THE JJIOKMAU OKliUOMAX. WEDNESDAY, . DECEMBER 4. 1907.
PRESIDENT ROOSEVELT'S MESSAGE IS READ TO THE SIXTIETH CONGRESS
1
WASHINGTON. Doc. 5. -The annual
message of President Roosevelt was mail
today In both houses of Congress, and
practically no business was attempted
by cither body beyond listening to the
message. The galleries of both Senate
and Hnuso were crowded at the begin
ning of the session of each body, but as
the reading progressed the attendance
limlnished PomewhHt. In the main,
however, It was well maintained until
the last sentences of the document had
fallen from the lins of the official read
ers. Senators and members were sup
plied with printed, copies of the message,
and many of them followed the reading
clerk carefully. The reading consumed
about two and a quarter hours in both
houses.
The House did not follow up the lead
vt yesterday in the matter of introduc
tion of many bills, but :some measures
were presented. In the Senate so far no
bills have been introduced, but there is
scarcely a Senator whose desk Is not
well covered with Iheso documents, and
It is probable that the flood will break
out In that body tomorrow.
Speaker Cannon treated the House to
a surprise in naming the leadership of
l he committee on banking and currency.
This advance formation of that commit
tee led to the conclusion on the part of
manj; that It was his intention to press
financial legislation, but those who are
close to the Speaker tay that his only
purpose was to afford a depository for
petitions and letters bearing upon the
currency question.
The membership of the committee was
Increased by the addition of one Demo
crat, making seven members of that
party on it, instead of six, as during the
59th Congress.
This is in accordance with the request
of the minority loader, Williams, but it is
not to be taken as an indication that this
request will be complied with in all
other committees.
Both the Senate and House adjourned
Hlmost immediately after the conclusion
of the reading of the message. The House
adjourned until Thursday, when It is
probable that It will again adjourn for
tho week.
Following is the full text of the mes
sage: To the Senate and House of Representatives:
No nati n lias greater resources than
tours, and I flick It run bo truthfully said
that the citizens of no nation posses greater
energy and industrial ability. In uo na
tion are the fundamental business condi
tions sounder than In ours at this very
moment; and it is foolish, when such is the
rase, for peoph to hoard money instead of
keeping it In sound honks; for It is such
hoarding that Is the Immediate occasion
t( mony stringency. Moreover, as a rule,
Fhe business of our people is conducted with
honesty and probity, and tills applies alike
to farms r.nd factories, to railroads and
franks, to all our legitimate commercial en
terprises. 1
In any large body of men, however, there
ore certain to be some who are dishonest,
and If the conditions are such that these
men prosper or commit their misdeeds with
Impunity, thdr rxamplc Is a very evil thing
for the community. Where these men are
business men of great sagacity and of tem
perament both unscrupulous and reckless,
and where the conditions are such that they
act without supervblnn or control and at
first without effective check from public
opinion, they diudc many Innocent people
hi to making investments or embarking In
hinds of business that are really unsound.
When the misdeeds of these successfully
dishonest men are discovered, suffering
?omes not only upon them, but upon tho
Pnnocent men whom they have misled. Il
ls a painful awakening, whenever It oc
rurs: and, naturally, when it does occur
those who suffer are apt to forget that the
longer It was deferred the more painful it
would be.
In the effort to punish the guilty it l
F'oth wise and proper to endeavor so far
as possible to minimize the distress of those
who have been misled by the entity. Yet
It Is not possible to refrain because of such
distress from striving to put an end to the
misdeeds that are the tilt Imate causes of
the suffering, and. as a means to this end,
where possible to punish those responsible
for them. There may be honest differences
of outnton as to many governmental poli
cies; hut. nurcly there can be no such dif
ferences as to the need of unflinching per
severance in the war against successful dis
honesty. Quote I'rom Former Mesnoge.
In my message to the Congress on De
cember 5, nto.'t. I said:
If the folly of man mars the general well
being, then those who are Innocent of the
folly will have to pay part of t he penal tv
Incurred hy these who are guilty t.f th-j
tolly. A panic brought on hy the specula
tlve folly of part of the business communi
ty would hurt the whole business com
munity ; but such stoppage of welfare,
though It might be severe, would not bo
fasting. In the long run, the one vital fac
tor In the permanent prosperity of the
country is the high individual character of
the average American worker, the average
American citizen, no matter whether his
work be mental or manual, whether it be
farmer or wage-worker, business man or
professional man.
.In our Industrial and social system the
Interests of all men are no closely inter
( nined that In the Immense majority of
rases a straight -dealing man. who by bis
fticlency. by his It. genu! ty and Industry,
vent? fits himself, must also -benefit others.
Normally, the man of great productive ca-
(lactty, who becomes rich by guiding the
ahor of many other men does so hy en
abling them to produce more than they
could produce without his guidance; and
both he and they share In the benefit,
which comes also to the public at large.
The superficial fact that the sharing may
be unequal must never blind us to the un
derlying fact that there Is this sharing,
and that the benefit comes In some degree
to each man concerned. Normally, tho
vageworker. the man of smaM means, and
the average consumer, as well as the aver
age producer, are all alike helped by mak
ing conditions such that the man of ex
ceptional business ahlllty receives an ex
ceptional reward for his ability.
Re train Evil, Help Good Trusts.
Something can be done by legislation to
help the general prosperity ; but no such
help of a permanently beneficial character
tan be given to the less able and less for
tunate save as the results of a policy which
shall Inure to the advantage of all industri
ous and efficient people who act decently;
and this is only another way of saying that
any benefit which "comes to the less uble and
less foi tunale must of necessity come even
more to the more able and more fortunate.
1 f. therefore, the less fortunate man la
moved by envy of his more fortunate hroth
rr to strike ut Hie conditions tinder whit n
t hey have both, t hough unequally, pros
pered, the result will assuredly be that while
:1a mage muy come to the one struck at, it
will visit with an even heavier load the
one who st rikes the blow. Taken as a
n hole, wc must all go up or go dow n to
rn her.
Wt while not merely admitting, but In
fixing upon this. It Is also true that where
There Is no governmental restraint or super
vision some of th" exceptional men use their
energies, not In ways that are for the com
mon good, but in ways which tell against
this common good. The fortunes amassed
through corporate organization are now s j
targe and ves-t such power in those that
wield them, as to make It a matter of
nect sslty to give to the so ereign that Is,
to the Government, which represents the
people as a whole some effective power of
t-upervlion over their corporate use. In or
der to mure a healthy social and industrial
If" every big corporation should be held
rer.ioiijs1hlr by. and be accountable to. some
tovercign t.trong enough to control Its, con
duct. I am In no sense hostile to corpora
ions. This Is Jin age of combination, and
iny effoi t to prevent all combination will
I'V not only useless, but in the end vi
rions, because of the contempt for law
which the failure to enforce law Inevitably
pi truces. We should, moreover, recognize
;u coriiiMl and ample fashion the Immense
giwd effected by corporate agencies In a
country such as ours, and the wealth of
iniellect, energy and fidelity devoted to their
evvlcf, and therefore normally to the serv
ice of the public, by their officers and di
rectors. The corporation has come to stay,
hi-t a the trade union has come to stay.
