Show THE MESSAGE TO m CONGRESS president Makes Government Control of Corporations His Leading Theme I NO TALK OF TARIFF REVISION Recommends Free Trade With Wih The Philippines Except in Sugar and Tobacco r f LIFE INSURANCE SUPERVISION Should bo be h as Should II be ho Pow POI cr Our OUI 11 I InY ny X lL n 11 Increase B To o the th Senate Senale and Ind of oC Breen The Te people ople of oC this country coultry continue to enjoy enJo noy great rent prosperity Undoubtedly there will wi bo be ebb and flow fow In ouch Huch prosperity pro and this ebb and ull now flow will wll wi wille be e fet felt more moie or less by all al members member it jf C the community built both by the the tho undeserving tin tl wrath of orthe the I Lord ord tho wisdom of oC man manan can an not ot avail In II times of oC flood and drouth human can but Ingenuity par lIar v nil the A A A failure i li re of or crops Oll would w hurt rt nil all l of ua ui i i U tf the folly Coly or of man mats mars tin tl th well wel being bel ni then those who nr ar Innocent of oC the foly fol will wIl have to pa Ila Ilal part l rt of t the penalty nalty Incurred by thoss 3 who are guilty uly of oC the folly Coly A panic pa brought on by hy the speculative folly 01 or o part of oC the business bune community hurt the whole community nut lint such stoppage of ot welfare though It might b he severe evere would not be bi b lasting In the long bug run the one vital vial factor In Inthe the th Ih permanent prosperity of ot tho coun cout country try Ir Is j h the high Individual character r ul qC the average a 1 Ie American worker the av Ax a trace American citizen no matter mater whether his liI work bo bi b mental menial or man manual vat ual vii whether ho ha be farmer or wage worker business man or professional I man OUR INDUSTRIAL SYSTEM Differences of ot Wealth Mutt Iut Not XOI Blind BlindU Us VI U to In Pact of ot Shoring Sharing In our Industrial and social system the Interests of ot all al men are Ire re so o closely dosty cosely Intertwined that In tn the tI ma of a it 1 straight dealing mai lal who cha by his lila efficiency by b his hIl ingenuity Industry benefits himself must al iii also so 80 o benefit others Normally the man of lr C great KMit productive capacity who becomes rich by guiding the labor of bt many man other ot e emen men does docs BO SO by enabling ena them to 10 pro I duce dare more than they could without his hi guidance and both he ha and th they share sharo al y In the benefit which comes com aio Iho to the public at large larre The Tho Th super fact that the sharing may be he un unequal equal must never blind us ua to tn the under lying fact that there Is ii this thiM sharing and al that the benefit comes In sonic some IOle do ile grec ee to each man I an concerned Normally Normal me ne wage worker me the man of ot small m mean ans and the ali average consumer ni ns n well wel aa the average ler e producer are all dike Ilke helped by making conditions al such u h that the tho man of exceptional bush busi business bu bushne l ness nesa ne ability receives an nn exceptional re revard ward vard for tor his ability Something can bu bo l done lone by legislation to help hell the prosperity but bitt no Ito such help ot or a aler per permanently beneficial character can bo ho given to the less le hs s able ablo and less le fortu fortunate nate aate save nave as a the results of oC a n policy which shall hal Insure to the advantage ot of J all idi 11 Industrious and nad people who ho hoad art ad decently and this Is only another way Wi of or saying that Ihal any benefit benela which comes to tho tim lesl le able and less fortu nate must of oC necessity come como even moro morn to tn the more able and more fortunate If therefore the tile less lell fortunate man Is I moved by envy en of his moro fortunat brother to strike at the conditions un till der Mr which they have hae both bOlh though un unequally equally prospered the result will as assuredly be that while damage dama e may ma 1 coin COI al to the one struck at It I will 11 visit with sith nn an even heavier load the Iho th one wih who wh strikes the blow bl l Taken ns as a n whole We wo must nil all 11 go up or go ro down together CORPORATIONS CORPORA TI ONS Government Should Ihne Effective I Otter Ocr Them Yet Ye while not merely admitting but Insisting upon this it Is also 1180 trUe trus that where there here there Is II no governmental r re or supervision some Mome of oC the tho ex e men use their energies not e In was that tha are arc Ire for Cor the common good hut but In ways which tell tel against this com corn mon men good The fortunes amassed organization are now 0 n large lage and vest et such power In those that thit wield th nt as n to make It a 1 mat I t r I of oC necessity to give Ivo to 10 the Is h i to the government SOCI which presents the tite people ns ne a n whole wholesome some r power of oC supervision over their use UHe In order to Insure In a social and Industrial life every even ns Oll corporation should be b held rC l tt tl ble by and he be accountable to nt sovereign i strong enough to 10 control Us Its i am In no sense hostile to cor con V oration r tons This Is an age ege of oC combino ion en and any effort to all com corn matlon will 1 he bo not only useless us less al but In