Los Angeles herald. [microfilm reel], December 04, 1907, Page 4, Image 4

About Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911

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4
ROOSEVELT ADVOCATES INCREASE IN NAVY AS GUARANTEE OF PEACE
IMPRESS ALL
WITH POWER
HIS PROJECT
ASKS THAT PAY OF ARMY BE
INCREASED
OFFICERS RECEIVE TOO LITTLE,
HE ABBERTS
Dealing with Problemu of Armament,
Chief Executive Appears to Favor
' Addition Rather Than
Decrease
(Contlaned from Vmgr One.)
Following is tho text of President
¦Roosevelt's mesage to congress:
•To the Senate and House of Representa
tives: f
"No nation has greater resources than
ours, and I think it can be truthfully said
that the citizens of no nation possess
greater energy and Industrial ability. In
no nation are the fundamental business
conditions sounder than in ours at th>
rery moment; and it is foolish, when such
la the case, for people to hoard money
instead of keeping it in sound banks: Tor
1 Is suoh hoarding that is the Immedla'o
occasion of money stringency. Moreover,
as a rule, the business of our people is
conducted with honesty and probity, and
this applies alike to farms and factories,
io railroads and banks, to all our lßg'.ti
mate commercial enterprises.
"In any large body of men, however,
there are certain to be some who are dis
honest, and if the conditions are such that
these men prosper or commit their mis
deeds with impunity, their example is a
very evil thing for the community. Where
these men are business men of great sa
gacity and of temperament both unscru
pulous and reckless, and where the condi
tions arc such that they act without
supervision or control and at first with
out effective check from public opinion,
they delude many innocent people into
making investments or embarking )n
kinds of business that are really unsoun'l.
"When the misdeeds of these success
fully dishonest men are discovered, suf
fering comes not only upon them, but
Upon the innocent men whom they have
misled.. It is a painful awakening, when
ever it occurs; and, naturally, when It
does occur those who suffer are apt to
forget that the longer it was deferred th 3
more painful it would be. In the effort to
punish the guilty it i» both wise and
proper to endeavor so far as possible tc>
minimise the distress of those who hava
been misled by the guilty. Tet it Is not
possible to refrain because of such dl*
tress from starving to put an end to the
misdeeds that are the ultimate causes of
the suffering, and, as a means to this
end. where possible to punish those re
sponsible for them. There may be honest
differences of opinion as to many govern
mental policies; but surely there can be
no such differences as to the need of
unflinching perseverance in the war
against successful dishonesty.
INTERSTATE COMMERCE
"No small part of the trouble that wo
have comes from carrying to an extremu
the national virtue of self-reliance, of
independence in initiative and action. It
is wise to conserve this virtue and to
provide for its fullest exercise, compatible
with seeing that liberty does not become
a liberty to wrong others.
"Unfortunately, this is the kind of lib
erty that the lack of all effective regula
tion inevitably breeds. The founders of
the constitution provided that the national
government should have complete and sole
cntrol of interstate commerce. There
was then practically no interstate busi
ness save such as was conducted by
water, and this the national government
at once proceeded to regulate in thorough
going and effective fashion.
"Conditions have now so wholly changed
that the interstate commerce by water is
Insignificant compared with the amount
that goes by land, and almost all big busi
ness concerns are now engaged in inter
state commerce. As a result, it can bo
tut partially and imperfectly controlled
or regulated by the action of any one of
the several 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 needed control. This does
not mean that there should be any exten
tlon of federal authority, for such author
ity already exists under the constitution
ir amplest and most far-reaching form:
but it does mean that there should be an
extension of federal activity. This is not
advocating centralization. It is merely
looking facts in the face, and realizing
that centralization in business has al
ready come and cannot Tie avoided or un
done, and that the public at large can
only protect itself from certain evil effects
of this business centralization by provid
ing better methods for the exercise of
control through the authority already
centralized in the national government by
the constitution itself.
