rHE O’NEILL FRONTIER
D. H. CRONIN. Publisher.
PNEILL. NEBRASKA
w.— .i—... .....
Boston is still digging up Paul Revere
relics. Workmen employed In restor
ing the old Revere house at the North
End uncovered In the back yard the
old Paul Revere well. It shows a
diameter of four feet and six Inches,
while Its depth Is not yet determined,
as, of course. It had been filled up
completely. It proves to be entirely
planked In vertically, like an ordinary
water tank, with old oak-hewn plank.
In connection with the work that has
been going on there have been also
some other discoveries. Two pieces of
old Lowestoft china have been found,
one a part of a cup and the other a
rt of a saucer. In Borne excavating
the cellar there was found an old
half-dollar, also a big copper cent of
1144. __
West Virginia Is to make an experi
ment In a Jim Crow city. This city
has been laid out near Charleston, the
capital of the state, and it Is expeebed
that within a year It will contain a
population of several thousand. No
white person will be permitted to re
side within Its limits or to own prop
erty therein. In the midst of this little
Africa Is Bltuated the state colored
high school. Educational facilities will
be ample and there will be electrlo
lights, sewers and parks. The city will
bo governed, of course, by the negro
Inhabitants, and the whole state will
watch with Interest the progress of
the experiment as testing the canacity
•f the negro for eelf government.
The administration of the Prussian
railroads has recently experimented
with wireless telegraphic signals on the
line between Berlin and Beelltz, em
ploying a train of four cars carrying
antennae and receiving apparatus, the
transmitting apparatus being Installed
between Berlin and Sangerhausen. The
transmitting wire was suspended upon
telegraph poles for a distance of 200
tret, about a foot beneath the ordinary
telegraph wires. Within a distance of
about seven and a half miles on each
side of the transmitting station, the
signals were clearly and distinctly re
ceived on the moving train.
aii me principal railway companies
of Great Britain Issue railway tickets
made entirely of gold, which entitle the
holder to travel free by any class of
car and train, on any line and by any
■ystem In the British Isles. They are
the size of a EO-cent piece, but oval
In shape, and engraved with the rail
way company’s coat of arms, with the
holder’s name beneath, and are Intend
ed to be worn on watch chains. These
tickets can not be bought, but are pre
sented by the directors to persons who
have earned the railway companies'
gratitude.
The heaviest stag which has been
killed this season in Scotland was a
royal, which scaled 371 pounds. This
Immense beast was shot In Arran deer
forest by one of Lord and Lady Gra
ham’s guests at Brodick castle. The
■tags In Arran are remarkable both for
size and quality, and the forest carries
a heavy stock of red deer, and affords
Unit-rate sport. The shooting lodge on
the west side of the Island, where the
best stalking Is obtained during the
first month of the season, is covered
outside with over 200 pairs of deer
horns.
The Empress Eugenie treasures a
pen made from the quill of a golden
•agio's wing and richly mounted with
diamonds and gold, which was used at
her request by the fourteen plenipo
tentiaries who signed the Treaty of
J*arls In 1866. When the Hon. Mr.
ward, eldest son of Lord Bangor, wras
married some time ago the register
was signed with a quill pen which was
tised by the high contracting powers
In signing the Treaty of Vienna, and
which has several times been utilized
at weddings In the Ward family.
^ne Pennsylvania state nurseries, in
1906, sent out no fewer than 160,000
white pine seedlings, besides 400 pound’s
of seed, to be planted last spring. This
Is in addition to the extensive forestry
work under way at the cost of the
Pennsylvania railroad at Altoona, and
•f the Lehigh Coal and Navigation
company in, Schuylkill and Carbon
counties, and the work upon the state's
own reservations. This Is a good begin
ning for one of the ten states which
now have reservations.
Thackeray’s favorite poets were Gold
smith and the "sweet lyric singers,”
Prior, whom he thought the easiest, the
the most charmingly humorous
of English lyrical poets, and Gay, the
force of whose melody and artless ring
ing laughter he appreciated. He ad
mlred Pope, too: but while admitting
Miltons greatness thought him "such
» bore that no one could read him." It
w not surprising, therefore, that Thack
eray never essayed the "big bowwow
kind” of poetry.