Kach can do and has done great good. Kach
ihould e favored so long as It does good
Hut ea-rh rhould he sharply checked when
U act against law and Justice.
Asiwrt National sovereignty.
. The makers of our National Con
volution provided especially that the regu
lation of Interstate commerce should come
w lihin the ryhere of the general Govern
ment. The arguments in favor of their tak
ing this stand were even then overwhelm
ing. But thf y are fax stronger today. In
view of the enormous development of great
business agencies, usually corporate In form.
Experience has shown conclusively that it
uftiM to try to get any adequate regu
lation and supervision of these great cot -poratfons
by state action. Such regulation
and supervision can only be effectively ex
ercised by. a sovereign whose Jurisdiction
is coextensive with the Held of work of
the corporations that Is. by the National
Government. I believe that this regulation
and supervision can be obtained by the en
actment of lew by the Congress,
our steady aim should be by legislation,
cautiously and carefully undertaken, but
icsolutely persevered In. to assert the sov
ereignty of the National Government by
affirmative action.
This is only fit form an innovation. Tn
substance it is merely a restoration; for
from the earliest time such regulation of
Industrial activities has been recognized
in the action of the lawmaking bodies; and
oil that I propose is to meet the changed
conditions In such manner as will prevent
the common weal t h abdicating the power it
has always possessed, not only in this
country, but also in England before and
since this country became a separate
Nation.
It has been a misfortune that the Na
tional laws on this subject have hitherto
been of a negative or prohibit ive ra t her
than an affirmative kind, and still more
that t hey have in part sought to prohibit
what could not be effectively prohibited,
and have in part In their prohibitions con
founded what should be allowed and what
should not he allowed. It Is generally use
less to try to prohibit all restraint on com
pel It ion. whether this restraint be reason
able or unreasonable ; and where it is not
useless it Is generally hurtful. . . . Tho
successful prosecution of one device to
evade the law immediately develops another
devb e to accomplish the same purpose.
What Is needed is not sweeping prohibition
of every arrangement, good or bad, which
may tend to restrict competition, but such
adequate supervision and regulation as will
prevent any restriction of competition from
being to the detriment of the puhlic, as
wen as sucii supervision ana regulation as
will prevent other abuse 3 In no way con
nected with restriction of competition.
I have called your attention in these quo
tations to what T have already said because
I am satisfied that it is the- duty of the
National Government to embody in action
the principles thus expressed.
Control of K:iHronds.
No small part of the trouble t hat we
have comes from carrying to an extreme
the National virtue of self-reliance, of in
dependence In initiative and action. It Is
wise to conserve this virtue and to pro
vide for its fullest exercise, compatible with
seeing that liberty does not become a lib
erty to wrong others. Unfortunately, this
is the kind of liberty that the lack of all
effective regulation inevitably breeds. The
founders of the Constitution provided that
the National Government should have com
plete and sole control of interstate com
merce. Th:re was then practically no in
terstate business save such as was con
ducted by water, and this tr.e National Gov
ernment at once proceeded to regulate in
thoroughgoing end effective fashion. Con
ditions have now s?o wholly changed that
the Interstate commerce by water is in
significant compared with the amount that
goes by land, and almost all big business
concerns are now engaged in Interstate
commerce. As a. result. It can be but par
tially and Imperfectly controlled or regu
lated by the action of any one,of the sev
eral states; such action inevitably tending
to be either too drastic or else too lax, and
In either case ineffective for purposes of
Justice Only the National Government can
In thoroughgoing fashion exercise the need
ed control. This does not mean that there
should be any extension of Federal author
ity, for such authority already exists un
der the Constitution In amplest and most
far-reaching form, but it does mean that
there should be an extension of Federal
activity. This Is not advocating centraliza
tion. It is merely looking facts in the face,
and realizing that centralization in business
has already come and cannot be avoided or
undone, and that the public at large can
only protect Itself from" certain evil effects
of this business centralization by providing
better methods for the exercise of control
through the authority already centralized
In the National Government by the Con
stitution Itself.
Legalize Traffic Contracts.
There must be no bait in the healthy
constructive course of action which this
Nation has elected to pursue, and has stead
ily pursued, during the last six years, as
shown both in 1 he legislation of the Con
gress and the administration of the law by
the Department of Justice. The most vital
need :s In connection 'with the railroads.
As to these. In my Judgment there should .
now be either a National incorporation act
or a law licensing railway companies to
engage in interstate commerce upon cer
tain conditions. The law should be so
framed as to give to the -Interstate Com
merce Commission power to pass upon the
future Issue of securities, while ample
means should be provided to enable the
commission, whenever in its Judgment it Is
necessary, to make a physical valuation of
any railroad.
As i stated In my message to the Con
gress a year ago, railroads should be given
power to enter into agreements, subject to
these agreements being made public In
minutest detail and to the consent of the
Interstate Commerce Commission being first
obtained. Vntll the National Government
assumes proper control of Interstate com
merce, in the exercise of the authority it
already possesses. It will be impossible either
to give or to get from the railroads full
Justice. The railroads and all other great
corporations will do well to recognize that
this control must come; the only question
Is as to what governmental body can most
wisely exercise It. The courts will deter
mine the limits within which the Federal
authority can exercise it, and there will
still remain ample work within each state
for the railway commission of that state;
and the National Interstate Commerce Com
mission will work In harmony with the
several state commissions, each within Its
own province, to achieve the desired end.
Trusts Have Come to Stay.
Moreover, tn my judgment there should
be additional legislation looking to the
proper control of the great business con
cerns engaged in Interstate business, this
control to be exercised for their own benefit
and prosperity no less than foe the protec
tion of investors and of the general public.
As I have repeatedly said in messages to
the Congress and elsewhere, experience has
definitely shown not merely the unwisdom
but the futility of endeavoring to put a
stop to all business combinations. Modern
Industrial conditions are such that combi
nation is not only necessary but inevitable.
It is so in the world of business Just as it
Is so in the world of labor, and It Is as
idle to desire to put an end to all corpora
tions, to all big combinations of capital, as
to desire to put an end to combinations of
labor. Corporation and labor union alike
have come to stay. Each If properly man
aged is a source of good and not evil.