"There must be no halt in the healthy
constructive course of action which this
r.atlon has elected to pursue, and has
steadily pursued, during the last six
years, as shown both in the legislation of
the congress and the administration of
the law by the department of justice.
The most vital need is in connection with
the railroads. As- to these, in my judg
ment there should now be either a na
tional incorporation act or a law licensing
railway companies to engage in interstate
commerce upon certain conditions. The
law should be so framed as to give to the
interstate commerce 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 physi
cal valuation of any railroad.
"As I stated in my message to the con-
PXBSS a year ago, railroads should be
given power to enter Into agreements,
Biibject to these agreements being made
public in minute detail and to the consent
of the interstate commerce commission
being first obtained. Until the national
government assumes proper control of in
terstate commerce, in the exercise of the
authority it already possesses. It will he
impossible either to give to or to get
from the railroads full justice. The rail
roads and all other great corporattona will
do well to recognize that this control must
come; the only question is as to wh.it
jrovernmental body can most wisely exer
cise it. The courts will determine tho
limits within which the federal authority
can exercise it, and there will still remain
ample work within each state for the rail
way commission of that state; and the
national interstate commerce commission
will work In harmony with the several
LOS ANGELES HERALD: WEDNESDAY MORNING, DECEMBER 4, 1907.
PREBIDENT ROOSEVELT
btate commissions, each within its own
province, to achieve the desired end.
SHERMAN ANTI-TRUST LAW
"Moreover, In my judgment there should
be additional legislation looking to the
proper control of the great business con
cerna engaged In interstate business, this
control to be exercised for their own bene
fit and prosperity no less than for tha
protection 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 condi
tions are such that combination Is not
only necessary but Inevitable. It Is bo 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 corporations,
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 managed
Is a source of good and not evil. When
ever in either there is evil, it should be
promptly held to account; but it ehould
receive hearty encouragement to 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 pre
mium upon public immorality, by under
taking to forbid honest men from doing
what muet be done under modern busi
ness conidtions, co that the law itself
provides that its own infraction must be
the condition precedent upon business
success. To aim at the accomplishment
of too much usually means the accom
plishment of too little, and often the do
ing of positive damage.
"The anti-trust law should not be re
pealed; but it should be made both more
efficient and more in harmony with ac
tual conditions. It should be so amended
as to forbid only the kind of combination
which does harm to the general public,
such amendment to be accompanied by,
or to be an incident of, a grant of sup
ervisory power to the government over
these big concerns engaged in interstate
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 gov
ernment officials. A beginning has al
ready been made for puch supervision by
the establishment of the bureau of cor
porations.
"The anti-trust law should not pro
hibit combinations that do no Injustice to
the public, stll! less those the existence
of which la on the whole of benefit to the
public. But even If this feature of the
law were abolished, there would remain
as an equally objectionable feature the
difficulty and delay now incident to its
enforcement. The government must now
submit to irksome and repeated delay be
fore obtaining a flnal decision of the
courts upon proceedings instituted, and
even a favorable decree may mean an
empty victory.
"Moreover, to attempt to control thute
corporations by lawsuits means to im
pose upon both the department of Jus
tice and the courts an impossible 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 rot merely by means of lawsuits.
Tho design should be to prevent the
abuses incident to the creation of un
healthy and Improper combinations, in
stead of waiting until they are In exist
ence and then attempting to destroy
them by civil or criminal proceedings.
Against Monopolies
"A combination ehould not be tolerated
if it abuse the power acquired by com
bination to the public detriment. No
corporation or association of any kind
should be permitted to engage in foreign
or interEtate commerce that is formed for
the purpose of, or whote operations
create, a monopoly or general control of
the production, sale or distribution of
any one or more of the pqime necessities
of life or articles of general use and
necessity. Such combinations are against
public policy; they violate the common
law; the doori of the courts are closed
to those who are parties to them, and I
believe the congress can close the chan
nels of interstate commerce against
them for its protection. The law should
make ite prohibitions and permissions at
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 , inter
pretations by the courts. Among the
points to be aimed at thou'.d be the pro
hibition of unhealthy competition, such as
by rendering service at- an actual loss
for the purpose of crushing out competi
tion, the prevention of inflation of cap
ital, and the prohibition of a corpora
tion'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 sub
mitted to and approved by some appro
priate government body.
