Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
In his first message to Congress, on December 3, 1901, Mr. Roosevelt
gave considerable attention to trusts and collateral economic problems.
He refused to concede the oft-repeated claim that great fortunes were
the product of special legal privileges. "The creation of these great
corporate fortunes," he said, "has not been due to the tariff nor to any
other governmental action, but to natural causes in the business world,
operating in other countries as they operate in our own. The process has
aroused much antagonism, a great part of which is wholly without
warrant. It is not true that as the rich have grown richer, the poor
have grown poorer. On the contrary, never before has the average man,
the wage worker, the farmer, the small trader, been so well off as in
this country at the present time. There have been abuses connected with
the accumulation of wealth; yet it remains true that a fortune
accumulated in legitimate business can be accumulated by the person
specially benefitted only on condition of conferring immense incidental
benefits upon others."
While thus contending that large fortunes in the main were the product
of "natural economic forces," Mr. Roosevelt admitted that some grave
evils had arisen in connection with combinations and trusts, and
foreshadowed in his proposed remedial legislation the policy of
regulation and new nationalism. "When the Constitution was adopted, at
the end of the eighteenth century, no human wisdom could foretell the
sweeping changes, alike in industrial and political conditions, which
were to take place by the beginning of the twentieth century. At that
time it was accepted as a matter of course that the several states were
the proper authorities to regulate ... the comparatively insignificant
and strictly localized corporate bodies of the day. The conditions are
now wholly different, and a wholly different action is called for." The
remedy he proposed was publicity for corporate affairs, the regulation,
not the prohibition, of great combinations, the elimination of specific
abuses such as overcapitalization, and government supervision. If the
powers of Congress, under the Constitution, were inadequate, then a
constitutional amendment should be submitted conferring the proper
power. The Interstate Commerce Act should likewise be amended. "The
railway is a public servant. Its rates should be just to and open to all
shippers alike. The Government should see to it that within its
jurisdiction this is so." Conservation of natural resources, irrigation
plans, the creation of a department of Commerce and Labor, army and navy
reform, and the construction of the Panama Canal were also recommended
at the same time (1901).
Public-domain text, read in full here on John Shaqi.
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