Whenever in either there Is evil, it should
be promptly held to account; but It should
receive hearty encouragement so long as
It is properly managed. It Is profoundly
immoral to put or keep on the statute books
a law. nominally in the Interest of public
morality, that really puts a premium upon
public immorality, by undertaking to forbid
honest men from doing what must be done
under modern business conditions, so that
the law itself provides that its own infrac
tion must be the condition precedent upon
business success. To aim at the accom
plishment of too much usually means the
accomplishment of too little, and often the
doing of positive damage. In my message
to the congress a year ago, in speaking
of the anti-trust laws. I said:
Defects In Sherman Law.
The actual working of our laws has shown
that the effort to prohibit all combination,
gocd or bad. is noxious where it to not in
effective. Combination of capital, Hke com
bination of labor. Is a necessary element In
our present Industrial system. It Is not pos
sible completely to prevent it; and if it were
possible, such complete prevention would do
damage to the body politic. What we need
is not vainly to try to prevent all combina
tion, but to secure ich rigorous and ade
quate control and supervision of the com
binations as to prevent their injuring the
public, or existing in such forms as inevitably
to threaten injury. ... It is unfortunate
that our present laws should forbid all com
blnatione Instead of sharply . discriminating
between thoee combinations which do good
and those combinations which do evil. . . .
Often railroads would like to combine for
the puriiose of preventing a big ehipper from
maintaining improper advantages at the ex
pense of small shippers and of the general
public. Such a combination. Instead of be
ing forbidden by law, should be favored.
. . . It Is a public evil to have on the
statute books & law Incapable of full enforce
ment, because both judges and Juries realize
that Us fuU enforcement would destroy the
business of the country; for the result Is to
make decent men violators of the Jaw against
tb.elr will and to put a premium on the be
havior of the willful wrongdoers.
Such a result in turn tends to throw the
decent man and the willful wrongdoer into
close association, and In the end to drag
down the former to the latter's level; for
the man who becomes a law-breaker In one
way unhappily tend to lose all respect for
law and to he willing to break !t in many
ways. No more scathing condemnation could
he vWtfd upon a law than Is contained in
the words of the Interstate Commerce Com
mission when. In commenting upon the fact
that the numerous Joint traffic aevciations
do -technically violate the law. they say: "The
decision of the Cntted States Supreme Court
in the Trans-Missouri case and the Joint
Traffic Association case has produced no
practical effect upon the railway operations
of the country. Such associations. In fact,
exist now as they did before these decisions,
and with the same general effect. In Justice
to all parties, we ought probably to add
that It Is difficult to 6ee how our interstate
rallwaya could be operated with due regard
to the interest of the shipper and the railway
without concerted action of the kind afforded
through these association.'
This means that the law as construed by
the Supreme Court Is such that the business
of the country can not be conducted without
breaking It.
As I have elsewhere said:
No Hostility to Corporations as Such.
All this U substantially what I have said
over and over again. Surely it ought not to
he necessary to say that It in no shape or
way represents any hostility to corporations
as such. On the contrary. It means a frank
recognition of the fact that combinations of
capital, like combinations of libor, are a
natural result of modern conditions and of
our National development. As far as In iny
ability lies my endeavor is and will bo to
prevent abuse of power bv either and to favor
hoth eo long as they do well. The aim of the
National Government Is quite as much to
favor and protect honest corporations, honest
business men of wealth, as to bring to jus
tice those Individuals and corporations rep
resenting dishonest method. Most certainly
there will be no relaxation by the Govern
ment authorities In the effort to get at any
great railroad wrecker any man who by
clever swindling devices robs investors,' op
presses wage-workers, and does injustice to
the general public. But any such move as
this Is in the Interest of honest railway op
erators, of honest corporations, and of those
who. when they invest their small savings
In stocks and bonds, wish to be assured that
these will represent money honestly expended
for legitimate business purposes. To confer
upon the National Government the power for
which I ask would be a check upon overcap
italization and upon the clever gamblers who
benefit by overcapitalizntion. But it alone
would mean an Increase in the value, an
Increase in the safety of the stocks and bonds
of law-abiding, honestly managed railroads,
and would render it far easier to market their
securities. I belte-v,e In proper publicity.
There has been complaint of some of the in
vestigations recently carried on. but those
who complain should put the blame where it
belongs upon the misdeeds which are done
In darknos and not upon the investigations
which brought them to light. The Admin
istration is responsible for turning on the
light, but it Is not responsible for what the
light showed. I aek for full power to he
given the Federal Government, because no
single state can by legislation effectually cope
with these powerful corporations engaged in
interstate commerce, and, while doing them
full justice, exact from them in return full
Justice to others. The conditions of railroad
activity, the conditions of our immense Inter
state commerce, are eueh as to make the
Central Government alone competent to exer
cise full supervision and control.
Most Corporations Honest.
The grave abuses In Individual cases of
railroad management In the past represent
wrongs not merely to the general public, but,
above all. wrongs to fair-dealing and honeet
corporations and men of wealth, because they
excite a popular anger and distrust which
from the very naturo of the case tends to
include in the sweep of its resentment good
and bad alike. From the standpoint of the
nubile I can not too earneptiy say that as
soon as the natural and proper resentment
aroused by these abuse becomes indiscrimi
nate and unthinking, it also becomes not
merely unwise and unfair, but calculated to
defeat the very ends which those feeling h.
have In view. There has been plenty of dis
honest work by corporal lone in the past.
There wll! not be the sitgntst iet-up in tne
effort to hunt down and punish every dis
honest man. But the bulk of our business is
honestly done. In the natural indignation
the neonle feel over the d'shonestv. It Is all
essential that they ehould not lose their
heads and get drawn Into an indiscriminate
raid upon all corporations.- all people of
welrh whether thev do well or ill. Out
of any such wild movement good will not
come, cannot come, ana never nas come.
On the contrary, the surest way to Invite
reaction Is to follow the lead of either dema
gogue or visionary In a sweeping assault upon
property values and upon public confidence,
which would work incalculable damage In
the buslnees world and would produce such
distrust of the agitator that in the revul
sion the dliruM would extend to honest men
who. In sincere and sane fashion, are trying
to remedy the evils.
Control, Not Abolish, Trusts.
The anti-trust law should not be repealed;
but It should be made both more efficient and
more in harmony with actual cond'tions. It
should be so amended as to forbid only the
kind of combination which does harm to the
general public, such amendment to be ac
companied by, or' to be an Incident of, a
grant of supervisory power to the Government
over these big concerns engaged in inter
state business. This should be accompanied
by provision for the compulsory publication
of accounts and the subjection of books and
papers to the inspection of the Government
officials. A beginning has already been made
for such supervision by the establishment of
the Bureau of Corporations.