"The congress has the pewer to charter
corporations to engage in interstate and
foreign commerce, and a general law can
be enacted under the provisions of which
existing corporations could take out fed
eral charters and. new federal corpora
tions could be created. An essential pro
vision of such a law shou'.d be a method
of predetermining by some federal board
or commission whether the applicant for
a federal charter vas an association or
combination within the restrictions of the
federal law.
"Provision should alsd be made for
complete publicity in all matters affecting
the public and complete protection to the
Investing 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 interstate
corporations might be enacted; or a
combination of the two might be tried.
The supervision established might be
analogous to that now exercised over
national banks. At least, the anti-trust
act should be supplemented by specific
prohibitions of the methods which experi
ence has shown have been of most ser
vice in enabling monopolistic combina
tions to crush out competition. The real
owners of a corporation should be com
pelled to do business in their own name.
The right to hold stock in other corpora
tions should hereafter be denied to in
terstate corporations, unless on approval
by the proper government officials, and a
prerequisite to such approval should be
the listing with the government of all
owners and stockholders, both by the
corporation owning such stock and by
the corporations in which euch stock is
owned.
W :ntß Power of Supervision
"To confer upon the national govern
ment, in connection with the amendment
I advocate In the anti-trust law, power
of supervision over big business con
cerns engaged in Interstate commerce,
would benefit them as it has benefited the
national banks. In the recent business
crisis it is noteworthy that the institu
tions which failed were institutions which
were not under the supervision and con
trol of the national government. Those
which were under national control stood
the test.
"National control of the kind above ad
vocated would be to the benefit of every
well managed railway. From the stand
point of the public there is need for ad
ditional tracks, additional terminals, and
improvements in the actual handling of
the railroads, and all this as rapidly as
possible. Ample, safe and speedy trans
portation facilities are even more neces
sary than cheap transportation. There
fore, there is need for the investment of
money which will provide for all these
things while at the same time securing
as far as is possible better wages and
shorter hours for their employes. There
fore, while there must be Just and rea
sonable regulation of rates, we should be
the first to protest against any arbitrary
and unthinking movement to cut them
down without the fullest and most care
ful consideration of all interests con
cerned and of the actual needs of the
situation. Only a special body of men
acting for the national government under
authority conferred upon it by the con
gress is competent to pas: judgment on
such a matter.
"Those who fear, from any reason, the
extension of federal activity will do well
to study the history not only of the
national banking act but of the pure
food law, and notably the meat inspec
tion law recently enacted. The pure food
law was opposed so violently that its
passage was delayed for a decade; yet It
haa worked unmixed and immediate
good.
"The meat Inspection law was even
more violently assailed; and the same
men who now denounce the attitude of
the national government in seeking to
oversee and control the workings of in
terstate common carriers and business
concerns, then asserted that we were
"discrediting and ruining a great Amer
ican industry." Two years have not
elapsed, and already it has become evi
dent that the great benefit the Uiw con
fers upon the public is accompanied by
an equal benefit to the reputable pack
ing establishments. The latter are better
off under the law than they were with
out it. The benefit to interstate common
carriers and business concerns from the
legislation I advocate would be equally
marked.
PURE FOOD LAW
Incidentally, In tho passage of the pure
food law the action of the various state
fcod and dairy commissioners showed in
striking fashion how much good for tha
whole people results from the hearty co
operation of tho federal and state offi
cials in securing a given reform. It la
primarily to the action of these etate
commissioners that we owe the enact
ment of this law; for they aroused the
people, first to demand the enactment
and enforcement of state laws on tha
subject, and then the enactment of the
federal law, without which the state
laws were largely Ineffective. There must
be the closest co-operation between the
national and state governments In admin
istering these laws.
