Morning Oregonian., February 01, 1908, Page 4, Image 4

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TITTJ MOItNIXG OREGOXIAX, SATURDAY, FEBRUARY 1, 1908.
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ROOSEVELT FLAYS HIS REACTIONARY CRITICS WITHOUT MERCY
(Continued From First Page.)
but which. If undistributed, bears -with
'frig-htful hardship upon the unfortunate vic
, tim of accident. In theory, if w aires were
always freely and fairly adjusted, they
would always include an allowance as
against the risk of Injury, Just ai certainly
as the rate of Interest for money includes
an allowance for insurance against the risk
of loss. In .theory, If employes were all ex
perienced business men. they would employ
that part of their wacs which Is received
because, of the risk of injury to secure them
against accident. As a matter of fact, it Is
not practical to exuect .that this will be
done by the groat body of employes. An
employers' liability law makes It certain
that it will be dr.ne. In effect, by the em
ployer and it will ultimately cause no real
additional burden upon him.
Thre is a special bill to which I call your
attention. Secretary Taft has urgently rec
ommended the immediate passage of a law
providing for compensation to employes of
the Government Injured in the work of the
Isthmian Canal and that $100,000 be appro
priated for tli in purpose each year. SI ear
nemly hope this wlil be done and that a
sjcc!;il bill be passed covering the case of
Yaidinastcr Hanttm. who was injured nearly
two years atc while doing his duty. He id
now helpless to support his wife and his
three little boys.
IJmlt ItMiie of Injunctions.
I again call ytur attention to the need of
pome action in connection with the abuse of
injunctions In labor cases. As regards the
l ights and wrongs of labpr and capital, from
blacklisting to boycotting, the whole sub
ject is covrcl In admirable fashion by the
1 rport of tlicAni bract te Coal Strike Com
mission, which report should servo as a chart
for tho jfultlane of both ej;islati ve and ex
ecutive officers. As regards Injunctions. I
can do little but repeat what '1 have Maid
in my last message to Congress. Even
though It were potts 1 bio, I should consider it
most unwise to abolish the use of the pro
cess of injunction. It is necessary In order
that the courts may maintain their own dig
nity and Ju order that they may in effective
maitnor check disorder and violence. The
jude who uses It cautiously and conserva
tively, but who. when the noed arise, uses
It fearlessly, confers the greatest service
npon our people, and his pre-eminent useful
ness as a public servant should be heartily
recoguized.
Hut there Is no question in my mind that
it lias sometimes been used heedlessly and
unjustly, and that some of the injunctions
issued inflict grave and occasional Irrepar
able wrong upon those enjoined. It is all
wrong to use the Injunction to prevent the
entirely proper and legitimate action of
labor organizations infhelr struggle for in
dustrial betterment, or under the cuise of
protecting property rights unwarrantably to
Invade the fundamental rights of the Indi
vidual, t It Is futile to concede, as we all
-do, the right and the necessity of organized
effort on the part of the wage-earners and
yet by Injunctive process to forbid peace
ful action to accomplish the lawful object
for which they are organized and upon
which their success depends.
Injustice Will provoke Revolt. '
The fact that the punishment for the
violation of an Injunction must, to make
the order effective, necessarily be without
the Intervention of a jury, makes Its Issu
ance in doubtful cases a dangerous prac
tice, and In itself furnishes a reason why
the process should be surrounded with safe
guard to protect individuals against being
enjoined from exercising their proper rights.
Keasonable notice should be given the ad-
verse party.
This matter is dally becoming of graver
Importance and I cannot too urgently rec
ommend that the Congress give careful
'consideration to the subject. If some way
of remedying the abuses is not found, the
feeling of Indignation against them among
large numbers of our citizens will tend to
grow so extreme as to produce a revolt
against the wnole use of the process of the
Injunction. The ultra-conservatives who" ob
ject to cutting out the abuses wilt do well
to remember that, if the popular feeling
does become strong, many of those upon
whom they rely to defend them will be the
liret to turn against them. Men of property
canno afford to trust to anything save the
spirit of Justice and fair play; for those
very public men who, while it is to their
Interest, defend all the abuses commended
by capital and -pose as the champions of
conservatism will, in the . moment they
think their inter. -t changes, take the lead
In jtist sueh a matter as this, and pander
to wl.at they esteem popular feeling by en
deavoring, for Instance, effectively to de
stroy, the power of the courts In matters
of Injunction; and would even seek to ren
der nugatory the power to punish for con
tempt, upon which power the very existence
of the orderly administration of justice de
pends. New Law Aguinst Blacklist.
It Is my purpose as soon aa may be to
submit some further recommendations In
reference ti our laws regulating labor con
ditions within the sphere of Federal author
ity. A very recent decision of the Su
preme Court of the United States, ren
dered since this message was written, in
the case of Adair vs. Vnited States, seem
ingly of far-reaching Import and of very
serious probable consequences, has so modi-
lied the previously entertained view as to
' make necessary careful consideration of the
opinions therein filed before it is possible
definitely to decide in what way to call It
to your attention.
. ' .ive Interstate Hoard More Power.
Not only should there be action on cer
tain laws affecting wage-earners; there
should also be nuch uction on laws- better
to securo control over the great business
concerns engaged in Interstate commence,
and especially over the great common car
riers. The interstate Commerce Commis
sion .should be empowered to pass upon
any rat or practice on its own initiative.