The anti-trust law should not prohibit
combinations that do no Injustice to the pub
lic, still Hes those the existence of which
is on the whole of benefit to the public. But
even If this feature of the law were abol
ished, there would remain as an equally ob
jectionable feature the difficulty and delay
now Incident to its enforcement. The Gov
ernment must now submit to Irksome and
repeated delay before obtaining a final de
cision of the courts upon proceedings in
stituted, and even a favorable decree may
mean an empty victory. Moreover, to at
tempt to control these corporations by law
suits meai.s to impose upon both the De
partment of Justice and the courts an Impos
sible burden; It is not feasible to carry on
more than a limited number of such suits.
Such a law to be really effective must of
course be administered by an executive body,
and not merely by means of lawsuits. The
design should be to prevent the abuses in
cident to the creation of unhealthy and Im
proper combinations, Instead of waiting until
they are in existence and then attempting to
destroy them by civil or criminal proceedings.
Trusts We Should Prohibit.
A combination should not be tolerated if
it abuse the power acquired by combination
to the public detriment. No corporation or
assoclation of any kind should be permit
ted to engage in foreign or interstate com
merce that Is formed for the purpose of,
or whose operations create, a monopoly or
general control of the psoduction, sale, or
distribution of any one or more of the
prime necessities of life or articles of gen
eral use and necessity. . Such combinations
are against public policy; they violate the
common law", the doors of the courts are
closed to those who are parties to them,
and I believe the Congress can close the
channels of interstate commerce against
them for Its protection. The law should
make Its prohibitions and permissions as
clear and definite as possible, leaving the
least possible room for arbitrary action, or
allegation of such action, on the part of
the executive, or of divergent Interpreta
tions by the courts. - Among the points to
be aimed at should be the prohibition of
unhealthy competition, such as by render
ing service at an actual loss for the pur
pose of crushing out competition, the pre
vention of Inflation of capital, and the pro
hibition of a corporation's making .exclusive
trade with itself a condition of having any
trade with itself. Reasonable agreements
between, or combinations of, corporations
should be permitted, provided they are first
submitted to and approved by some appro
priate body. '
Federal Charters for Corporations.
The Congress has the power to charter
corporations to engage in Interstate and for
eign commerce, and a general law can be
enacted under the provisions of which ex
isting corporations could take out Federal
charters and new Federal corporations could
be created. An essential provision of such
a law should be a method of predetermining
by some Federal board or commission
whether the applicant for a Federal
charter was an association or combination
within the restrictions of the Federal" law.
Provision should also be made for com
plete publicity in all matters affecting tho
public and complete protection to the in
vesting public and the shareholders In the
matter of Issuing corporate securities. If
an Incorporation law is not deemed ad
visable, a license act for big interestate cor
porations might be enacted; or a combina
tion of the two might be tried. The super
vision established might be analogous to that
now exercised over National banks.- At
least, the antitrust act should be supple
mented by specific prohibitions of the meth
ods which experience has shown have been
of most service in enabling monopolistic
combinations to crush out competition. The
real owners of a corporation, shoulbe com
pelled to do business In their own name.
The right to hold stock in other corpor-
I- at Ions phould hereafter be denied to Inter
state corporations, unless on approval by
the proper Government officials, and a pre
requisite to such approval should be the list
ing with the Government of all owners and
btockholders, both by the corporation own
ing such stock and by the corporation in
which uch stock is owned.
"To confer upon the National Government,
in connection with the amendment I advo
cate in the antitrust law, power of super
vision over big business concerns engaged
in interstate commerce, would benefit them
as It has benefited the National banks. In
the reeent business crisis It Is noteworthy
that the Institutions which failed were insti
tutions which were not under the supervision
and control of the National Government.
Those which were under National control
stood the test.
National control of the kind above advo
cated would be to the benefit of every well
managed railway. From the standpoint of
the public there is need for additional
tracks, additional terminals, and improve
ments in the actual handling of the rail
roads, and all this as rapidly as possible.
Ample, safe, and speedy transportation fa
cilities are even more necessary than cheap
transportation. Therefore, there is need, for
the Investment of money which will pro
vide for all these things while at the same
time securing as fap as is possible better
wages and shorter hours for their employes.
Therefore, while there must be- Just and
reasonable regulation of rates, we should
be the first to protest against any arbi
trary and unthinking movement to cut
them down without the fullest and most
careful consideration of all interests con
cerned and of the actual needs of the situ
ation. Only a special body of men acting
for the National Government under au
thority conferred upon it by the Congress
Is competent to pa38 Judgment on such a
matter.
K fleets of Food Inspection.
Those who fear, from any reason, the ex
tension of Federal activity will do well
to study the history not only of the Na
tional hanking act but of the pure food
law, and notably the meat Inspection law
recently enacted. The pure-food law was
opposed so violently that its passage was
delayed for a decade: yet it has worked
unmixed and immediate good. The meat
Inspection law was even more violently as
sailed; and the same men who now de
nounce the attitude of the National Govern
ment In peeking to oversee and control the
workings of interstate common larrlers and
business concerns, then asserted that we
were "discrediting and ruining a great
American industry." Two years have not
elapsed, and already It has become evident
that the great benefit the law confers upon
the public is accompanied by an equal
benefit to the reputable packing establish
ments. The latter are better off under the
law than they were without It. The bene
fit to Interstate common carriers and busi
ness concerns from the legislation I advo
cate would be equally marked.
Incidentally, in the passage of the pure
food law the action of the various state food
and jiairy commissioners showed in strik
ing fashion how much good for the whole
people tesults from the hearty co-operation
of the Federal and state officials in secur
ing a given reform. It is primarily to the
actitn of these state commissioners that
we owe the enactment of this law; for they
aroused the people, first to demand the en
actment and enforcement of state laws on
the subject, and then the enactment of the
Federal law, without which the state law:
were largely ineffective. There must be the
closest co-operation between the National
and state governments in administering
these laws.
Need of Elastic Currency.
In my message to the Congress a year
ego I spoke as follows of the currency:
I especially call your attention to the con
dition of our currency laws. The National
bank act has ably served a great purpose
In aiding the enormous business development
of th country, and within ten years there
has been an Increase In circulation per
capita from $21.41 to $3.08. For several
years evidence has been accumulating that
additional legislation Is needed. The re
currence of each crop season emphasizes
the defects of the present laws. There must
soon be a revision of them, because to
leave them :is they are means to incur
liability of business disaster. Since your
body adjourned there has been a fluctua
tion in the interest on call money from 2
per cent to 30 per cent, and the fluctuation
was even greater during the preceding six
months. The Secretary of the Treasury had
to step in and by wise action put a stop
to the most violent period of oscillation.
Even worse than such fluctuation is the
advance in- commercial rates and the un
certainty felt in the sufficiency of credit
even at high rates. All commercial inter
ests suffer during each crop period . .Ex
cessive rates for call money in New York
attract money from the interior banks into
the speculative field. This depletes the fund
that would otherwise be available for com
mercial uses, and commercial borrowers
are forced to- pay abnormal rates, so that
each Fall a tax, in the shape of increased
Interest charges, is placed on the whole
commerce of the country.