Five hundred and fifty pounds was
Bald by a nobleman at the beginning of
the eighteenth century for a dog collar
A l'”.llar of silver’ with four
d’a"lon'jB' posting 200 guineas,
was sold to a society lady for her pet
pug dog. It Is fashionable In France
to put gold bracelets studded with
Jewels on the forelegs of poodles. The
- plain gold collars with jeweled settings
*?"! no„,es" thar> £20, while the jew
eled collars run to £100. The brace
lets cost from £2 to £70 each.
Seventeen pounds Is a long price to
jpay for a key, but this num has been
given by a member of the Rothschild
family for what may be said to be the
Burnt valuable key In the world. It is
marked with the arms of the Strnzzi
family and is believed to be the work
of the great Italian artist. Benvenuto
Cellini, "ho flourished In the sixteenth
century. The key is chiseled out of a
Block of steel, presenting two gro
tesque female figures and ornamented
with various scrolls.
Lord Kingsburg, lord justice clerk of
"‘tabled high rank among
^c,nff’.’0,or from Oe clrcum
•tance of his having Initiated more th in
forty vears ago, when a young and lit -
tie known man at the Scotch bar, the
agitation for the halfpenny post card
■ystem In the ITnited Kingdom.
' Mr. Singer, of sewing machine fame
paid *60.000 for a pair of opera glasses
The lenses are. of course, the hest ob
tainable but It was the fact that the
glasses were of solid gold, surrounded
■By a lyre Inerusted with diamonds and
aapphlres. that accounted for the price.
A Saxon firm has introduced a new
road-binding composition for prevent
! ins dust. It Is called npokonin. and is
•i mixture of the heavier residual oils
wtthhhlhh m* dl"t,'!n,,or> nf cool tar
With high boll In h vdrocarbons.
Taken by rail from Ballarat no-**,
to Melbourne, a collie appeared three
weeks later at its old home, havhm
*?”nd UVvay 0''er W ”•»- nf road!
I Which it had peter traveled before.
The wreck record of the Baltic sen Is
greater than that of anv other body of
■ water in the world. The average W
j #M » day throughout the year.
ROOSEVELT STANDS
FOR REGULATION OF
BIG CORPORATIONS
In Mestage Delivered Tuesday
He Urges a National In
corporation Act.
MONEY REFORM IS NEEDED
He Leaves It to Congress to Select
Plan, but Inclines Toward Guar
anty Fund for Protection—
Many Points Covered.
Washington, D. C„ Dec. 3,--Pres
ldent Roosevelt today sent his annual
message to the sixtieth congress, and
It was read in both branches of the
assembly. In part the message is as
follows:
The Senate and House of Represent
atives: No nation has greater re
sources 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 sound
er than in ours at this very moment;
and it is foolish, when such is the case,
for people to hoard money Instead of
keeping it in sound hanks; for It is
such hoarding that is the immediate
occasion of money stringency. More
over, as a rule, the business of our peo
ple is conducted with honesty and pro
bity, and this applies alike to farms
and factories, to railroads and banks,
to all our legitimate commercial enter
prises.
T_ I „ n# man Vl IHII OtrOI'
there are certain to be some who are
dishonest, and if the conditions are
such that these men prosper or com
mit their misdeeds with Impunity, their
example is a very evil thing for the
community. Where these men are
business men of great nagacity and of
temperament both unscrupulous and
reckless, and where the conditions are
such that they act without supervision
or control and at first without effective
check from public opinion, they delude
many Innocent people Into making In
vestments or embarking in kinds of
business that Rre really unsound. When
the misdeeds of these successfully dis
honest men are discovered, suffering
comes not only upon them, but upon the
Innocent men whom they have misled. It
Is a painful awakening, whenever It oc
curs; and, naturally, when it does oc
cur those who suffer are apt to forget
that the longer It was deferred the more
painful it would be. In the effort to
punish the guilty it is both wise and
proper to endeavor so far os possible to
minimize the distress of those who
have been misled by the guilty. Yet It
is not possible to refrain because of
such distress from striving to put an
end to the misdeeds that are the ulti
mate causes of the sufferings, and, as
a means to this end, where possible to
punish those responsible for them.