Moreover, it shotild be provided that when-
. ever the commission hasrcason to believe
that an advance is not to be made without
Invest ijfa-Uon.. it should have authority to
iFMie au order prohibiting the advance
pending examination by the commission. It
would not be understood as expressing an
opinion that any or even a majority of
these advances are Improper. Many of the
rates in this country have been abnormally
low The operating expenses of our rail-
mads, notably the wanes paid railroad em
ptnyes, have greatly Increased. These and
ot her causes may In any case cause an
advance. Hnd, if so. the advances should
be permitted and approved. But there may
' be. and doubtless are, cases where this Is
not true, and our law should be bo framed
tat the Government, -as the representative
of yie whole people, can protect the indi
vidual against unlawful exaction for the
use of these public highways. -
The Interstate Commerce Commission
should be provided with the means to make
a physical -valuation of any -road as to
which it deems the valuation necessary. In
ftome form the Federal Government should
exercise .supervision over the financial op
erations of our Interstate railroads. In no
other way can justice be done between the
private owners of those properties and the
public which pay their charges. "When once
an inflated capitalization has gone upon the
market and has become fixed In value. Its
' existence must be recognized. As a prac
tical matter. It is thought often absolutely
necessary to Wtke account of the grievances
of innocent stockholders who have par-'
chased their stocks In good faith. The
iifmal result of such Inflation is therefore
. to impose upon the public an unnecessary
but everlasting tax. while the Innocent pur
chasers of the stock are also harmed and
, only a few speculators are, benefited. Such
, : wrongs once accomplished rati with difft
cuTty undone; but they can bo prevented
with safety and justice.
Supcrvlhe Kailroad Mmtnce.
"When combinations of Interstate railways
must obtain government sanction; when It
is no longer possihle for an interstate rail
way to Issue stock or bonds save m the
manner approved by the Federal Govern
ment; when that Government makes sure
that -the proceeds of every stock and bond
Issue go into the improvement of the prop
erty and not the enrichment of some In
dividual or syndicate ; when, whenever It
becomes material for puidance In the regu
lative action of the Government, the phys
ical value of one of these properties Is
determined and mad known, there will be
eliminated from railroads that element of
uncertainty which lends to them their spec
ulative quality and which has contributed
much, to the financial stress of the recent
past.
I think that the Federal Government must
also assume a pertain measure- of control
over the physical operation of railways In
the handling of interstate traffic. The com
, mission now has authority to establish
through routes and Joint rates. in order
to make -this provision effective and In or
der to promote In times of necessity the
proper movement of traffic. I think It must
also have authority to determine, the con
ditions upon which cars should be Inter
changed between different interstate rail
ways. It 's also probable that the com
mission whould have authority, in partlcu-tur-
Itiytunces, to determine the schedule
pi-n which perishable commodities shall be
moved '
IjTCTilize Tariff. AooltlnV.
In this connection I desire to repeat my
- recommendation that railways be permitted
to form tariff associations for the purpose
of conferring about and agreeing upon rates,
regulations and practices affecting Inter
state business in which the members of the
association are mutually Interested. This
does not mean that they should be given
the right to pool their earnings. The law
requires that rates shall be so adjusted as
not to discriminate between individual lo
calities or different species of traffic. Or
dinarily rates by all competing lines must
be the same. As applied to practical con
ditions, the railway operations of this coun
try cannot be conducted according to law
without what Is equivalent to confidence
and agreement. The 'articles under which
such associations operate should be ap
proved by the commission. All their op
erations should be open to public inspec
tion, and rates and returns upon which
they agree should be subject- to disapproval
by the commission.
I urge this lost provision with the same
earnestness that I do the others. This
country provides Its railway facilities by
private capital. Those facilities will not be
adequate unless the capital employed is as
sured of just treatment and an adequate
return. In fixing the charges of our rail
roads I believe that, considering the in
terests of the public alone. It Is .better to
allow too liberal rather than too scanty
earnings, for, otherwise, there is grave dan
ger that our railway development may not
keep pace with the demand fr transporta
tion. But the fundamental idea that these
railways are public highways must be rec
ognized, and they must be open to the
whole public upon equal and upon reason
able terms.
Thorough Supervision of Trusts.
In reference to the Sherman anti-trust
law I repeat the recommendations made in
my message at the opening of the Sixtieth
Congress as well as in my message to the
previous Congress. The attempt In this
law to provide in sweeping terms against
ail combinations of whatever character, if
technically In restraint of trade, as such
restraint has been defined by the courts,
must necessarily either be futile or mis
chievous, and sometimes both. The present
law makes some combinations illegal, al
though they may be useful to the country.
On the other haud, as to some huge com
binations, which are both obnoxious and
Illegal, if the action undertaken against
them under the law by the Government is
successful, the result may be to work but
a minimum benefit to the public. Even
though the combination Is broken up and a
small measure of reform thereby produced,
the real good aimed at cannot be obtained,
for such real good can coins only by a
thorough and continuing supervision over
the acts of the combination In all pars.
so as to prevent stock-watering, improper
forms of competition and, In short, wrongdoing-
generally. The laws should correct
that portion of the Sherman act which
prohibits all combinations of the character
above described, whether they be reason
able or unreasonable; but this should be
done only as part of a scheme to provide
for this effective and thoroughgoing super
vision by the National Government of all
the operations of the big interstate busi
ness concerns.
Judge Hough, of New York, in his recent,
decision In the Hardman case, states that
the Congress possesses the power ' to limit
the Interstate operations of corporations not
complying with Federal regulations against
the recurrence of obnoxious practices, and
to license those which afford the public
adequate security against methods calcu
lated to diminish solvency, and therefore
efficiency and economy In Interstate trans
portation. The Judge adds that In these
matters "the power of Congress Is ample,
though as yet not fruitful in results." It
Is very earnestly to be desired that either
along the lines the Judge Indicates or In
some other way equally efficacious the Con
gress may exercise the power which ha
holds It possesses.
Make Rich and Poor Obey Laws.
