists it is usually
wise for the government TO keep is hands on. But
the need which exists because OF the war NAV exist be-
cause Of any other reason. and it u because of the fact
of that need. ana not because there is any peculiar magic
ii The word WAR.