There may be honest differences of
opinion as to many governmental poli
cies; but surely there can be no such
differences as to the need of unflinch
ing perseverence in the war against
successful dishonesty.
(Here the president quotes from his
1905 message his declaration for the
square deal between corporations and
people and for the regulations of inter
state commerce to this end.)
I have called your attention in these
quotations to what I have already said
because I am satisfied that it is the
duty of the national government to em
body in action the principles thus ex
pressed.
Interstate Commerce.
nmuu puiv hi liiv uuuuic umi uu
have comes from carrying to an ex
treme the national virtue of self-re
liance, of Independence In initiative and
action. It Is wise to conserve this vir
tue and to provide for its fullest exer
cise, compatible with seeing that lib
erty does not become a liberty to
wrong others. Unfortunately, this Is
the kind of liberty that the lack of all
effective regulation inevttubly breeds.
The founders of the constitution pro
vided that the national government
should have complete and sole control
of Interstate commerce. There was
then practically no Interstate business
suve such as was conducted by water,
and this the national government at
once proceeded to regulate In thor
oughgoing and effective fashion. Con
ditions 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 business concerns ure now en
gaged In interstate commerce. As a
result. It cun be but partially and Im
perfectly controlled or regulated by the
uction of any one of the several slates;
such action inevitably tending to be
either too drastic or else loo lux, and in
either case Ineffective for purposes of
Justice. Only the national government
can In thoroughgoing fashion exercise
the needed control. This does not
nteun that there should be any exten
sion of federal authority, for
such authority already exists un
der the constitution hi amp
lest and most far-reaching form
but It does mean that there should be
an extension of federul activity. This
Is not advocating centralization. It is
merely looking tacts in the face, and
realizing that centralization In busi
ness has already conte and cannot be
avoided or undone, and that the pub
lic at large can only protect itself trotn
certain evil effects of this business
centralization by providing better
methods for Ihe exercise of control
through the authority already central
ized in the national government by the
constitution itself.
; There must be no halt In the
: healthy constructive course of ac
: tlon which this nation has elected
I : to pursue, and has steadily pur
; sued, during the last six years, as
; shown both in the legislation of
: the congress and the admlnistra
: tlon of the law by the department
: of justice. The most vital need is
: in connection with the railroads.
: As to these, in my Judgment there
; should now be either a national tn
: corporation act or a law licensing
: railway companies to engage In in
; terstate commorceuponcertaincon
: dittoes. THE LAW SHOULD HE
; SO FRAMED AS TO GIVE TO
: THE INTERSTATE COMMERCE
; COMMISSION POWER TO PASS
: UPON THE FUTURE ISSUE OF
: SECURITIES. WHILE AMPLE
: MEANS SHOULD HE PROVIDED
; TO ENABLE THE COMMISSION.
: WHENEVER IN ITS JUDGMENT
: IT IS NECESSARY TO MAKE A
; PHYSICAL VALUATION OF ANY
: RAILROAD.
Should Permit Pooling.
As I stated in my message to th(
congress a year ago. railroads shoult
be given power to enter Into agree,
menls. subject to these agreements be
tug made public In minute detail am
to the consent of the Interstate Com
merce commission being first obtained.
Until the national government as
sumes proper control of Interstate com
merce. in the exercise of the authority
| It already possesses, it will be Impos
sible either to give to or to get from the
railroads full Justice.
Sherman Anti-Trust Law.
Moreover, in my Judgment there
should be additional legislation look
ing to the proper control of the great
business concerns engaged In inter
state business, this control to be ex
ercised for their own benefit and pros
perity no less than for the protection
of investors and of the general public.
As I have repeatedly said in messages
to the congress and elsewhere, experi
ence has definitely shown not merely
the unwisdom but the futility of en
deavoring to put a stop to all busi
ness combinations. Modern industrial
conditions are such that combination
Is not only necessary but Inevitable. It
is so in the world of business Just as
it Is in the world of labor, and It Is
Idle to desire to put an end to all
corporations, to all big combinations
of capital, as to desire to put an end to
the combinations of labor. Corporation
and labor union alike have come to
stay. Each, If properly managed Is a
source of good and not evil. Whenever
In either there Is evil, it should be
promptly held to account; but It should
receive hearty encouragement so long
as it is properly managed. It Is pro
foundly Immoral to put or keep on the
statute books a law, nominally In the
Interest of public morality, that really
puts a premium upon public Immoral
ity, by undertaking to forbid honest
men from doing what must be done un
der modern business conditions, so that
the law itself provides that its own in
fraction must be the condition prece
dent upon business success. To aim at
the accomplishment of too much usual
ly means the accomplishment of too
little, and often the doing of positive
damage.