Superficially it may seem that the laws
the passage of which I here advocate, for
I have repeatedly advocated them before,
are not connected, but in reality they are
connected. Kach and every one of these
laws, if enacted, would represent part of
the campaign against privileges, to make
the class of great property-holders realize
that property has Its. duties no. less than
its rights. When the courts guarantee to
the employe, as they should, the rights of
the employe, and to property the rights of
property, they should no less emphatically
make it evident that .they will exact from,
property and from the employer the duties
that should necessarily accompany these
rights; and hitherto our laws have failed
In precisely this point of enforcement of
the performance of duty by the man of
property toward the man who works for
him. by the man of great wealth, especially
If he uses that wealth in corporate form,
toward the Investor, the wage worker and
the general public. The failure of the. man
of property to fulfill his obligations would
ultimately assure the wresting from -him of
the privileges which he is entitled to en
joy If he recognizes the obligations accom
panying them. Those who assume or share
the responsibility for tbis failure are ren
dering but poor service to the cause which
they believe they champion.
Stop Gambling in Stocks,
I do not know whether it is possible, but.
If possible, it is certainly desirable, that
In connection with measures to restrain
stock-watering and over-capitalization there
should be measures taken to prevent at
least the grosser forms of gambling in se
curities and commodities, such as making
large sales of what men do not possess and
"cornering" the market. Legitimate pur
chases of commodities a fid of stocks' and
securities for investment have no connec
tion whatever with purchases of stocks or
other securities or commodities on a mar
gin for speculative and gambling purposes.
There is no moral difference between gam
bling at cards or lotteries or on the race
tracks and gambling in the stock market.
One method is just as pernicious to the
body politic as the other In kind, and In
the evil worked far greater, but a far more
difficult subject with which to deal.
The great bulk of the business transacted
on the exchanges Is not only legitimate,
but Is necessary to the working of -our
modern Industrial system, . and care would
have to be taken not to Interfere with
legitimate business interests. Moreover,
there is a special difficulty in dealing with
this matter by the Federal Government In
a Federal Republic like ours. But, If it
is possible to- devise a way to deal with it,
the effort should he made, even if only in
a cautious and tentative way. It would
seem that the Federal Government could
at least act by forbidding the use of the
mails, telegraph and telephone wires for
mere gambling In stocks and futures, just
as It dea in lottory transactions.
At tucks of Corporations on Courts.
t inclose herewith & statement Issued by
the -Chief of the Bureau of Corporations
(appendix), in answer to certain statements
(which, I also lnclose made by and on
behalf of the agents of the Standard Oil
Corporation (appendix and a letter of
the Attorney-General (appendix 3), contain
ing an answer to certain statements; also
inclosed, made by the president of the
Santa Fe Railway Company (appendix 4 1.
The Standard Oil Corporation and the rail
way company have both been found guilty
by the courts of criminal misconduct; both,
have been sentenced to pay heavy fines,
and each has issued and published broad
cast these statements, asserting their inno
cence and denouncing as Improper the ac
tion of the courts and juries In convicting
them of guilt. These statements are very
elaborate, are very interesting and are un
truthful In. important particulars.
The following letter and - inclosure from
Mr. Heney sufficiently Illustrates the meth
ods of the high officials of the Santa Fe
and show the utter falsity of their plea of
Ignorance, the similar plea of the Standard
Oil ' being equally without .foundation:
Heney Kxposes Rebate Teal.
"Department of Justice Office of the U. 3.
Attorney, District of Oregon, Portland,
Jan. XI. 90R.
"The President, "Washington. D. C.
"Dear Mr. president: I understand that
Mr. Ripley, of the ' Atchison, Topeka A
Santa Fe Railway system has commented
with some severity upon your attitude to
ward the payment of rebates by certain
transcontinental railroads and that he has
declared that he personally never knew any
thing about any rebates beinp granted by
his -road . . . I Inclose you herewith
copy of a letter from Edward Chambers,
general freight traffic manager of the Atch
ison, Topeka, & Santa Fe Railway system,
to Mr. G. A Davidson, auditor of the Santa
Fe company, dated February 11)07.
. . . This letter does nqt deal with lnterT
state shipments, but the constitution of the
State of California makes the payment of
rebates by railroads a felony, and Mr. Rip
ley has apparently not been above the com
mission of crime to secure business. You
are at liberty to use this inclosure In any
way that you think It can be of service to
yourself or the public-
"Sincerely yours.
"FRANCIS J. HENEY."
"San Francisco, June 27, 1907.
"Dear Sir: I hand you herewith a tile of
papers covering the movement of fuel
shipped by the Associated Oil Company over
our lines from January 1. 1000, up to and
Including November l."V, lOOti. "We agreed
with the Associated Oi! Company, in nego
tiations with Mr.. Ripley. Mr. Wells and
myself that in consideration of their mak
ing us a special price on oil for company
STRONG POINTS OF THE PRESIDENT'S MESSAGE
An injured workman has no remedy and the entire burden of the accident falls on the helpless man, his wife
and his young" children.
The injured employe or his surviving dependants should not be required to bring suit. The com
pensation should be paid automatically.. The same principle should be made applicable to private employers.
It is all wrong to use the injunction to prevent the entirely proper and legitimate action of labor organizations.
The fact that the punishment for violation of an injunction must be without intervention of a jury furnishes a reason
why the process should be surrounded with safeguards.
If some way of .remedying- the abuses is not found, indignation may produce a revolt against the whole use of
injunctions. Men of property cannot afford to trust to anything save the spirit of justice and fair play.
IXFLATIOX BRINGS ETERXAL TAX.
The usual result of inflation (of railroad capitalization) is to impose upon tbe public an unnecessary but ever
lasting tax, while only a few speculators are benefited.
In fixing the charges of our railroads It is better to allow too liberal than too scanty earnings, otherwise rail
way development may not keep pace with the demand. .