The mere statement of these facts show
that our present system is seriously defec
tive. There Is need of a change. Unfortu
nately, however, many of the proposed
changes must be ruled from con
sideration because they are complicated, are
not easy of comprenension. and tend to dis
turb existing rights and interests. We must
also rule out any plan which would ma
terially impair the value of the United States
2 per cent bonds now pledged to secure cir
culation, the issue of which was made under
conditions peculiarly creditable to the Treas
ury. I do not press any especial plan. Vari
ous plans have recently been proposed by
expert committees bankers. Among the
plans which are possibly feasible and which
certainly should receive your consideration
is that repeatedly brought to your attention
by the present Secretary of the Treasury, the
essential features of which have been ap
proved by many prominent bankers and
business men. According to this plan Na
tional baiiks should be permitted to issue
a specified proportion of their capital in
notes of a given kind, the issue to be taxed
at so high a rate as to drive the notes back
when not wanted In legitimate trade. This
plan would not permit the issue of currency
to give banks additional profits, but to meet
the emergency presented by, times of strin
gency.
Not Bankers Alone Interested.
I do not say that this Is the right system.
I only advance it to emphasize my belief
that there is need for the adoption of some
system which shall be automatic and open
to all sound banks, so as to avoid all pos
sibility of discrimination and favoritism.
Such a plan would tend to prevent the
spasms of high money speculation which
now obtain In the New York market; for at
present there Is too much currency at cer
tain seasons of the year, and its accumula
tion at New York tempts bankers to lend it
at low rates for speculative purposes, where
as at other times when the crops are being
moved there is urgent need for a large but
temporary Increase in the currency supply.
It must never be forgotten that this question
concerns business men generally quite as
much as bankers; especially is this true of
stockmen, farmers and business men in the
West ; for at present at certain seasons of
the year the difference in interest rates be
tween the East and the West is from 6 to
10 per cent, whereas in Canada the corre
sponding difference is but 2 per cent. Any
plan, must, of course, guard the interests
of Western and Southern bankers as care
fully as it guards the interests of New York
or Chicago bankers, and must be drawn
from the standpoints of the farmer and the
merchant no less than from the standpoints
of the city banker and the country banker.
Cannot Prevent Folly.
I again urge on the Congress the need of
Immediate attention to this matter. We
need a greater elestlclty In our currency ;
provided, of course, that we recognize the
even greater need of a safe and secure cur
re nee y There must always be the most
rigid examination by the National authori
ties. Provision should be made for an
emergency currencv. The emergency issue
should, of course, be made with an effective
guaranty, and upon conditions carefully pre
scribed by the Government. Such emer
gency' issue must be based on adequate se
curities approved by the Government, and
must be issued under a heavy tax. This
would permit currency being issued when
the demand for it was, urgent, while se
curing its retirement as the demand fell off.
It Is worth Investigating to determine
whether officers and directors of National .
banks should ever be allowed to loan to
themselVes. Trust companies should be
subject to the same supervision as banks;
legislation to this effect should be enacted
for the District of Columbia and the terri
tories. Yet we must also remember that even the
wisest legislation on the subject can only
accomplish a certain amount. No legisla
tion can by any possibility guarantee the
business community against the results of
speculative folly any more than it can
guarantee an Individual against the results
of his extravagance. When an individual
mortgages his house to buy an automobile
he invites disaster; and when wealthy men,
or men who pose as such, or are unscrupu
lously or foolishly eager to become such, in
dulge in reckless speculation especially if
it is accompanied by dishonesty they jeop
ardize not only their own future but the fu
ture of all their innocent fellow-citizens, for
they expose the whole business community
to panic and distress.
Demand for Tariff Revision.
The income account of the Nation Is in a
most satisfactory condition. For the six
fiscal years ending with the first of July
last, the total expenditures and revenues of
the National Government, exclusive of the
postal revenues and expenditures, were, in
round numbers, revenues, $3,405,000,000 and
expenditures, $3.273. 000. OOh. The net excess
of income over expenditures, including in tne
latter the $30,000,000 expended ror the
Panama Canal, was $100,000,000 for the six
years, an average of about $31,000. 000 a
year. This represents an approximation be
tween Income and outgo which it would be
hard to Improve. The satisfactory working
of the present tariff law 'has been chiefly re
sponsible for this excellent showing. Never
theless, there Is an evident and constantly
growing feeling among our people that the
time Is rapidly approaching when our system
of revenue legislation must be revised.
This country is definitely committed to the
protective system and any effort to uproot
It could not but cause widespread indus
trial disaster In other words, the principle
of the present tariff law could not with wis
dom be changed. - But In a country of such
phenomenal growth as ours It is probably
well that every dozen years or so the tariff
laws should be carefully scrutinized so as
to see that no excessive or Improper bene
fits are conferred thereby, that proper reve
nue Is provided, and that our foreign trade
Is encouraged. There must always be as a
minimum a tariff which will not only allow
for the collection of an ample revenue, but
which will at least make good the difference
in cost of production here and abroad; that
Is. the difference in the labor cost here and
abroad, for the well-being of the wage
worker must ever be a cardinal point of
American policy. The question snould be
approached purely from a business stand
point; both the time and the manner of the
change being such as to arouse the minimum
of agitation and disturbance in the business
world, and to give the least play for selfish
and factional motives. The sole considera
tion should be to see that the sum total of
changes .represent tho putt lie good. This
means that the subject cannot with wisdom
be dealt with in the year preceding a Presi
dential election, because as a matter of fact
experience has conclusively shown that at
such a time it is impossible to get men to
treat it from the standpoint of the public
good. In my Judgment the wise time to
deal with the matter is immediately after
such election.
Income and Inheritance Tax.
"When our tax laws are revised the ques
tion of an Income tax and an inheritance
tax should receive the careful attention of
our legislators. In my Judgment hoth of
these taxes should be part of our system of
Federal taxation. I speak diffidently about
the Income tax because one scheme for an
income tax was declared unconstitutional by
the Supremo Court; while in addition it is
a dlfffcult tax to administer In Its practical
working, and great care would have to be
exercised to see that It was not evaded by
tbe very men whom It was most desirable
to have taxed, for If so evaded it would,
of course, be worce than no tax at all; as the
least desirable of all taxes Is the tax whlen
bears heavily upon the honest as compared
with the dishonest man. Nevertheless, a
graduated Income tax of the proper type
would be a desirable feature of Federal tax
ation, and it -Js to be hoped that- one may
be devised which the Supreme Court wllf
declare constitutional. The inheritance tax,
however. Is both a far better method of tax
ation and far more important for the pur
pose of having the fortunes of the country
bear in proportion to their increase in size a
corresponding increase and burden of taxa
tion. The Government has the absolute right
to decide as to the terms upon which a man
shall receive a bequest or devise from an
other, and this point in the devolution of
property is especially appropriate for the
imposition of a tax. Uaws imposing such
taxes have repeatedly been placed upon the
National statute books and as repeatedly de
dared constitutional by the courts; and
these laws contained the progressive prin
ciple, that is, after a certain amount is
reached the bequest or gift, In life or death.