Forbid the Evil Combination.
(Here the president cited previous ex
pressions to the effect that the Sher
man anti-trust act is so framed that
the business of the country cannot be
conduct without breaking It.)
The antil-trust law should not :
; be repealed; but It should be made :
: both more efficient and more In :
; harmony with actual conditions. :
: It should be amended so as to ;
; forbid only the kind of combin- :
; ation which does harm to the gen- :
; eral public, such amendment to :
: be accompanied by, or to be an :
; Incident of, a grant of supervisory :
: power to the government over :
: these big concerns engaged In In- :
: terstate business. This should be :
: accompanied by provision for the :
: compulsory publication of accounts :
: and the subjection of books and ;
; papers to the inspection of the :
; government officials. A beginning :
: has already been made for such :
: supervision by the establishment :
; of the bureau of corporations. :
The anti-trust lav,- should not pro
hibit combinations that do no injustice
to the public, still less those the ex
istence of which is on the whole of
benefit >,o the public. But even if this
feature of the law were abolished,
there would remain as an equally ob
jectionable feature the difficulty and
delay now incident to its enforcement.
The government must now submit to
irksome and repeated delay before ob
taining a final decision of the courts
upon proceedings instituted, and even
a favorable decree may mean an empty
victory. Moreover, to attempt to con
trol these corporations by law suits
means to impose upon both the depart
ment of justice and the courts an Im
possible 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 admin
istered by an executive body, and not
merely by means of law suits. The de
sign should be to prevent the abuses
incident to the creation of unhealthy
and improper combinations, instead of
waiting until they are in existence and
then attempting to destroy them by
civil or criminal proceedings.
Condemns Trusts in Necessities.
; A combination should not be tol- ;
: erated if it abuse the power ac- :
; quired by combination to the pub- ;
: lie detriment. No corporation or :
: association of any kind should be ;
: permitted to engage in foreign or ;
: interstate commerce that is formed :
: for the purpose of, or whose op- ;
: orations create, a monopoly or gen- :
: eral control of the production, sale, :
; or distribution of any one or more :
: of the prime necessities of life or :
; articles of general use arid neces- :
: slty. Such combinations are ;
: against public policy; they violate :
: the common law; the doors of the :
: courts are closed to those who are :
; parties to them, and I believe the ;
: congress can close the channels of :
; interstate commerce against them :
: for its protection. The law should ;
: make its prohibitions and permis- :
; slons as clear and definite as pos- :
; slble, leaving the least possible ;
: room for arbitrary action, or al- ;
: legation of such action, on the part ;
; of the executive or of divergent ;
; interpretations by the courts. :
: Among the points to be aimed at :
: should be the prohibition of un- :
: healthy competition such as by :
; rendering service at ar. actual loss :
: for the purpose of crushing out :
; competition, the prevention of In- :
: llatlon of capital, and the prohi- ;
; bition of a corporation's making :
: exclusive trade with itself a con- :
: dition of having any trude with- :
: itself. Reasonable agreements be- ;
: tween, or combinations of corpora- :
; tions should be permitted, provided :
: they are first submitted to and ap- .
: proved by some appropriate gov- ;
: eminent body. :
THE CONGRESS HAS THE POW
ER TO CHARTER CORPOHATIONS
TO ENGAGE IN INTERSTATE AND
FOREIGN COMMERCE, ANt) A GEN
ERAL LAW CAN BE ENACTED UN
DER THE PROVISIONS OF WHICH
EXISTING CORPORATIONS COULD
TAKE OUT FEDERAL CHARTERS
AND NEW FEDERAL CORPORA
TIONS COULD BE CREATED.
License as an Alternative.