The attempt to provide against all combinations of whatever character must necessarily be either futile or mis-
chievous and sometimes both. Heal good can come only by a thorough and continuing supervision over the acts of
the combination in all parts.
PROPERTY HAS BOTH DITTIES AND RIGHTS.
Each and every one of these laws would represent part of the campaign aguinst privileges, to make great property-holders
realize that property has its duties no less than its rights.
There is no moral difference between gambling at cards or. lotteries or on the race track and gambling in the
stock market. One method is just as pernicious as the .other, and in the evil worked far greater.
The Federal Government could at least act by forbidding the use of the mails, telegraph and telephone wires for
mere gambling in stocks and futures. ... - .
. BANDED TOGETHER FOR REACTION
Certain wealthy men, whose conduct should be abhorred by every man of ordinary, decent conscience, and who
commit the hideous wrong of teaching our young men that phenomenal business success must ordinarily be based
on dishonesty, have banded together to work for a reaction.
The administration and those who support its views are not engaged in an assault on property, but are strenuous
upholders of the rights of property.
We attack only the corrupt" men of wealth who find in the purchased politician the most efficient instrument of
corruption and in the purchased newspaper the most efficient defender of corruption. It is not the puppet, but the
strong, cunning men and the mighty forces working for evil behind and through the puppets with whom we have
to deal. i
Such attacks (of radicalism) become inevitable if decent citizens permit those rich men whose Uvea are corrupt
and evil to domineer in swollen pride, unchecked and unhindered, over the destinies of this country.
Every measure for honesty, in business that 'has been passed during the last six years has been opposed by these
men.
PUNISHMENT OP WRONGDOERS.
When we are able to put the real wrongdoer in prison, this is what we strive to do; this is what we have actually
done with some very wealthy criminals. The Government has put behind the bars with impartial severity the
powerful financier, the powerful politician, the rich land thief, the rich- contractor. All their wealth and power
cannot protect them. :
It often .happens that the effort to imprison is futile, while it is possible to fine. The corporation lawyers and
their employers are mainly responsible for this state of things. '
' That stockholder is not innocent who purchases stock in a corporation whose methods and management he knows
to be corrupt.
" HONESTY "UNSETTLES BUSINESS.
The apologists of. successful dishonesty by their acts have "unsettled business." They have hurt honest busi
ness men, honest workingmen, honest farmers and now they clamor against the truth being- told.
Tho outcry against stopping dishonest practices among wrongdoers who happen to be wealthy is similar to the
outcry against every effort for cleanliness and decency in city Government, because, forsooth, "it hurts business."
The "business" which is hurt by the movement for honesty is the kind of business in the long run it pays the
country to have hurt..
It Is meet and fit that the apologists for corrupt wealth should oppose every effort to relieve the weak and
helpless people from crushing; misfortune brought upon them by injury.
CRITICISM OF JUDGES.
The same critics of these two judges (who fined the Standard Oil Company and the Santa F) exhaust them
selves in denouncing discussion of the action of a judge which., results in immunity to wealthy and powerful wrong
doers. V
A judge Who fails to do his duty by the public in dealing with lawbreaking corporations, lawbreaking men of
wealth, must expect to feel the weight of public opinion. No servant of the people has a right to expect to be'free
from just and- honest criticism.
Our purpose Is to secure National honesty in business and in politics.
Justice is meted out with an even hand to great and small, rich and poor, weak and strong. The laws have been
enforced against the very wrong-doers and agents of wrongdoers who have for so many years gone scot free and
flouted the laws with impunity. '
. MUST SHACKLE CUNNING. ,
New conditions make it necessary to shackle cunning as in the past we have shackled force.
Thoroughgoing and satisfactory control of corporations can in the end only be obtained by the action pf the
National Government.
The defenders and apologists of the .great corporations are not only proving false to Jhe people, but are laying
up the day of wrath for the great corporations. .
Business distress is due to the speculative folly and flagrant dishonesty of a few men of great wealth. But,
If it were true that to cut out rottenness from the body politic meant a momentary check to an unhealthy seeming
prosperity, I could not for one moment hesitate to put the knflfe to corruption.
Strive to bring nearer the day when greed and trickery and cunning shall be trampled under foot.
use. Which U covered by a contract, and
the further consideration that we would
take a certain quantity, they would in .turn
ship from Bakersfield over our line to San
Francisco Bay points a certain minimum
number of barrels of fuel oil at rate of 23
cents per barrel from Bakersfield, exclusive
of the switching charges. These state
ments cover the movement, except that
they have Included Stockton, -which is not
correct, as it Is not a hay point, and could
not be reached as conveniently by Water.
We have paid them on account of this
movement $7239. which should be deducted
from the total movement shown In the at
tached papers. I would arrange to make
up a statement, check the same and refund
to the Associated Oil- Company down to
the basis of 25 cents pev barrel from Ba
kersfield,, where they are the .shippers, re
gardless of who Is consignee,' as all their
fuel oil U sold delivered.
"The reason for making this deal, in ad
dition to what I have stated. Is that the
Associated Oil Company have their own
boats and carry oil from fields controlled
by themselves along the coast near San
l,uis Obispo to San Francisco at a much
lower cost than the special rate we have
made them, and in competition with the
Union Company and the 8tandard Oil Com-,
pany It was necessary for them to sell at
the San Francisco Bay points on the basis
of the cost of water transportation from
th fields. They figured they could only
afford to pay us the 20 cents a barrel, If
by doing this they could, sell our company
a certain amount of fuel oil; otherwise the
business covered by the attached papers
would have come lu boat from the Coast
fields.
"1 am writing this up completely so there
may be in the papers a history of the rea
sons why this arrangement was made. I
wIhIi . you would go ahead and make the
adjustment as soon as possible, as the As
sociated Oil Company are anxious to have
the matter closed up. The arrangement was
concluded on November 15 at a conference
between Mr. Ripley. Mr. Wells, Mr. Porter
and myself.