CURRENCY
"I again urge on the congress the need
of Immediate attention to this matter.
We need a greater elasticity In our cur
rency; provided, of course, that we rec
ognize the even greater need of a safe
and secure currency. There must always
be the most rigid examination by the
national authorities. Provision should be
nfade for an emergency currency. Tho
emergency issue should, of course, bo
made with an effective guaranty, nnd
upon conditions carefully prescribed by
the government.
"Such emergency Issue must be based
on adequate securities approved by the
government, and must be Issued ur.der a
heavy tax. This would permit currency
being issued when the demand for it was
urgent, while securing its retirement as
the demand fell off. It is worth Investi
gating to dotermlne whether officers und
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
efteot should be enacted for the District
of Columbia and the territories.
"Yet we must also remember that even
the wisest legislation on the subject can
only accomplish a oertaln amount. No
legislation can by any possibility guar
antee the business community against the
results of speculative folly any mure
than it can guarantee an individual
against the results of his extravagance.
When an individual mortgages his house
to buy an automobile he Invites disas
ter; nnd when wealthy men, or men who
pose as such, or are unscrupulously or
foolishly eager to become such, indulge in
reckless speculation— especially if it is ac
companied by dishonesty— they Jeopardize
not only their own future but the future
of all their innocent fellow citizens, for
they expose the whole business communi
ty to panic and distress.
REVENUE
"The income account of the nation is
in a most satisfactory condition. For the
six fiscal years ending with the Ist of
July last the total expenditures and reve
nues of the national government, exclu
sive of the postal revenues and expendi
tures, were, in round numbers, revenues
$3,466,000,000 and expenditures $3,275,000,000.
The net excess of Income over expendi
tures, Including in the latter the fifty
millions expended for the Panama canal,
was one hundred and ninety million dol
lars for six years, an average of about
thirty-one millions a year. This repre
sents an approximation between Income
and outgo which It would be hard to Im
prove. The satisfactory working of the
present tariff law has been chiefly re
sponsible for this excellent showing. Nev
ertheless, there is an evident and con
stantly growing feeling among our people
that the time Is rapidly approaching when
our system of revenue legislation must be
revised.
THE TARIFF
"This country is definitely committed
to the protective system and any effort
to uproot it could not but cause wide
spread industrial disaster. In other
words, the principle of the present tariff
law could not with wisdom be changed.
But In a country of auch 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
revenue le 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 should be approached
purely from a business standpoint; 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 sel
fish and factional motives. The sole con
sideration should be to see that the sum
total of changes represents the publio
good. This means that the subject can
not with wisdom be dealt with in the
year preceding a presidential 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.
INHERITANCE TAX
"When our tax laws are revised the
question of an Income tax and an inheri
tance tax ehould receive the careful at
tention of our legislators. In my Judg
ment both 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 su
preme court; while in addition it Is a dif
ficult tax to administer in its practical
working, and great care would have to
be exercised to see that it was not
evaded by the very men whom it was
most desired to have taxed, for if so
evaded it would, of course, be worse than
no tax at all; as the least desirable of ail
taxes is the tax which bears heavily upon
the honest as compared with the dishon
est man.
"Nevertheless, a graduated income tax
of the proper type would be a desirable
feature of federal taxation, and it is to
be hoped that one may be devised which
the supreme court will declare constitu
tional. The inheritance tax, however, Is
both a far better method of taxation, and
far more important for the purpose of
having the fortunes of the country bear
corresponding Increase and burden of tax
ation.
The government has tho absolute right
to decide as to the terms upon which a
man shall receive a bequest or devise
from another, and this point in the devo
lution of property is especially appro
priate for the imposition of a tax. Laws
imposing such taxes have repeatedly been
placed upon the national statute books
and as repeatedly declared constitutional
by the courts; and these laws contained
the progressive principle, that is, after a
certain amount is reached the bequest or
gift, in life or death, is increasingly bur
dened and the rate of taxation is in
creased in proportion to the remoteness
of blood of the man receiving tho be
quest.