Is increasingly burdened and the rate ot
taxation is increased In proportion to the
remoteness of blood of the man receiving
the bequest.
These principles are recognized already In
the leading civilized nations of the world.
In Great Britain all the estates worth $5000
or less are practically exempt from death
duties, while the Increase is such that when
an estate exceeds $5,000,000 in value and
passes to a distant kinsman or stranger in
b lood the govern ine n t rec e I ves all to id an
amount equivalent to nearly a fifth of the
whole estate. In France so much of an in
heritance as exceeds $ 10,000,000 pays over a
fifth to the state If it passes to a distant
relative. The German law is especially inter
esting to us because it makes the inheritance
tax an imperial measure while allotting to
the individual states of the empire a portion
of the proceeds and permitting them to im
pose taxes in addition to those imposed by
the Imperial Government. Small Inheritances
are exempt, but the tax Is so sharply progres
sive that when the Inheritance is still not
very large, provided it is not an agricultural
or a forest iHnd, It is taxed at the rate of
25 per cent if It gots to distant relatives.
There Is no reason why in the United States
the National Government should not impose
Inheritance taxes In addition to .those im
posed by the states, and when we last had
an inheritance tax about one-half of the states
levied such taxes concurrently with the Na
tional Government, making a combined max
imum rote, in some cases as high as 25 per
cent.
Reason for Graduad Taxes.
The French law has one feature which is
to be heartily commended. The progressive
principle is so applied that each higher rate
is imposed only on the excess above tne
amount subject to the next lower rate: so
that each Increase of rate will apply only to
a certain amount above a certain maximum.
The tax should. If possible, be made to bear
more heavily upon those residing without the
country than within it. A heavy progressive
tax upon a very large fortune Is in no way
such a tax upon thrift or industry as a like
tax would be on a small fortune. No ad
vantage comes either to the country as a
whole or to the individuals Inheriting the
money by permitting the transmission in their
entirety ot the enormous fortunes which would
be affected by such a tax; and as an incident
to Its function of revenue rakflng, Buch a tax
would help to preserve a measureable equality
of opportunity for the people of the genera
tions growing to manhood.
We have not the slightest sympathy with
that socialistic Idea which would try to put
laziness, thriftlessness and inefficiency on a
par with industry, thrift and efficiency; which
would strive to break up not merely private
property, but what is far more important, the
home, the chief prop upon which our whole
civilization, stands. Such a theory, if ever
adopted, would mean the ruin of the entire
country a ruin which would bear heaviest
upoo the. weakest, upon those least able to
shift for themselves. But proposals for- leg
islation such as this herein advocated are di
rectly opposed to this class of socialistic
theories. Our aim is to recognize what Lin
coln pointed out: The fact that there are
some respects in which men are obviously not
equal; but also to insist that there should
be an equality of self-respect and of mutual
respect, an equality of rights before the law,
and at least an approximate equality in tho
conditions under which each man obtains the
chance to show the stuff -that Is in him when
compared to bis fellows.
Obstacles to Enforcing Law.
A few years ago there was loud complaint
that the Jaw could not be Invoked against
wealthy offenders. There is no such com
plaint now. The course of the Department of
Justice during the last few years has been
such as to make it evident that no man
stands above the law, that no corporation Is
so wealthy that it can not be held to ac
count. The Department of Justice has been
as prompt to proceed against the wealthiest
malefactor whose crime was one of greed and
cunning as to proceed against tho agitator
who incites to brutal violence. Everything
that can be done under the existing law. and
with the existing state of public opinion,
which so profoundly Influences both the courts
and Juries, has been done. But the laws
themselves need strengthening in more than
one important point; they should be made
more definite, so that no honest man can be
led unwittingly to break them, and so that
the real wrongdoer can be readily punished.
Moreover, there must be the pubfic opinion
back of the laws or the laws themselves will
be of no avail. At present, while the average
Juryman undoubtedly wishes to see the trusts
broken up, and Is quite ready to fine the
corporation Itself, he is very reluctant to
find the facts proven beyond a reasonable
doubt when It comes to sending to jail a
member of the business community for in
dulging In practices which are profoundry
unhealthy, but which, unfortunately, the
business community has grown to recognize
as well-nigh normal. Both the present con
dition of the law and the present temper
of juries renders It a task of extreme diffi
culty to get at the real wrongdoer in any
such case, especially by Imprisonment. Yet
It Is from every standpoint far preferable to
punish the prime offender by imprisonment
rather than to fine the corporation, with the
attendant damage to stockholders.
The two great evils in the execution of
our criminal laws today are sentimentality
and technicality. For the latter the remedy
must come from the hands of the legisla
ture, the courts and the lawyers. The other
must depend for its cure upon the gradual
growth of a sound public opinion which
shall insist that regard for the law and the
demands of reason shall control all other
Influences and emotions in the Jury box.
Both of these evils must be removed or pub
lic discontent with the criminal law will
continue.
Abuse of Injunction.
Instances of abuse in the granting of in
junctions in labor disputes cc-Allnue to oc
cur, and the resentment In the minds of
those who feel that their rights are being in
vaded and their liberty of. action and of
speech unwarrantably restrained continues
likewise to grow. Much of the attack on
the use of the proress of injunction is
wholly without warrant; but I am con
strained to express the belief that for some
of it there Is warrant. This question is
becoming more and more one of prime im
portance, and unless the courts will them
selves deal with it in effective manner, it
is certain ultimately to demand some form
of legislative action. it would be most un
fortunate for our social welfare if we should
permit many honest and law-abiding citi
zens to feel that they had just cause for re
garding our courts with hostility. I earnestly
commend to the attention of the Congress
thin matter, so that some way may be de
vised which will limit the abuse of injun
tions and protect those rights which from
time to time it unwarrantably invades.
Moreover, discontent is often expressed with
the use of . the process of Injunction by the
courts, not only in labor disputes, hut where
state laws are concerned. I refrain from
discussion of tills question as I am Informed
'that it will soon receive the consideration of
the Supreme Court.