"Yours truly.
"EDWARD CHAMBERS.
AsP'Iated OH Co.
.'Mr. CI. A. Davidson, Auditor, Ios An
. Bcies."
Reactionaries Defendfrbnea.
The attacks of these great corporations
on the Administration's actions have been
given - a wide circulation throughout the
country. In the newspapers and otheewlse,
by those writers and speakers who, con
sciously or unconsciously, act as the rep
resentatives of predatory wealth of the
wealth accumulated on a gigantic scale by
all forms of iniquity, ranging from the op
pression of w a e workers to unfair and un
wholesome methods of crushing out com
petition, and to defrauding the public by
stock-jobbing and the manipulation of se
curities. Certain wealthy men of this
stamp, whose conduct should be abhorred
by every man ef ordinary decent conscience,
and who commit the hideous wrong of
teaching our young men that phenomenal
business success must ordinarily be based
on dishonesty, have during the last few
months made it apparent that they have
banded together to work for a reaction.
Their endeavor Is to overthrow and dis
credit all those who honestly administer the
law, to prevent any additional legislation
which would check and restrain them, and
to secure, if possible, a freedom from all
restraint which will permit every unscrupu
lous wrongdoer to do what, he wishes un
checked, provided he has enough money.
The only way to counteract the movement
In whUrh these men are engaged Is to make
clear to the public" Just what they have
done in the past and just what they are
seeking to accomplish In the present.
The administration and those who support
Its vlevs are not engaged in an assault on
property, but are strenuous upholders of the.
rrghts of property. The wise attitude to
take is admirably stated by Governor Fort
of New Jersey, in his recent inaugural ad
dress, the principles whlrh he upholds as
regards the state being of course Identical
with those which should obtain as regards
the Nation. t
Power of State to Regulate.
"Just and fair regulation can only be
objected to by those misconceiving the
rights of the state. The state grants all
corporate powers to railways and other
public utility corporations, and may not only
modify but repeal all charters and charter
privileges it confers. It may, therefore,
Impose conditions upon their operation at
its pleasure. Of course In doing these
things It should act wisely and with con
servatism, protecting all vested rights of
property and the Interests of the innocent
holders of the securities of existing quasi
public corporations.
"Regulations therefore upon a wise basis
of the operation of these public utility
companies, including the fixing of rates
and public charges upon complaint and
subject to court review, should -be en
trusted to a proper board, as well as the
right to regulate the output of stock and
the bonded issues of such corporations. If
this were done, it would luuxm to the ben
efit of the people and the companies, for
it would fix the value of such securities
and act as a guaranty against their de
preciation. Under such a law, the holders
of existing securities would .find them pro
tected and new securities offered would
have the confidence of the people. Because
of the guaranty of the state that they
were only issued for extensions or better
ments and upon some basis of the cost of
j such extensions or betterments, it is dif
j flcult to suggest any legislation that would
give greater confidence to the public and
Investors than a wise public utilities bill;
j and the mere suggestion of Its enactment
j should cause this class of security-holders
to feel that their holdings were strength
t ened and that the state was able to aid
the managers of the public utility corpora
yobs to conserve their corporate property
for the public benefit and for the protection
of Invested capital.
Protection to Investors.
"The time has come for the strict super
vision of these great corporations and the
limitation of their stock and bond Issues un-
der some proper official. It will make for
i conservatism and strengthen the companies
ooing a legitimate business, and eliminate,
let us hope, those which are merely specu
lative in character and organized simply
to catch the unsuspecting or credulous in
vestor. "Corporations have come In our business
world to remain for all time. Corporate
methods are the most satisfactory for busi
ness purposes in many ca-ses. Every busi
ness or enterprise honestly incorporated
should be protected and the public made to
feel confidence in its corporate organisation.
Capital invested in corporations must be, as
free from wrongful attack as that invested
by individuals and the state should do
everything to foster and protect Invested
corporate capital and encourage the public
in giving to It support and confidence.
Nothing will do as much to achieve this de
sirable result as proper supervision and
reasonable control over stock and bond is
sues, so that over-capitalization wilt be pre
vented and tbe people may know when they
buy a share of stock or a bond that the
name of the Mate upon it .stands as a
guaranty that there is value behind it and
reasonable safety In Its purchase. The act
must make it clear that the intent of the
supervision by the commission is not for
the purpose of striking at corporate organ
ization or invested corporate capital, bat
rather to recognize and protco existing
conditions and insure greater safety for
the future.
"Capital does not go Into a state where
reprisals are taken or vested interests: It
i comes only where wise, conservative.' safe
t treatment is assured, and it should be our
policy to encourage and secure corporate
rights and the best interests of stock and
bondholders committed to our legal care."
Judge by Conduct, Not by Riches.
Under no circumstance would we counte
nance attacks uioa law-abiding property, or
do aught but condemn those who hold up
rich men as being evil men because of their
riches. On the other hand, our whole effort
is to insist upon conduct, and neither wealth
nor property nor any other claes distinction,
a beln g the proper standard by which to
judge the actions of men. For the honest
men of great wealth we have a hearty re
gard, Just pa we have a hearty regard for
the honest Dollticlan and honest newsuapcr.
J But part of the movement to uphold honesty
umai krrj , iiiu vfmen L io iiown.on uimionrnij.
We attack only the corrupt men of wealth
who find In the purchased politician the most
efficient instrument of corruption s-nd in
the purchased newspaper the most efficient
defender of corruption. " Our main quarrel ia
not with these agents and representatives of
the intere.ts. They derive their .chief power
from sinisi offenders who stand behind them.