Principles Recognized
"These principles are recognized al
ready in the leading civilized nations of
the world. In Great Britain all the es
tates worth $5000 or less are practically
exempt from death duties, while the in
crease is such that when an estate ex
ceeds five millions of dollars In value
and passed to n distant kinsman or
stranger In blood the government receives
nil toid an amount equivalent to nearly
a "fifth of the whole estate. In France
so much of an inheritance as exceeds
$10,000,000 pays over a fifth to the state
If It passes to a distant relatives.
"The German law is especially interest
ing to us because it makes the inheritance
tax an Imperial measure while nllottlng
to the Individual states of the' empire a
portion of the proceeds and permitting
them to Impose taxes in addition to those
Imposed by the imperial government.
Small inheritances are exempt, but the
tax Is so sharply progressive that when
the inheritance is still not very large,
provided it is not an agricultural or a
forest land, It Is taxed at the rate of
25 per cent if it goes to distant relatives.
"There is no reason why in the United
States the national government should
not impose inheritance taxes in addition
to those Imposed by the states, and when
we last had an Inheritance tax about one
half of the states levied such taxes con
currently with the national government,
making a combined maximum rate, in
some cases, as high as 25 per cent: The
French law has one feature which Is to
be heartily commended. The progres
slvo principle Is so applied that each
higher rate Is Imposed only on the ex
cess above the 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.
Progressive Tax Good
"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 emc.U fortune. No ad
vantage comes either to the country as
a whole or to the Individuals Inheriting
the money by permitting the transmis
sion in their entirely of tho er.ormo""
fortunes which would be affected by such
a tax; and as an Incident to Its function
of revenue raising, such a tax would
help to preserve a measurable equality
of opportunity for the people of the gen
erations growing to manhood.
"We have not the slightest sympathy
with that socialistic Idea which would
try to put laziness, thrlftlessness 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 upon the weakest, upon
those least able to shift for themselves.
But proposals for legislation such as
herein advocated are directly opposed
to this class of socialistic theories.
"Our aim Is to recognize what Lincoln
pointed out: The fact that there are
some respects in which men are obvi
ously not equal; but also to insist that
there should be an equality of self-res
pect and of mutual respect, an equality
of rights before the law, and at least
an approximate equality in the conditions
under which each man obtains the chance
to show tne stuff that is in him when
compared to his fellows.
ENFORCEMENT OF LAW
"A few years ago there was loud com
plaint that the law could not be invoked
against wealthy offenders. There is no
such complaint now. The course of the
department of. justice during the last
few y«ars nas been such as to. make It
evident that no man stands above the
law, that no corporation is so wealthy
that it cannot be held to account. The
department of justice has been so prompt
to proceed against the wealthiest male
factor whose crime was one of greed and
cunning as to proceed against the agita
tor who incites to brutal violence. Every
thing that can be done under the exist
ing law ani with the existing state of
public opinion, which so profoundly in
fluences 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 un
wittingly to break them, and so that the
real wrongdoer can be readily punished.
"Moreover, there must be the public
opinion back of the laws or the laws
themselves will be of no avail. At pres
ent, while the average juryman un
doubtedly wishes to see trusts broken
up and is quite ready to fine the cor
poration Itself, he Is very reluctant to
find the fact- proven beyond a reason
able doubt when it comes to sending to
Jail a member of the business community
for indulging In practices which are pro
foundly unhealthy, but which, uhfor
tunately the business community has
grown to recognize as well-nigh normal.
"Both the present condition of the law
and the present temper of Juries render
it a task of extreme difficulty to get at
the real wrongdoer in any such case,
especially by imprisonment. Yet It *is
from every standpoint far preferable to
punish tne prime offender by imprison
ment rather than to fine the corporation
with the attendant damage to stock
holders.