tn he end vicious because be ause aue of or tho the contempt ry rr r law which the failure Calure to enforce law Jaw inevitably produces produce We should more mor lr ver er recognise Ico nhe In tn cordial and ample ampie union abon the Immense good effected by agencies In a country such ns Oi urs un and tho wealth en eu and fidelity devoted to their ser Ie and therefore normally to 10 the ser fe of oC the public by hy their oM officers er and atil The corporation has come to 10 day Ila just as M the tite trade union hue has come o 0 stay Ila Each can do and nod done Ireat rent reat good Each should be lie lano fa fared a Fred red so 0 Ion long ns as 01 It docs does good But ach tach should be sharply Ihl I pi goO checked lut here there It I acts against law and justice STATE REGULATION Has It I U h UTo VII To Try Tryo to Get It I So 80 tb long an al tJ the n the th nation nUon I e kept upon nn an ho c bails ls no ne other question queston of oC Internal economy with which thu the Conness has hal the power to deal lai begins to 10 approach In Importance the matter of endeavoring to secure proper Industrial under nl which the Individuals and especially the th Ih great grell corporations doing tin nn Inter state st le business are lre to net Tho Tite he makers oi o t our national Constitution provided especially that tho the regulation of Inter Interstate Ilter state Itile commerce should hould come conic within the sphere phero of the general generl government The arguments tn in II favor Cor of their taking this stand were even en then overwhelming 4 Hut they the etc are fur far tal stronger today In it view of f the tite enormous development nt of ot great bu agencies usually cor potato POlte In form Corm Experience lies bus shown conclusively concu hel that It 1 useless l eless to try I to 10 get et nay any adequate regulation and anI of ot these hess t great corporations I IV Iy ly state action finch Ruch regulation und anti supervision can only be effectively ex cx exer er Cd by a sovereign sov whose lion tion ton Is coextensive with the tue field neld of oC work of r the corporations that Is II by the I believe belee that this title regulation aunt and Ind supervision can call be obtained by h I tho the enactment of lt law by the Congress If proves sl ble It will wi certainly be he necessary ul UI ultimately to confer In fullest C lesl form Corl such power upon the government Ly Iy a I proper amendment of the tue Constitution Const It I would obviously be he to endeavor to secure such Kuch an nil 11 amend amendment ment until It I Is I certain that the tho result reHI t can not irni b tI obtained under the Constitution ns RS It I now Is The laws hi WI of oC the tue Congress and of tho tue several l ra I states hitherto ns as ni passed upon by the courts have ha e resulted more often ofel In iii showing that the stales have no power 11 Ir thi th matter r than that the national govern government merit ment has 11 power so s 0 that there at nt pres present ent nt lit ati x ts n a very vry ry unfortunate condi condl tion ton of oC things under tinder which these great corpo doing an Interstate busi business ness occupy the tho position of subjects without n a sovereign neither any al state government nor the thc lie national government gove govern ment having effective control over them th m Our steady attn should be by IJ ton cautiously I and tuiti ald carefully un an hut but resolutely I persevered In Into into to 10 ii rt the thA sovereignty of the national government by h b affirmative action THi Tili Tt I Is only or I In form torm orni an nn Innovation In It Is lie If a I restoration for from the Ihl earliest l time such regu regulation lation of Industrial activities has b 1 1 recognized re In the action of ot the law Ir suit and all 11 hint I Or Jr r ro fr frIs Is tt ii to 10 HIMI 1 in t l the changed eh conditions In to elch ns ItS lS will wil prevent the tho jon on abdicating the powe It has ras ha hart rt ri Faed not lint mh In iii this coun caun country try tr hut but hit In Irs England heui and Bluer tills country became a ti 1 nation hat 1111 NATIONAL LAWS LAWSON ON SUBJECT Iato e or O l I tat I Thul TI us II III he heIt It has hus been a n misfortune that the na an national laws lana la I on this thU subject have bilk hith hitherto erto Ito been beel of at n a I negative l or 01 prohibitive muter mthr than iia I an au In kind arid and still more that th thy y have Ime In part sought Fought to prohibit h could not be le effectively prohibited and have hac In Iii part pari In II their prohibitions confounded what should bo hI I allowed and Int what should not be allowed It Ij l Is generally useless to try to prohibit all al restraint on Oh competition whether this restraint re be he reasonable or and amid where It Is not use useless useless less les It Is generally hurtful h he have ve that thit It Is H not nt n possible ade ado adequately ly to secure feure the enforcement of any law 11 oC kind by Incessant ap tip appeal appeal peal to the courts The department of oC justice jl has hal for Cor the last four years ers de devoted voted volel more attention to th tim enforce enforcement ment of or the antitrust legislation than Ihal to anything rise else el e has been ac tic accomplished marked ha hl been tho Urn moral mo I