They are but puppets who move as the strings
re pulled. It ia not tbe puppets, but the strong
cunning men and the mighty forces working
for evil behind and through the puppets, with
whom we have. to deal. We seek to control
law-defying wealth; In the first place to pre
vent its doing dire evil to the Republic, and
in the next place to avoid the vindictive and
dreadful radicalism which, if left uncon
trolled, is certain in the end to arouse sweep
ing attacks upon all property, upon all men
of means, wtthqut regard to whether they do
well or 111. Such attacks would sound the
death-knell of the Republic; and such at
tacks become Inevitable If decent citizens
permit those rich men whose lives are cor
rupt and evil to domineer In swollen pride,
unchecked and unhindered, over the des
tinies of this country.
-.We act In no vindictive spirit, and we are
no respecters of persons. If a labor union
does-wrong we oppose it as strongly, as firmly
as we oppose a corporation which does wrong;
we stand stoutly for the rights of the men
of wealth and for the rights of the wage
worker. We seek to protect the property of
every man who acts honestly, of every cor
poration that represents wealth honestly ac
cumulated and honestly used. We seek to
stop wrongdoing, and we desire to punteh the
wrongdoern only so far as Is necessary - to
achieve this end.
Hired Champions of lawless Rich.
There are ample material rewards for thope
who serve with fidelity the mammon of un
righteousness, but thy are dearly paid for
by the people, who permit their representa
tives, whether in public lite. ureas
or in the colleges1, where the young1 men are
taught to preach and practice, that there is
one law for the rich and nother for the
poor. The books and pamphlets, the con
trolled newspapers, the speeches by public or
private men to which I refer, are usually and
especially in the interest of the Standard OH
trust and of certain notorious combinations,
but they also defend other Individuals and
corporations of great wealth that have been
guilty of wrongdoing. It le only rarely that
the men responsible for the wrongdoing them
selves speak or write. Normally they hire
others to do their bidding, or others will do
it without hire.
From the railroad rate law to the pure food
law, every measure for honesty in burlnei
that has been passed during the last six years
has been opposed by these men on Its passaee
and in its administration by every means that
bitter and unscrupulous craft could suggest
and command of almost unlimited money se
cure. For .the last year the attack has been
made- with most bitterness upon the actual
administration of the law, e.peclally through
the Department of Justice, but also through
the Interstate Commerce Commission and the
Bureau of Corporations.' The extraordinary
violence of the assaults upon our policy con
tained In these speeches, editorials, articles,
advertisements and pamphlets, and the enor
mous jums -of money spent in these various
ways five a fairly accurate measure of the
anger and terror which our public actions
have caused the corrupt men of vast wealth
to feel in the very marrow of their being.
The attack is sometimes made openly against
us for enforcing the law and sometimes, with
a certain cunning, for not trying to enforce
it in some other way than that which ex
perience shows to be practical. One of the
favorite methods of the latter class of assaults
ia to attack the administration for not pro
curing the Imprisonment instead of the fine
of offenders under these anti-trut laws. The
man making this anpault is usually either a
prominent lawyer or an editor who takes his
policy from the financiers and hB arguments
from their attorneyi.' If the former, he baa
advised many -wealthy malefactors and he
knows well that, thanks to the advice Of
lawyers like himself, a certain kind of cor
porations have turned into admirable instru
ments by which to render it impossible to st
at the head of the corporation the man who
is really mot guilty.
Pnnltfh the Real Wrongdoer.
When wo are able to put tho real wrong
doer in prison, this Is what we strive to do;
this is what we have actually done with
some very wealthy criminals, who,, more
over, reoresented that most baneful of all
alliances, tho alliance between the cor
ruption of organized politics and the cor
ruption of high finance. This Is what we
have done in the Gaynor and Greene case,
in the case of the misapplication of fund
In connection with certain great banks in
Chicago, in the land fraud cases, where, as
In other cases likewise, neither the highest
political position nor the possession of great
wealth has availed to save the offenders
from prison. The Federal Government does
scourge sin: it does bid sinners fear; for
It has put behind the bars with impartial
severity the powerful financier, the power
ful politician, the rich land thief, the rich
contractor all. no matter how high their
station, acalnst whom criminal misdeeds
can be proved. All their wealth and power
cannot protect them. But it often happens
that the effort to Imprison a given defend
ant Is certain to be futile, while It Is pos
sible to fine him or to fine the corporation
of which he is head; so that, in other
words, the only way of punishing the wrong
Is by fining the corporation, unless we are
content to proceed personally against tho
minor agents.
The corporation Mawyera to whom I refer
and their employers are the men malnl
responsible for this state of things, and
their responsibility Is shared with all who
Ingeniously oppose the passing of Just and
effective laws. -or who fail to execute them
when they have been put on the statute
books.
Stockholders Xot All Innocent.
Much is said. In these attacks uaon the
policy of the present administration, about
the rights of "innocent stockholders." That
stockholder is not Innocent who volun
tarily purchases stock in a corporation
whose methods and management he knows
to be corrupt; and stockholders are bound
to try to secure honest management, or
else stopped from complaining about the
proceedings the Government finds neces
sary in order to compel the corporation to
obey the law. There has been In the past
grave wrong- done Innocent stockholders by
over-capitalization, stock-watering, stock
jobbing and stock-manipulation. This we
have sought to prevent,- first, by exposing
the thing done and punishing the offender
when any exiatlng law has been violated;
second, by recommending the passage of
laws which would make unlawful similar
practices for the future. The public men.
lawyers and editors who loudly proclaim
their sympathy for the "Innocent stock
holders" when a great law-defying cor
poration ia punished, are the first to pro-,
test with frantic vehemence against all ef
forts by law to put a stop to the practices
which are the real and ultimate sources of
the damage alike to the stockholders and
public.