Against Sentimentality
"The two gre.-.t evils In the execution
of our criminal laws today are senti
mentality and technicality. For the lat
ter the remedy must come from the
hands of the legislatures, the courts and
the lawyers, The other much depend for
its cure upon the gradual growth of a
sound public opinion which shall Insist
that regnrd for the law and the demands
of reason shall control all other Influ
ences and emotions in the jury box. Both
of these evils must be removed or pub
lic discontent with, the criminal law will
continue. i
INJUNCTIONS
"Instances of abuse in the granting of
injunctions in labor disputes continue to
occur, and the resentment in the minds
of thiiS9 who feel that their rights are
being invaded and their liberty of action
and of speech unwarrantably restrained
continues likewise to grow. Much of the
attack on the use of the process of in
junction is wholly without warrant, but
I am constrained to express the belief
that for some of it there is warrant.
"This question is becoming more and
more one of prime importance, and un
less the courts will tnemselves deal with
it in effective manner it is certain ulti
mately to uemand some form of legisla
tive action. It would be moat unforaun
ate for -our social welfare if we should
permit many honest and law-abiding
citizens to feel that they had just cause,
for regarding our courts with hostility.
I earnestly commena to the attention of
the congress this matter, so that some
way may be tlovisea which will limit the
abuse of injunctions and protect those
rights which from time to time it un
warrantably Invades. Moreover, dis
content is often expressed with the use
of the process of injunction by the
courts, not only In labor disputes but
where state laws are concerned. I re
frain from discussion of this question, as
I am informed that It will soon receive
the consideration of the supreme court
"The federal courts much, of course,
decide ultimately what are the respective
"The federal courta must, of course,
tlon with any law, state or national, and
they must desldo definitely and finally
In matters affecting individual citizens,
not only as to the rights and wrongs of
labor but as to the rights and wrongs
of capltr.; and the national government
must alwhys see that the decision of the
court is put into offect.
"The proc is of injunction Is an essen
tial adjunct of the court's doing Its work
wel, and as preventive measures are al
ways better than remedial, the use use
of the process is from every standpoint
commendable. But where It Is reckless
ly 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 neces
sary power. The court's decision must
be final; the protest is only against the
conduct of Individual judges in need
lessly anticipating such final decision,
or in the tyrannical use of what is nom
inally a temporary Injunction to accom
plish what Is in fact a permanent de
cision.
ACCIDENTS
"The loss of life and limb from, rail
road accidents in this country has be
come appalling. It is a subject of which
the national government should take
supervision. It might m well to begin
by providing for a federal Inspection of
Interstate railroads somewhat along the
lines of federal inspection of steamboats,
although not going 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 report in detail
the causes thereof. Such an officer
should make it his business to get In
close touch with railroad operating men
so as to become thoroughly familiar with
every side of the question, the idea being
to work along tho lines of the Dresent
steamboat inspection law.
EMPLOYERS' LIABILITY
"The national government should be a
model employer. It should 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 lim
ited but definite compensation for acci
dents to all workmen within the scope
of the federal power. Including employes
of navy yards and arsenals. In other
words, a model employers' liability act,
far-reaching and thoroughgoing, should
be enacted which should apply to all
positions, public and private, over which
the national government has jurisdiction.
"The number of accidents to wage
workers, including- those that are pre
ventable 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 family to have the effect of
such an accident fall solely upon him;
and, on the other hand, there arc
—hole classes of attorneys who exist
only by inciting- men who may or may
not have been wronged to undertake
suits for negligence. As a matter of
fact a suit for negligence is generally
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 acci
dents by the employer would be auto
matic instead of being a matter for
law suits.
"Workmen should receive certain
and definite compensation for all acci
dents In industry Irrespective of negli
gence.