An essential provision of such a law
should be a method of predetermining
by some federal board or commission
whether the applicant for a federal
charter was an association or combi
nation within the restrictions of the
federal law. Provision should also be
made for complete publicity in all mat
ters affecting the public and complete
protection to the investing public and
the shareholders In the matter of issu
ing corporate securities. If an incor
poration law is not deemed advisable,
a license act for big interstate corpor
; ations might be enacted; or a combi
nation of the two might be tried. The
supervision established might be an
alogous to that now exercised over na
tional banks. At least, the anti-frust
act should oe supplemented by specific
| prohibitions of the methods which ex
perience has shown have been of most
service in enabling monopolistic com
binations to crush out competition. TJie
rpal owners of a corporation should be
compelled to do business in their own
name. The right to hold stock in other
corporations should hereafter be de
nied to interstate corporations unless
on approval by the proper government
officials, and a prerequisite to such ap
i prqval should be the listing with the
government of all owners and stock
holders, both by the corporation own
ing such stock and by the corporatioi
in which such stock is owned.
To confer upon the national gov
ernment, in connection with the amend
ment I advocate in the anti-trust law
power of supervision over big busines!
concerns engaged in Interstate com
merce, would benefit them as it hai
benefited the national banks. In th<
recent business crisis it is noteworthj
that the institutions which failed wen
institutions which were not under th<
supervision and control of the nationa
government. Those which were undei
national control stood the test.
Would Help the Railroads.
National control of the kind above
advocated would be to the benefit ol
every well managed railway. From
the standpoint of the public there is
Deed for additional tracks, additional
terminals, and improvements in the
actual handling of the railroads, and
all this as rapidly as possible. Ample,
safe and speedy transportation facili
ties are even more necessary than
cheap transportation. Therefore, there
1b 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. Therefore,
while there must be just and reason
able regulation of rates, we should be
the first to protest against any arbi
trary and unthinking movement to cut
them down without the fullest and
most careful consideration of all in
terests concerned and of the actual
needs of the situation. Only a spe
cial body of men acting for the na
tional government under authority con
ferred upon it by the congress is com
petent to pass Judgment on such a
[ matter.
Pure Food Lav/ a Success.
Those who fear, from any rea- :
: son, the extension of federal ac- :
: tivity 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 vio- :
: lently that its passage was de- :
: layed for a decade; yet it has :
: worker unmixed and immediate :
: good. The meat inspection law :
: was even more violently assailed; :
: and the same men who now de- :
: nounce the attitude of the na- :
; tlonal government in seeking to :
: oversee and control the workings :
: of interstate common carriers and :
; business concerns, then asserted ;
: that we were "discrediting and :
: ruining a great American Indus- :
: try.” Two years have not elapsed, ;
; and already it has become evident :
: that the great benefit the law con- :
; fers upon the public is accom- :
: plished by an equal benefit to the :
: reputable packing establishments. :
; The latter are better off under the :
: law than they were without it. The :
: benefit to interstate common car- :
: riers and business concerns from :
: the legislation I advocate would be :
: equally marked. :
Currency Reform Needed.
In my message to the congress a year
ago I spoke as follows of the currency:
"I especially call your attention to
the condition of our currency laws. The
national bank act has ably served a
great purpose in aiding the enormous
business development of the country,
and within ten years there has been an
increase in circulation per capita from
$21.41 to $33.08. For several years evi
dence has been accumulating that ad
ditional legislation Is needed. The re
currence of each crop season empha
sizes the defects of the present laws.
There must soon be a revision of them
because to leave them as they are
means to Incur liability of business dis
aster. Since your body adjourned
there has been a fluctuation in the in
terest on call money from 2 per cent,
to 30 per cent, and the fluctuation was
even greater during the preceding six
months. The secretary of the treasury
had to step in and by wise action put
a stop to the most violent period of
oscillation. Even worse than such
fluctuation is the advance in commer
cial rates and the uncertainty felt in
the Insufficiency of credit even at high
rates. All commercial interests suffer
during each crop period. Excessive
rates for call money In New York at
tract money from the interior banks
into the speculative field. This depletes
the fund that would otherwise be avail
able for commercial uses, and commer
cial borrowers are forced to pay ab
normal rates, so that each fall a tax,
in the shape of Increased interest
charges, is placed on the whole com
merce of the country.