The apologists of successful dishonesty al- ;
ways declaim against any effort to punish
or prevent it on the ground that any such
effort will "unsettle business." It is they
who, by their acts have unsettled business;
and the very men raising this cry spend
hundreds ot thousands of dollars in securing
by speech, editorials, book or pamphlet, the
defense by misstatements of what they have
done; and yet when public servants correct
their misstatements by telling the truth,
they declaim against them for breaking sl
'lence, lest "values be depreciated." They
have hurt honest business men, honest
workingmen, honest farmers; and now they
clamor against the truth being told.
The keynote of all these attacks upon
the effort to secure honesty in business and
In politics, is well expressed in brazen pro
tests against any effort for the moral re
generation of the business world, on the
ground that it is unnatural, unwarranted
and Injurious, and that business panic is
the necessary penalty for such effort to se
cure business honesty. The morality of
such plea is precisely as great as If made
on behalf of the men caught in a gambling
establishment when that gambling estab
lishment Is raided by the police. If such
words mean anything, they mean that those
whose sentiments they represent stand
against the effort to bring about a moral
regeneration of business which will prevent
a repetition of the. insurance, banking and
street railroad scandals in New York; a
repetition of the Chicago &c Alton deal ; a
repetition of the combination between cer
tain professional politicians, certain pro
fessional labor leaders, and certain big
financiers, from the disgrace of which San
Francisco has just been rescued ; a repeti
tion of the successful effort by the Standard
Oil Company people to crush out every
competitor, to overawe the common carriers
and to establish a monopoly which treats
the public with contempt, which the public
deserves so long as it permits men of such
principles to avow and act on them with
Impunity. The outcry against stopping dis
honest practices among the wrongdoers who
happen to be wealthy is precisely similar to
the outcry raised against every effort for
cleanliness and decency in city government,
because, forsooth. It "hurts business."
Corrupt All Linked Together.
The same outcry is made against the
Iepartment of Justice for prosecuting the
heads of colossal corporations that "has been
made against the men who in San Fran
cisco have prosecuted with impartial sever
ity the wrongdoers among business men,
public officials and labor leaders alike.
The principle is the same In the two cases.
Just as the blackmailer and bribegiver
stand on the same evil eminence of in
famy, so the man who makes an enormous
fortune by corrupting legislators and mu
nicipalities and fleecing his stockholders
and the public stands on the same moral
level with the creature who fattens on the
blood-money of gambling houses and the
saloon. Moreover. In the last analysis, both
kinds of corruption are far more Intimately
connected than would at first sight appear;
corrupt business and corrupt politics act and
react with ever-Increasing debasement, one
on the other; the corrupt head of a cor
poration and the corrupt labor leader are
both in the same degree the enemies of
honest corporations t and honest labor
unions; the rebate-taker, the franchise-trafficker,
the manipulator of securities, the
purveyor and protector of vice, the black
mailing ward boss, the ballot-box stuff er,
the demagogue, the mob leader, the hired
hully and the mankiller all alike work at
the same web of corruption, and all alike
should be abhorred by honest men.
The "business" which is hurt by the
movement for honesty is the kind of busi
ness, in the long run, it pays the country
to have hurt. It is the kind of business
which has tended to make the very name
"high finance" a term of scandal, to which
all honest American men of business should
join in putting an end.
Rich Crooks Oppose Labor Law.
The special pleaders for business dis
honesty, in denouncing the present admin
istration for enforcing the law against the
huge and corrupt corporations which have
defied the law. also denounce it for en
deavoring to secure sadly needed labor
legislation, such -as a far-reaching law
making employers liable for Injuries to their
employes. It Is mete and fit that the apol
ogists for corrupt wealth should oppose
every effort to relieve the weak and help
less people from crushing misfortune brought
upon them by injury In the business from
which they gain a bare livelihood. The
burden should be distributed. It is hypo
critical baseness to speak of a fflrl who
works In a factory where dangerous ma
chinery is unprotected as having the
"right" freely to contract to expose herself
to the dancers of life and limb. She has
no alternative but to suffer want or else
to expose herself to such dangers, and when
she loses a hand or Is otherwise maimed or
disfigured for life, it 1b a moral wrong that
the whole burden of the risk necessarily in
cidental to ' the business should be placed
with crushing weight upon her weak shoul
ders, and ail who profit by her work escape
scot free. This Is what" opponents of a Just
employer's liability law advocate; and It is
consistent thst they should usually also ad
vocate Immunity for those most dangerous
members of the criminal class the crim
inals of great wealth.
Honor to Fearless Judges.
Our opponents have 'recently been bitterly
criticising the two judges referred to In the
accompanying communications from the
Standard Oil Company and the Santa Fe
Railroad for having imposed heavy fines on
these two corporations; ana yet the same
critics of these two judges exhaust them
selves In denouncing the most respectful and
cautious discussion of the official action of
a judge which results in immunity to
wealthy and powerful wrongdoers or whlcn
renders nugatory a temperate effort to bet
ter the conditions of life and work among
those of our fellow-countrymen whose need
Is greatest. Most certainly It behooves us
all to treat with the utmost respect the high
office of judge, and our judges as a whole
are brave and upright men. Respect for
the- law must go hand in hand with re
spect for the judges, and as a whole It Is
true now as In tho past, that the Judges
stand In character and service above ail
other men among their fellow-servants of
the public. There Is all the greater noed
that the few who fail in this groat office,
who fall below this high standard of Integ
rity, of wisdom, of sympathetic understand
ing and of courage, should have their eye
opened to the needs of their countryman. A
jndg' who on the bench either truckles to
the mob and shrinks from sternly repress
ing . violence and disorder, or bows down
before a corporation; who fails to stand up
valiantly for the rights of property on the
one hand, or on the other by misuse of the
process of injuunction or by his attitude
towards all measures for the betterment of
the conditions of laborers makes the wago
workor feel with bitterness that the - courts
are hostile to him: or who fails to realize
that all public servants in their several
stations must strive to stop the abuses of
the criminal rich such a man performs an
even worse service to the body politic than
tho legislator or executive who goes wrong.