Serves Public
"The employer is the agent of the
public and on 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 Involved; 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 burders as well
as the benefits of Industry. By the
proposed law, employers would gain a
desirable certainly of obligation and
get rid of litigation to determine it,
while the workman and his family
would be relieved from a crushing load.
"With such a policy would fome in
creased care, and accidents would be
reduced In number. The national laws
providing for employers' liability on
railroads engag-ed in interstate com
merce and for safety appliances, as
well as for diminishing- the hours any
employe of a railroad should be per
mitted to work, should all be strength
ened wherever in actual practice they
have shown weakness; they should be
kept on the statute books in thorough
going form.
"The constitutionality of the em
ployers' liability act passed by the pre
ceding congress has been carried be
fore the courts. In two jurisdictions
the law has been declared unconstitu
tional, and in three jurisdictions Its
constitutionality has been affirmed.
Tho question has been carried to the
supreme court, the case has been heard
by that tribunal, and a decision is ex
pected at an early date. In the event
that the court should affirm the con
stitutionality Of the act, I urge further
legislation along- the lines advocated
in my message to the preceding con
gress.
"The practice of putting the entire
burden of loss to life or limb upon the
victim or the victim's family Is a form
of social Injustice in which the United
States -stands in unenviable promi
nence. In both our federal and our
state legislation we have, with few
exceptions, scarcely gone farther than
the repeal of the fellow-servant prin
ciple of the old law of ability, and In
some of our states even this slig-ht
modification of a complete outgrown
principle has not yet been secured.
"The legislation of the rest of the In
dustrial world stands out in striking
contrast to our backwardness In this
respect. Since 1895 practically every
country of Europe, together with
Great Britain, New Zealand, Australia,
British Columbia and the Cape of Good
Hope has enacted legislation embody
i-g in one form or another the com
plete recognition of the principle which
places upon the employer the entire
trade risk in the various lines of In
dustry. I urgo 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 the European countries, and which
will serve as a stimulus to the various
states to perfect their legislation In
this regard.
EIGHT-HOUR LAW
"The congress should consider the
extension of the eight-hour law. The
constitutionality of the present law
has recently been called into- question,
and the supreme court has decided that
the existing legislation is unquestlon
ably within the powers of the pongress.
The principle of the eight-hour day
should as rapidly and as far as practi
cable be extended to the entire work
carried on by the g-overnment; and tho
preseitf law should be amended to em
brace contracts on those public works
which the present wording of tho act
h*S boon construed to exclude. Tho
general introduction of the eight-hour
day should be the goal toward which
we should steadily tend, and the gov
ernment should set the cxamplo In this
respect.
INDUSTRIAL DISPUTES
"Strikes and lockouts, with their at
tendant loss and suffering, continue to
increase. For the flvo years ending
December 31, 1905, the number of
strikes was greater than those In any
previous ten years and was double tho
number In the preceding five years.
These figures Indicate the increasing:
need of providing some machinery to
deal with this class of disturbances in
the interest alike of the employer, tho
employe and the general public. I re
new my previous recommendation that
tho congress fnvorably consider tho
matter of creating: the machinery for
compulsory Investigation of such in
dustrial controversies as are of suf
ficient magnitude and of sufficient con
cern to the people of the country as a
whole to warrant the federal govern
ment In taking- action.
"The need for some provision for
such investigation was forcibly illus
trated during the past summer. A
strike of telegraph operators seriously
Interfered with telegraphic communi
cation, causing great damage to busi
ness interests and serious inconven
ience to the general public. Appeal*
were made to mt^from many parts ot
the country, from city councils, from
boards of trade, from chambers of com
merce and from labor organizations,
urging- that steps be taken to termi
nate the strike. Everything that couM
with any propriety t>e done by a rep
resentative of Him g-bvernment wa-s
done, without avail, and for weeks th.i
public stood by and suffered without
recourse of any ltind. Had the ma
chinery existed and had there been au
thority for compulsory investigation ot
the dispute, the public would have been
placed In possession of the merits ot
the controversy and public opinion
would probably have brought about ,:i
prompt adjustment.