‘‘The mere statement of these facts
shows* that our present system is se
riously defective. There is need of a
change. It must never be forgotten
that this question concerns business
men generally quite as much as bank
ers; esoecially is this true of stock
men, farmers, and business me in the
west; for at present at certain seasons
of the year the difference in interest
rates between the east and west is
from 6 to 10 per cent,, whereas in Can
ada the corresponding different is but
2 per cent.”
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
recognize the even greater need of a
safe and secure currency. There must
always be the most rigid examination
by the national authorities.
Should Be Elastic System.
: Provision should be made for an
: emergency currency. The emer
: gency issue should, of course, be
: made with effective guaranty, and
; upon conditions carefully prescribed
: by the government. Such emer
: gency issue must be based on ade
: quate securities approved by the
: government, and must be issued un
: der a heavy tax. This would permit
: currency being issued .when the de
; mand for it was urgent, while se
; curing its retirement as the demand
; fell off. It is worth investigating
: to determine whether officers and
: directors of national banks should
; ever be allowed to loan to them
: selves. Trust companies should
: be subject to the same supervision
; as banks; legislation to this effect
: should be enacted for the District
; of Columbia and the territories.
Yet we must also remember that ever
the wisest legislation on the subject
can only accomplish a certain amount
j No legislation can by any possibility
guarantee the business community
against the results of speculative folly
any more than it can guarantee ar
individual against the results of his ex
travagance. When an Individual mort
gages his house to buy an automobile
he invites disaster; and when wealthy
men, or men who pose as such, or art
unscrupulously or foolishly eager to be
come such, indulge in reckless specula
tion—especially if it is accomps tiled by
dishonesty—they jeopardize not only
their own future, but the 'uture of al
their Innocent fellow citizens, for they
expose the w’hole business community
I to panic and distress.
The Tariff.
; This country is definitely com
: mitted to the protective system and
; and any effort to uproot it could
: not but cause widespread Industrial
; disaster. In other words, the, prin
: clple of the present tarifT law :
: could not with wisdom be changed. :
i : But In a country of such phenom- ;
: enal 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 ex- :
i : cesslve or Improper benefits are :
: conferred thereby, that proper rev- :
: enue Is provided, and that our for- :
; elgn 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 dif- :
: ference in the labor cost here and :
: abroad, for the well being of the ;
: wage-worker must ever be a card- :
; lna! point of American policy. The :
: question should be aproached pure- :
: ly from a business standpoint; ;
; both the time and the manner of :
: the change being such as to arouse :
: the minimum of agitation and dls- ;
: turbance in the business world, and ;
; to give the least play for selfish :
: and factional motives. The sole :
: consideration should be to see that ;
: the sum total of changes repre- :
; sents the public good. This means :
: that the subject can not with wis-:
: dom be dealt with in the year pre- :
; ceding a presidential election, be- :
: cause as a matter of fact expert- :
: ence has conclusively shown that :
: at such a time it Is impossible to :
; get men to treat It from the stand- :
; point of the public good. In my :
; Judgment the wise time to deal :
; with the matter Is immediately af- ;
: ter such election. :
Income Tax and Inheritance Tax.
When our tax laws are revised the
question of an income tax and an In
heritance tax should receive the careful
attention of our legislators. In my
judgment both of these taxes should be
part of our system of federal taxa
tion. I speak diffidently about the in
come tax because one scheme for an
income tax was declared unconstitu
tional by the supreme court; while In
addition it Is a difficult tax to adminis
ter 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 desirable to have
taxed, for If so evaded it would, of
course, be worse than no tax at all;
as the least desirable of all taxes is the
tax which bears heavily upon the hon
est as compared with the dishonest
man. Nevertheless, a graduated in
come 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 constitutional. The inheritance
tax, however, is both a far better
method cf taxation, and far more Im
portant for the purpose of having the
fortunes of the county bear In propor
tion to their Increase In size a corre
sponding Increase and burden of tax
ation.