The Federal courts must of course , decide
ultimately what are the respective spheres
of state and Nation in connection with any
law. estate or National, anil they must decide
definitely and finally in matters affecting in
dividual citizens, not only as to the rights
and wrongs of labor, but as tn the rights and
wrongs of capital; and the National Govern
ment must always see that the decision of
the court is put Into effect. The process of
injunction Is an essential adjunct of the
court's doing its work veli; and as preventive
measuree are always better than remedial,
the wise use of this process is from every
standpoint commendable. Hut w here It is
recklessly or unnecessarily used, the abuse
should be censured, above all by the very
men who are properly anxious to prevent any
effort to shear the courts of this necessary
power. The court's decision must be final ;
the protest is only against the conduct of
Individual judges in needle-siy anticipating
such final decision, or in the tyrannical use
of what is nominally a temporary injunction
to accomplish what is in fact a permanent
decision.
Prevent Railroad Wrecks.
The loss of life and limb from railroad
accidents In this country has become ap
palling. It is a subject of which the Na
tional Government should take super vislch.
It might be well to begin by providing for
a Federal inspection of Interstate rail
roads somewhat along the lines of Federal
inspection of steamboats, alt hough not go
ing so far; perhaps at first all that it would
be necessary to have would be some officer
whose duty would be to investigate all
accidents on interstate railroads and re
port in detail the causes thereof. Such an
officer should make It his business to get
into close touch with railroad operating men
so as to become thoroughly familiar with
every side of the question, the idea being
to work along the lines of the present steam
boat Inspection law.
Inabilities of Employers.
The National Government should be a
model employer. It Fhould demand the
highest quality of service from each of its
employes and It should care for all of them
properly In return. Congress should adopt
legislation providing limited but definite
compensation for accidents to all workmen
within the "scope of the Federal power, in
cluding employes of navy -yards and arse
nals. In other words, a model employers'
liability act, far-reaching -and thorough
going, should be enacted which should apply
to all positions, public and private, over
which the National Government has juris
diction. The number of accidents to wage
workers, including those that are prevent
able and those that -are not, has become
appalling in the mechanical, manufacturing
and transportation operations of the day.
It works grim hardship to the ordinary
wage-worker and his tamily to have the
effect of such an accident fall solely upon
him; and, on the other hand, there arc
whole classes of attorneys who exist only
by Inciting men who may or may not have
been wronged to undertako suits for negli
gence. As a matter of fact a suit for negligence
is genorally an inadequate remedy for the
person injured, while it often causes alto
gether disproportionate annoyance to the
employer. The law should be made such
that the payment for accidents by the em
ployer would be automatic Instead of being
a matter for lawsuits. Workmen should
receive certain and definite compensation for
all uccldents in industry irrespective of neg
ligence. The employer is tho agent of the
public and cn his own responsibility and
for his own profit he serves the public.
When he starts in motion agencies which
create risks for others, he should take all
the ordinary and extraordinary risks in
volved; and the risk he thus at the moment
assumes will ultimately be assumed, as it
ought to be, by the general public. Only in
this way can the shock of the accident be
diffused, instead of falling upon the man or
woman least able to bear it, as Is now the
case. The community at large should share
the burdens as well at the benefits of in
dustry. By the proposed law, employers
would gain a desirable certainty of obli
gation and get rid of litigation to deter
mine It, while the workman and his family
would be relieved from a crushing load.
With such a policy would come Increased
care and accidents would be reduced in
number.
The National laws providing for employ
ers' liability on railroads engaged In inter
state commerce and for safety appliances,
as well as for diminishing the hours any
employe of a railroad should be permitted
to work, should all be strengthened wherever
in actual practice they have shown, weak
ness; they should be kept on the statute
books in thoroughgoing form.
Bring Law I'p to Inte.
The constitutionality of the em ploy era'
liability act passed by the preceding Con
gress has been carried before the courts.
In two Jurisdictions the law has been de
clared unconstitutional, and in three juris
dictions its constitutionality has been af
firmed. The question has been carried to
the Supreme Court, the case has been
heard by that tribunal, and a decision Is
expected at an early date. In the event
that the court should affirm the constitu
tionality of the act. I urge further legis
lation along the lines advocated In my
message to the preceding Congress. The
practice of putting the entire burden of lo&s
to life or limb upon the victim or the vic
tim's family is a form of social injustice In
which the United States stands In unen
viable prominence.
In both cur Federal and state legislation
we have, with few exceptions, scarcely gone
farther than the repeal of the fellow-servant
principle of tho old law of liability,
and In some of our states even this slight
modification of a completely outgrown prin
ciple has not yet been secured. The legis
lation of the rest of the industrial world
stands out In striking contrast to our
backwardness in this respect. Since 13U5
practically every country of Europe, to
gether with Great Britain, New Zealand.
Australia, British Columbia, and the Cape
of Good Hope has enacted legislation em
bodying In ene form or another the com
plete recognition of the principle which
places upon the employer the eniire trade
risk in the various lines of industry. I urge
upon the Congress the enactment of a law
which will at the same time bring Federal
legislation up to the standard already
established by all tho European countries,
and which will serve as a stimulus to the
various states to perfect their legislation
In this regard.
Extend Eight-Honr Law.
The Congress should consider the exten
sion of the eight-hour day. The constitu
tionality of the present law" has recently
been called Into question, and the Supreme
Court has decided that the existing legisla
tion Is unquestionably within the powers of
the Congress. The principle of the eight
hour dty shculd as rapidly and as far as
practicable be extended to the entire woik
carried on by the Government; and the
present law should be amended to embrace
contracts on those public works which the
present wording of the act has been con
strued to exclude. The general Introduc
tion of the eight-hour day should be tht
goal toward which we should steadily tend,
and the Government should set the ex
ample in this respect. .
Investigate Inbor ltihputes.
Strikes and lockouts, with their attendant
loss and suffering, continue to Increase.
For the five years ending December 31, 1105,
the number of strikes was greater than
those In any previous ten years and was
double the number in the preceding five
years. These figures indicate the Increas
ing need of providing somo machinery to
deal with this class of disturbances in tbe
interest alike of the employer, the employe,
and the general puhlic. I renew my pre
vious recommendation that the Congress
favorably consider the matter of creating
the machinery for compulsory investigation
of such industrial cont roversles as are of
sufficient magnitude and of sufficient con
cern to the people of the country as a whole
to warrant the Federal Government in tak
ing action
The need for some provision for such in
vestigation was forcibly illustrated during
the p.tst Summer. a, strike of telegraph
operators seriously Interfered wtlh tel.
graphic communication, causing great dam
age to business interests and serious in
convenience to the general public. Appeals
were made to me from many parts of the
country from city councils, from boards of
trade from chambers of commerce, and
from labor organizations, urging that steps
be taken to terminate the strike. Kvery
thtng that could with any propriety be done
by a representative of the Government was
done, without avail, and for weeks the pub
lic stood by and suffered without recourse
of any kind. Had the machinery existed
and had there been authority for compul
sory investigation of the dispute, the pub
lic would have been placed in possession of
the merits of the controversy, and public
opinion would probably have brought about
a prompt adjustment.