"Each successive step creating ma
chinery for the adjustment of labor
difficulties must be taken with; caution,
but we should endeavor to make pro
gress In this direction.
"The provisions of the act of IS9S
creating: the chairman of the interstate
commerce commission and the commis
sioner of labor a board of mediation In
controversies between interstate rail
roads and their employes has, for tho
first time, been subjected to seriou.j
tests within the past year, and tho
wisdom of the experiment has been
fully demonstrated. The creation of a
board for compulsory investigation In
cases where mediation fails and arbi
tration Is rejected is the next logical
step In a progressive program.
CAPITAL /s.ND LABOR
"It Is certatn that for some time %o
come there will be a constant increas ;
absolutely, and perhaps relatively, of
those among our citizens who dwell In
cities or towns of some size and wlv>
work for wages. This means that
there w^lll be an ever increasing need to
consider tne problems Inseparable from
a -great industrial civilization. Wher •
an immense and complex business, es
pecially in those branches relating to
manufacture, and transportation, 1*
transacted by a large number of capi
talists who employ a very much larger
number of wage-earners, the former
tend more and more to combine lnt'>
corporations and the latter into union?.
"The relations of the capitalist and
wage-worker to one another, and of each
to the general public, are not always easy
to adjust; and to put them and keei>
them on a satisfactory basis is one of th ¦•
most important and one of the most deli
cate tasks before our whole civilization.
Much of the work for the accomplish
ment of this end must be done by the in
dividuals concerned themselves, whethe.
slngly or in combination; and the on;
fundamental fact that must never be lost
track of Is that Jho character of the av
erage man, whether he be a man of
means or a man who works with hl<
hands, is the most important factor ii
solving 1 the proelem aright. But it ' i
almost equally important to remember
that without good laws it is also impos.
slblo to reach the proper solution.
"It is Idle to hold that without gouil
laws evils such a? child labor, as tho
overworking of women, as the failure t >
protect employes from loss of life d'
limb, can be effectively reached, an.."
more than the evils of rebates and stoe'e
watering can be reached without goo>l
laws. To fail to stop these practices b;/
legislation means to force honest men
into them, because otherwise the dishon
est who surely will take advantage of
them will have everything their own way.
If the states will correct these evils, well
and good; but tho nation must stand
ready to aid them.
employment of Children
"No question growing out of our rapid
and complex industrial development |H
more important than that of the employ*
ment of women and children. The pres
ence of women in industry reacts with
extreme directness upon the character of
the home and upon family life, and th->
conditions surrounding the employment
of children bear a vital relation to our
future citizenship. Our legislation in
those areas under the control of tho
congress is very much behind the legls •
lation of our more progressive states. A,
thorough and comprehensive measuro
should be adopted at this session of th>
congress relating to the employment of
women and children in the District of
Columbia and the territories.
"The investigation into the condition of
women and children wage-earners re
cently authorized and directed by tho
congress is now being carried on in tho
various states, and I recommend that tho
appropriation made last year for begin*
ning this work be renewed, in order than
we may have the thorough and compre
hensive investigation which the subject,
demands. The national government has
as an ultimate resort for control of child
labor the use of the Interstate commerce
clause to prevent the products of child
labor from entering into interstate com
merce. But before using this it ought
certainly to enact model laws on the sub
ject for the territories under its own
immediate control.
"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, yec
tho insistence upon honesty— not merely
technical honesty, but honesty In pur
pose and spirit — is an essential clement
in arriving at a right conclusion. Vice In
its cruder and moro archaic forms shocks
everybody; but there is very urgent need
that public opinion should be just as se
vere in condemnation of the vice which
hides itself behind class or professional
loyalty, or which denies that n is vice if
it can escape conviction in the- courts.
"The public and the representatives of
the public, the high officials, 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, ara
not those who commit the crimes known
| to and condemned by the uopular con-i