: The government has the absolute :
: right to decide as to the terms upon :
; which a man shall receive a be- :
: quest or devise from another, and :
; this point in the devolution of prop- :
: erty is especially appropriate for :
: the imposition of a tax. Latvs im- :
: posing such taxes have repeatedly ;
: been placed upon the national :
: statute books and as repeatedly de- :
: dared constitutional by the courts; ;
: and these law’s contained the pro- :
: gressive principle, that Is, after a :
: certain amount Is reached the be- :
: quest or gift, in life or death, is :
: increasingly burdened and the rate :
; of taxation is increased in propor- :
; tion to the remoteness of blood of :
; the man receiving the bequest. :
Behind the European Countries.
The principles are recognized already
in the leading civilized nations of the
w’orld. In Great Britain all the es
tates worth $5,000 or less are practically
exempt from death duties, while the
increase is such that when an estate
exceeds $5,000,000 in value and passes
to a distant kinsman or stranger in
blood the government receives all told
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 relative.
The German law is especially interest
ing to us because it makes the in
heritance tax an imperial measure
while allotting 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 im
perial 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
concurrently with the national govern
ment, making a combined maximum
rate, in some cases as high as 25 per
cent.. The tax should is possible
be made to bear more heavily upon
those residing without the country
than within it. A heavy progressive
tax upon a very large fortune is in no
way such a tax upon thrift or industry
as a like tax would be on a small for
tune. No advantage comes either to
the country as a whole or to the indi
viduals inheriting the money by per
mitting the transmission in their en
tirety of the enormous 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 pre
serve a measurable equality of oppor
tunity for the people of the generations
growing to manhood.
r—r_4 „( l
A few years ago there was loud com
plaint that the law could not be in
voked against wealthy offenders. There
is no such complaint now. The course
of the department of justice during
the last few years has been such as
to make it evident that no man stands
above the law, that no corporation is
so wealthy that it cannot be held to
account. But the laws them
selves need strengthening In more
than one Important point, they should
be made more definite, so that no hon
est man can be led unwittingly to
break them, and so that the real
wrongdoer can be readily punished.
: Moreover, there must be the pub- :
: lie opinion back of the laws or the :
: laws themselves will be of no :
I : avail. At present, while the av- :
: erage juryman undoubtedly wishes :
: to see trusts broken up, and is :
: quite ready to fine the corpora- :
: tion itself, he Is very reluctant to :
: find the facts proven beyond a lea- :
: sonable doubt when it conies to :
' : sending to jail a member of the :
: business community for indulging :
: in practices which are profoundly :
: unhealthy, but which, unfortunate- :
: ly, the business community has :
: grown to recognize as well night :
: normal. Both the present condl- :
: tlon 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 the prime of- :
: fender by Imprisonment rather :
: than to fine the corporation, with :
: the attendant damage to stock- :
: holders. •
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 mifeht be well to
begin by providing for a federal in
spector of Interstate railroads some
where along the lines of federal inspec
tion of steamboats, although not going
so far; perhaps at first all that It
would be necessary to have would be
some officers whose duty it would be
to Investigate all acidents on Interstate
railroads and report in detail the
causes thereof.
Employers’ Liability.
Congress should adopt legislation pro
viding limited but definite compensa
tion for accidents to all workmen with
in the scope of the federal power, in
cluding employes of navy yards and
arsenals. In other words, a model em
ployers’ liability act, far reaching and
thoroughgoing, should be enacted
which should apply to all positions,
public and private, over which the na
tional government has jurisdiction.
The law should be made such that
the payment for accidents by the em
ployer would be automatic instead of
being a matter for lawsuits. Workmen
should receive certain and definite com
pensation for all accidents in industry
Irrespective of negligence.
By the proposed law, employers
would gain a desirable certainty, of ob
ligation and get rid of litigation to
determine it, while the workman and
his family would be relieved from a
crushing load.
The constitutionality of the employ
ers' liability act passed by the preced
ing congress has been carried before
the courts. In the event that the
court should affirm the constitutional
ity of the act, I urge further legislation
along the lines advocated In my mes
sage to the preceding congress. Since
1895 practically every country of Eu
rope, together with Great Britain, New
Zealand, Australia, British Columbia,
and the Cape of Good Hope has enacted
legislation embodying in one form or
another the complete recognition of the
princlnle which places upon the em
ployer the entire trade risk in the
various lines of industry.