Kach successive step creating machinery
for the adjustment of labor difficulties must
be taken with caution, but we should en
deavor to make progress in this direction.
The provisions of the act of Isns creating
the chairman of the Interstate Commerce
Commission and the Commissioner of Labor
a board o mediation in controversies be
tween interstate railroads and their em
ployes has, for the first time, been subjected
to serious t-sts within the past year, and
the wisdom of the experiment has been fullv
demonstrated. Tbe creation of a board for
compulsory investigation in cases where
mediation falls and arbitration is rejected
Is the next logical step in a progressive
programme.
J,abor of Women and Children.
It is certain that for some time to come
there will be a constant increase absolutely,
and perhaps relatively, bf those among our
citizens who dwell In cities or towns of
some size and who work for wages. ThU
means that there will be an ever-increasing
need to consider the problems Inseparable
from a great Industrial civilisation. Wheie
an Immense, and complex business, especially
in those branches relating to manufacture
and transportation, is transacted by a large
number of capitalists who employ n very
much largVr number of wage-earners, the
former tend more and more to combine Into
corporations and the latter Into unions. The
relations of the capitalist and wage-worker
to one another, and of each to tho general
public, are not always easy to adjust; and tj
put them and keep them on a. satisfactory
basis is one of the most important and on
of the most delicate tasks before our whole
civilization. Much of the work for the ac
complishment of this end must be done by
the Individuals concerned t hemselves,
whether singly or in combination ; and the
one fundamental fact that must never bo
lost track of is that the character of tho
average man, whether he be a man of means
or a mm who works with his hands, is the
most important factor in solving the prob
lem aright. But it Is almost equally Im
portant to remember that without good laws
It Is also Impossible to reach the proper
solution. It is idle to hold that without
good laws evils such as child labor, as the
over-working of women, as the failure to
protect employes from loss of life or limb,
can be effectively reached, any more than
the evils of rebates and Btock-wateting can
be reached without good laws. To fall to
stop th-se practices by legislation means to
force honest men into them, because other
wise the dishonest who surely will take ad
vantage'of them will have everything their
own way. Tf the states will correct these
evils, well and good; but the Nation must
stand ready to aid them.
No question growing out of our rapid and
complex industrial development is more im
portant than that of tiie employment of
women and children. Tbe presence of wo
men In Industry reacts with extreme direct
ness upon the character of the home and
upon family pfe. and the conditions sur
rounding the employment of children bear a
vital relation to our future citizenship. Our
legislate n in thoee areas under the control
of I he Congress is very much behind the
legislation of our more progressive states.
A thorough and comprehensive measure
should be adopted at this session of the
Congress relating to the employment of
women and children in the District of Co
lumbia and the territories. The investiga
tion Into the condition of women and chil
dren wage-earners recently authorized and
directed by the Congress Is now being car
ried on in the various states, and 1 recom
mend that the appropriation made last
year for beginning this work be renewed, in
order that we may have the thorough and
comprehensive investigation which the sub
ject demands. The National Government
has as an alttmate resort for control of child
labor the use of the Interstate commerce
clause to prevent tire, products of child
labor from entering into Interstate com
merce. But before using this it ought cer
tainly to enact model laws on the subject
for the territories under its own Immediate
control.
Jnslstence Upon Honesty.
There is one fundamental proposition
which can be laid down as regards all these
matters, namely: While honesty by itself
will not solve the problem, yet the insist
ence upon honesty not merely technical
honesty, but honesty In purpose and spirit
is an essential element In arriving at a
right conclusion. Vice in Its cruder and
more archaic forms shocks everybody; but
there is very urgent need that public opin
ion should be just as severe In condemna
tion of the vice which hides itself behind
class or professional loyalty, or which de
nies that It is vice if it can escape con
viction in the courts. The public and the
representatives of the public, the high offi
cials, whether on the bench or in executive
or legislative positions, need to remember
that often the most dangerous criminals,
so far as the life of the Nation is concerned,
are not those who commit the crimes known
to and condemned by the popular conscience
for centuries, but those who commit crimes
only rendered possible by the complex con
ditions of our modern industrial life. It
makes not a particle of difference whether
these crimes are committed by a capitalist
or by a laborer, by a leading banker or
manufacturer or railroad man, or by a lead
ing representative of a labor union. Swind
ling In stocks, corrupting legislatures, mak
ing fortunes by the inflation of securities, by
wrecking railroads. by destroying compet
itors through rebates these forms of wrong
doing In the capitalist, are-far more infa
mous than any ordinary form, of embezzle
ment or forgery; yet it is a matter of ex
treme difficulty to secure the punishment
of the man most guilty of them, most re
sponsible for them. The business man who
condones such conduct stands on a level
with the labor man who deliberately sup
ports a corrupt demagogue and agitator,
whether head of a union or head of some
municipality, because he is said to have
"stood by the union." The members of the
business community, the educators, or
clergymen, who condone and encourage the
first kind of wrong-doing, are no more dan
gerous to the community, but are morally
even worse, than the labor men who are
guilty of the second type of wrong-doing,
because less is to be pardoned those who
have no such excuse as Is furnished either
by Ignorance or by dire need.
Farmers and Wage-Workers.
When the Department of Agriculture was
founded there was much sneering as to ita
usefulness. No department of the Govern
ment, however, has more emphatically vin
dicated Its usefulness, and none save the
I'os toff ice Department comes so continually
an (I intimately into touch with the people.
The two citizens whose welfare is In the ag
gregate most vital to the welfare of the Na
tion, and therefore to the welfare of all
other citizens, are the wage-worker who
does manual labor and the tiller of the
soil, the farmer. There are, of course, kinds
of labor where the work must be purely
mental, and there are other kinds of labor
where, under existing conditions, very little
demand indeed is made upon the mind,
though I am glad to say that the propor
tion of men engaged in this kind of work is
diminishing. But in any community with
the solid, healthy qualities which make up
a really great nation the bulk of the people
should do work which falls for the exercise
of both body and mind. Progress cannot
permanently exist In the abandonment of
physical labor, but in the development or
physical labor, so that It shall represent
more and more the work of the trained
mind in the trained body.
Our school system is gravely defective in
so far as it puts a premium upon mere lit
erary training nnd tends therefore to train
the boy away from the farm and the work
shop. Nothing is more needed than the best
type of industrial school, the school for me
chanical Industries In the city, the school
for practically teaching agriculture In the
country. The calling ot the skilled tiller of
the soil, the calling of the skilled mechanic,
should alike be reclgnlzed as professions.
Just bus emphatically as the callings of law yer,
doctor, merchant or clerk. The schools
should recognize this fact and it should