I effect of or the prosecution prosecution tion ton but hut It Is Increasingly evident that there th re will wi he be IJ a I ii very iery cr Insufficient In bw helle helleI I result In II tho the way of ot economic change The he successful ul prosecution of oC oCole one cute ole device to 10 evade the law Immedi Immediately develops develop another device delce to ac coir the sam sama purpose pun What Is Is lit not sweeping prohibition of o every ever arrangement good Hood or bad had which may nia tend to restrict competition hut but such adequate supervision and In regula tion ns as 5 win Wil prevent any all restriction 01 IL or competition from being to the detri detriment ment fluent of the tho public aa well iveli wel n 11 as such aunt supervision regulation ns its will wi pre prevent prevent vent ent other abuses In no IW way wa connect connected cOllect cOllected ed with wih restriction of oC competition Of or these abuses perhaps the chief al nl although though by Iy no means mealS the only one Is m generally Itself tho result of oC dishonest promotion of oC the myriad evils It brings In UH its Il train for fOl such stick overcapitalization often nn an Inflation that Invites bust busi business bustness ness panic minnie tt it I always conceals the true Irue relation of o the tho profit 1111 lt earned to tho the capital actually actual invested and It I cre creates cr ates a of o Interest t which Is lo a fertile cause of I Improper re In II r cI A limitation of oC wages It damages the small smal Investor discourages I ages thrift and Iges encourages gambling anil speculation while perhaps worst of all al Is I the tue nail and dishonesty 1 which It harm hann to morals Is IB worse Wor e than thul any 1 possible harm to material term I Interests imi ami nun the lie I debauch cry ery el of politics and business by great dishonest corporations Is l far Car worse WOne than any an actual material I I I evil they do 11 the tho public 10 the national cavern Oer I obtains in tn some ome manner which the lie of oC the Congress may 1 sug gest Iest proper control over Or the tire big SUI cor con engaged In Interstate com corn merce that Is over Ocr the th great majority of the big hi wilt will wil be Im mi possible to 10 deal adequately with these wih evils I rim ani fm well wel aware aare of oC the difficulties of or the legislation that I am suggesting anti and of at the limit need muted of at leId temperate timid and can CU toU action acton In Iu securing It Ii I I should emphatically protest against Improperly radical or hasty action The first thing to do 10 Is to deal with the great reM corpora thilI engaged engage In the business of oC Inter state transportation As I said snit sa Id In II my nuy 1 message of oC Dec nee 6 lust the Immediate and ald most pressing need so eo fai am as Is concerned la Is the leKs laton I II enactment In to Ji law 11 w of or some schema to secure s ure to 10 the th agents of oC the government such super stupor vision Islon and regulation of the rates charred charged bv hr the nf of the Iho I engaged In Interstate ax as shall Hhall l summarily and ami effectively ete tel prevent the Imposition of ot unjust or unreasonable rates rales It I must mUt Include putting a n com cent complete cm stop to 10 rebates In every eer shape tart arid all form Corl This Plus power to 10 regulate rates r es like all ni similar paw powers era over oer the bus bits ness world should be bc IW exercised with moderation caution euton and seif restraint wih but It I should exist eist so 80 that It can cnn bo be b effectively exercised when the need n arises ec REGARDING REMEDIES Somo Competent Body lod Should hate la ul The to be kept In mind Is that the power should be af nf and should houll be given to some administrative body bOd created by b the Iho Con Can Congress gre gross gress 8 If I given to the present Inter Interstate Iner Interstate state commerce or to a are re reorganized reorganized organized Interstate commerce commis commission ston sion such commission should be bo made unequivocally administrative I do rio not believe beleve In the government Interfering with private business more than Is I nee es essory ry I do not believe beleve In the gov 10 emment undertaking any an work which Continued on page 2 t T E MESS MESSAGE G TO ig 1 1 ran With propriety no i Q left Iett In ID hand Hut BUI n lo I l U ie v in IP II tin th Ih I Il from any alY l NI when w hel it utI M I hut hal 1 s are 4 sun url to o obtain n un tin In lt lS leM tt there I D tt I It I Is net hot rt hy th In hi II Indicate the thern rn t of tr the Ih t Uw la aw which should b b be enacted bu I 1 ill all a 1 II t u Ir Nt of o ol tl tI l Congress to tn t certain condi condl condition tion with which It ft I In t I do irile rl le to deal dealIn In n I jiw judgment the th Important wh m h such hourI eon n fl lain li hi that ol me 11 torn sort COl U body bd the th power po r to decide I n on h oust tU kIng being h before It tt I it II t rate It i at pre lire prescribed pr scribed rl d by h it n railroad IH h nd Ju t and ant If I f It IH 1 found to II bw 11 ii ii able ami then after full ul Investigation Inv of ot the thu complaint to II pr th the limit nt of lute tte beyond It ft I wt b b bi lawful to 10 go the thi rea ra 11 rut raa u 18 at It II in h culled |