Eight-Hour Law.
The principle of the eight-hour day
should as rapidly and as far as prac
ticable be extended to the entire work
carried on by the government; and
the present law should be amended to
embrace contracts on those public
works which the present, wording of the
| act has been construed to exclude.
Investigation of Industrial Disputes.
Strikes and lockouts, with their at
tendant loss and suffering, continue to
Increase. For the five years ending
December 31, 1905, the number of strikes
was greater than those in any previous
ten years and was double the number
in the preceding five years. These fig
ures indicate the Increasing need of
providing some machinery to deal with
this class of disturbances in the inter
est alike of the employer, the employe,
and the general public. I renew my
previous recommendation that the con
gress favorably consider the matter of
creating the machinery for compulsory
investigation of such industrial contro
versies as are of sufficient magnitude
and of sufficient concern to the people
of the country as a whole to warrant
the federal government in taking ac
tion.
Employment of Women and Children.
A thorough and comprehensive meas
ure should be adopted at this session
of the congress relating to the employ
ment of women and children in the
District of Columbia and the terri -
tories. The investigation into the
condition of women and children
wage-earners recently authorized and
directed by the congress is now being
carried on in the various states, and i
recommend that the appropriation
made last year for the beginning of this
work be renewed, in order that we may
have the thorough and comprehensive
investigation which the subject de
mands. The national government has
as an ultimate resort for control ol
child labor the use of the interstate
commerce clause to prevent the prod
ucts of child labor from entering Into
interstate commerce. But before using
this it ought certainly to enact model
laws on the subject for the territories
under its own immediate control.
The Really Dangerous Criminals.
Vice In its cruder and more
archaic forms shocks everybody; but
there is very urgent need that public
opinion should be just as severe in con
demnation of the vice which hides itself
behind class or professional loyalty, or
which denies that It is vice if it can
escape conviction In the courts.
: Swindling in stocks, corrupting :
: legislatures, making fortunes by ;
: the inflation of securities, by wreck- :
: ing railroads, by destroying com- :
: petitors through rebates—these :
: forms of wrongdoing in the cap- ;
: italist, are for more infamous than ;
: any ordinary form of embezzlement ;
: or forgery; yet it is a matter of ex- ;
; treme difficulty to secure the pun- ;
: lshment of the man most guilty of :
; them, most responsible for them. ;
: The business man who condones ;
: such conduct stands on a level with .
; the labor man who deliberately sup- ;
; ports a corrupt demagogue and agi- :
: tator, whether head of a union or
; head of some municipality, because :
: he is said to have ' stood by the :
: union.” The members of the bust- :
: ness community, the educators, or :
: clergymen, who condone and en
: courage the first kind of wrongdo- :
: ing, are no more dangerous to the ;
: community, but are morally even :
; worse, than the labor men who are :
: guilty of the second type of wrong- :
; doing, because less Is to be par- ;
; doned those who have no such ex- ;
; cuse as is furnished either by ignor- ;
: ance or by dire need. :
Farmers and Wage Worker*.
The national government, through
the department of agriculture, should
do all it can by Joining with the state
governments and with independent as
sociations of farmers to encourage the
giowth in the open farming country
of such institutional and social move
ments as will meet the demand of the
best type of farmers, both for the im
provement of their farms and for the
betterment of the life itself. The
farmer must not lose his independence,
his initiative, his rugged self reliance,
yet he must learn to work in the
heartiest co-operation with his fel
lows, exactly as the business man has
learned to work; and he must prepare
to use to constantly better advantage
the knowledge that can be obtained
! * m agricultual colleges, while he
i K st insist upon a practical curriculum
in the schools in which his children
are taught.
The present diverse methods of In
spection and grading of grain through
out the country under different laws
and boards, result in confusion and
lack of uniformity, destroying that con
fidence which is necessary for healthful
trade. I therefore suggest to the con
gress the advisability of a national
system of inspection and grading of
grain entering into interstate and for
eign commerce as a remedy for the
present evils.
Inland Waterways.
The conservation of our natural re
sources and their proper use constitute
ihe fundamental problem which under
lies almost every other problem of out
national life. We must maintain for
our civilization the adequate material