The judg who docs his full duty well
stands higher and renders a better service
to the people than any other public servant;
he is entitled to greater respect and. If he
is a true servant of the people. If he is up
right, wise and fearless, he will unhesi
tatingly disregard even the wishes of the
people. If they conflict .with the eternal
principles of right as against wrong. Hs
must serve the people; but he must serve
his own conscience first.
All honor to such a Juds and all honor
cannot be rendered him if it is rendered
equally to his brethren who fall immeas
urably below the hixh ideals for which lie
stands. Untruthful criticism is wicked ar
all times and whoevor may be the object,
but It Is peculiarly flagrant iniquity when
a judge Is the object. No man should lightly
criticize a judge: no man should, even in
his own mfnd condemn a judge unless he la
RHEUMATISM
Makes a man feel old before his time,
giTes him
ciruuiauou,
to the
(5 W- A-V needs
sure of the facts. If a Judge is assailed fof
standing against popular folly and above
all for standing against mob violence, alt
honorable men should rally Instantly to
his support. Nevertheless. If he clearly
falls to do his duty by the public in dealing
with lawbreaking corporations, lawbreaitin:
men of wealth, he must expect to feel the
weight of public opinion: and this is but
right, for except in extreme cases this is
the only way In which he can be reached
at all. No servant of the people has tt
right to expect to be free from just and
honest criticism.
JurpoB to Secure Honesty.
The opponents of the measures we cham
pion single out now one and now another
measure for special attack and speak as if
the movement in which we are engaged was
purely economic. It has a large economic
side, but it is fundamentally an ethical
movement. It is not a movement which
can be completed iu one year or two or
three years; it la a movement which must
be persevered in until the spirit which lies
behind it sinks deep Into the heart and
conscience of the whole people. It is al
ways Important to choose the right means
to achieve our purpose, but it Is even more
Important to keep this purpose clearly be
fore us; and this purpose is to secure Na
tional honesty in business and in politics.
We do not subscribe to the cynical be
lief that dishonesty and unfair dealing are
essential to business success and are to ho
condoned when the success is modem t.;
and applauded when the success is great.
The methods by which the Standard Oil
people and those engaged in the other
combinations of which I have spoken above
have achieved great fortunes can only h
Justified by the advocacy of a system of
morality which would also justify every
form of criminality on the part of a labor
union and every form of violence, corrup
tion and fraud, from murder to bribery
and ba Hot-box stuffing In politics. We
are trying to secure equality of opportunity
for all; and the struggle for honesty H
the same whether it is made on behalf of
one set of men or another.
in the Interest of the small settlers and
landowners, and against the embittered op
position of wealthy owners of huge wan
dering flocks of sheep, or of. corporations
desiring to rob the people of coal aad tim
ber, we strive to put an end to the theft
of public land In the West. When we
do this, and protest against the action of all
men, whether in public life or in private
life, who either take port in or refuse to
try to stop such theft, we are really en
gaged in the same policy as when we en
deavor to put a stop to rebates or pre
vent the upgrowth of uncontrolled mo
nopolies. Our effort is simply to enforce
the principles of common honesty and
common sense. It would indeed be ill for
the country should there be any halt In our
work.
Justice to Those , Who goo in Law.
The laws must In the future be ad
ministered as they are now being adminis
tered, so that the Department of Justice
may continue to be what tt now is, in
very fact, the Department of Justice, wher
so far as our ability permits, . justice In
meted out with an even hand to great and
small, rich and poor, weals and strong.
Moreover, there should be no delay in sup
plementing the laws now on the statute
books by the enactment of further legisla
tion as outlined in the message I sent to
the Congress on Its assemblage. Under the
existing laws, much, very much, has been
actually accomplished during; the past six
years, and It has been shown by actual ex
perience that they can be enforced against
the wealthy corporation and the richest and
most powerful manager or manipulator of
that corporation as rigorously and as fear
lessly as against the humblest offender.
Above all, they have been enforced against
the very wrongdoers and agents of
wrongdoers who have for so many years
gone scot free and flouted the laws with
impunity, against great law-defying cor
porations of Immense wealth, which within
the laet half dozen years have treated
themselves and have expected others to
.treat them as being beyond and have
checked the law. It Is desperately neces
sary to secure to the representatives of
tho National Government full power to deal
with the great corporations engaged in in
terstate commerce and above all with the
great Interstate common carriers.
Three Courses to Choose From.
Our people should clearly recognize, while
there are difficulties in any course of con
duct to be followed In dealing with these
great corporations, these dlfucultles must
be faced, and one of three courses fol
lowed. The first course is to abandon all effort
at legislation In the Interest of the general
public and to permit a return to the utter
lack of control which would obtain if they
were loft to the common law. I do not
for one moment believe that our people
would tolerate this position. Tho extraor
dinary growth of modern industrialism ha
rendered, the common law, which grew up
until another was adopted to deal with to
tally different conditions, in many respects
Inadequate to deal with the new conditions.
These new conditions make it necessary to
shackle cunning as In the past we have
shackled force. The vast . individual and
corporate fortunes, the vast combinations uf
capital, which have marked the develop
ment of our Industrial system create new
conditions and necessitate a change from
tho old attitude of the state and the Na
tion toward rules regulating thf acquisi
tion and untrammeled business uso of prop
erty, in order both that property may be
adequately protected and that at the same
tlmo those who hold it may be prevented
from wrongdoing.
The MPrond and third courses are to have
the regulation undertaken either by the Na
tion or by the states. Of course, In any
event both the National Government and
the several state governments must each
do its part and each can do a rertn in
amount that the other cannot do. while the
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