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“A Kalamazoo Direct to You" Hon. James R. Garfield, Commissioner of Commerce and Labor, Speaks at Kalamazoo, and Quotes

the Famous Catch Phrase of the Kalamazoo Stove Company C T ON JAMES R. GARFIELD, "In coming to Kalamazoo today one of the U. S. Commissioner of Commmissioner of Com first things that attracted my attention was a

sign which you all know so well-"Kalamazoo, merce and Labor, who is soon

Direct to You." And I found it so. (Laughto fill the Cabinet office of ter and applause.) I had the pleasure of Secretary of the Interior, was the prin meeting the man who is I think responsible cipal speaker at the banquet of the Lin

for that saying. I learned with sorrow, how

ever, that he could not be a full-fledged memcoln Club of Kalamazoo, Michigan, on

ber of this club. But I am confident from the evening of February 9th.

what I hear of him and from the way you In the opening remarks of his address, have honored him and from one or two rehe referred to the famous advertising

marks that he made to me, that really he is

not so very far away after all.” (Applause catch line of the Kalamazoo Stove Com

and laughter.) pany, "A Kalamazoo Direct to You,"

In his speech Mr. Garfield said some and by doing so demonstrated the great things that will interest advertisers. We value of a short catch phrase that sticks quote: in the minds of the public and voices itself apart from the advertisements of

Federal Regulation Justified which it is always a part.

We hear many people today objecting to

this regulation by the federal government. The value of those five words as an

They call it interference. They call it an advertising asset cannot be estimated. invasion of the rights of privacy. They call Never since the coining of the advertise it paternalistic; but does any one of these peoing phrase, “You push the button and we

ple think for a moment so as to be able to tell

how it is an infringement upon individual do the rest," has there been a catch line

right? Wherein is any right of which you framed or used that has attracted such and I have taken away when the federal universal attention, and been so produc government steps in and says to us, “When tive of results as the one quoted by Com

you become incorporated, when you cross the

state line and engage in commerce, when you missioner Garfield in his Kalamazoo ad

go out in foreign countries and engage in dress.

commerce, then we will regulate you for the The great value of this phrase consists benefit of the public at large.” Wherein is in its relation to the supplying of a con

there an invasion of private rights ? Congress

protects us through its laws when we shall stantly recurring need of every house

engage in commerce and for that protection wife. "A Kalamazoo Direct to You,"

had a right to demand of us that we obey the has been so extensively and wisely used laws which have imposed upon our fellowin connection with the advertising of the

men; that we do not uphold monopolistic con

trol of the trade in which we are engaged; Kalamazoo Stove Company that when

that we do not pursue unfair methods of comever and wherever the thought of buy

petition, dishonest methods of competition; that ing a stove arises this five-word euphony we do not uphold discriminations on the highis present to jog the memory and suggest ways as against our competitors in trade. In

other words, congress has a right to demand that a Kalamazoo stove or range can

of us that we be honest and fair in our trade be had direct from the manufacturer.

relations with one another and with our comThe fact that a soon-to-be cabinet offi- petitors. (Applause.) cer has been impressed by it, to the ex Then, again, why is the corporation more and tent of quoting it in the opening of his more perfectly subject to control than is the address, is another tribute to the power

individual? The reason is simple. of good advertising.

The corporation has derived its power solely

from the state. It is a creature of the state. Regarding this catch phrase Mr. Gar

It is not an individual, a citizen, as you and I field said:

are. It is given certain great powers and

should be held to strict account for the exercise of those powers.

When these corporations engage in trade as common carriers they are given the great right of eminent domain. They have the right of taking my property and your property (paying you, it is true, and you cannot prevent it), and using that property for their own use.

Now, why should not such corporations be regulated in every particular in conducting their business? Why should they not be obliged to open their books and lay bare their methods of doing business to proper public inspection, so that the power that gave them those great rights might know how those rights are being exercised? Is there any invasion of privacy about that? (Applause.)

Who is harmed by that kind of an investigation of corporate affairs? No one who is doing an honest business. (Applause.) Who gains if that kind of an inspection is not provided for? The man who gains is the man who is doing an unfair and a dishonest busi. ness; a man who is seeking to secrete from the state a knowledge of those facts which the state is entitled to have.

The director who is misusing funds of a corporation is the man who gains most, if there is no governmental supervision and regulation of th. business of the corporation. The officer who has been using the funds of the corporation for bribery and corruption is the one who does not want investigation and inspection. (Applause.)

The stockholder and the bondholder who is avoiding taxation is the man who does not want it known how much he owns and what he has in that corporation and what its profits are.

Now, I take it that those are not the people that the public at large seek to benefit in the question of the control of corporations. I take it that the public at large through its representatives either in the common council of the city, in the state legislature or in the halls of the national congress are looking after the interests of just such men as are here at tais banquet tonight.

as for a needle in a haystack to find out whether the complaints were well founded or not. They did not have the right of general inspection of the books of the railroad companies.

Under the new act and of the section which has been but little discussed, but which is the most important section of the whole act, by that section I say, the Interstate Commerce Commission through its duly accredited representatives, goes to the books of a railroad corporation and not one scratch of the pen can be kept from that representative. (Applause.)

It is not looking for the shipments of "A," “B," "C," and "D," but it gives the inspector the right to examine every entry of the rail: road corporation; find out how it is doing business; who its stockholders are; what its bonded indebtedness is; what other railroads or transportation companies or business along its lines are owned through stock ownership or otherwise. In fact, all the workings of the business of the corporation are laid open to the inspection of the representative of the government.

By that means we are letting in the light that means real publicity. That means giving to the government the facts that we must have if we are to have intelligent legislation and an intelligent enforcement of existing legislation.

Anti-Trust Law Now, we have taken another step towards the question of the regulation of business, and that was the Anti-Trust law. That was a law that attempted to prevent monopoly and combination in restraint of trade, and conspiracy. That law prohibits the doing of certain things which were considered contrary to good morals. That law provides a penalty to be imposed when those conditions were found to exist.

Now, I believe that by reason of the facts that we are getting from the investigation of corporations, we have found that that law must be changed. We find that by the interpretation of the supreme court, all combinations whether reasonable or unreasonable are held to be in violation of that law.

Now, as we learn more about corporations, as we get the facts through publicity, we find that there are certain combinations that may be wise and beneficial for the public at large. There are consolidations that result in public good. There are agreements, traffic agreements and otherwise, that tend to steady rates, set prices and provide against unfair competition, against ruinous competition and make possible a better condition in trade.

In these things where publicity is being had, we will afford a basis of intelligent remedying all the defects of the statute. It will make it possible to provide that under governmental supervision certain combinations or agree.

Examples of Regulation Now, let us see how this method of regula tion can be successfully carried out. We have already attempted it and made a long start in the handling of the railroads. We have provided there by the recent act, which my brother has not yet been able to fully digestand I think I can say that he is not alone in that difficulty-(laughter) a means for finding out how the railroads of this country are conducting their business.

Under the old act there was no such possibility. Under the old act when complaints were made the commission had to hunt around

ments made and entered into; and when these agreements are known to the government authorities, when they are recognized as being wise for the public at large, when in every detail they are laid open, then it will be seen that there may be such combinations and such agreements among men engaged in similar business.

That will be the next step in our next legis. lative history, to provide a more ample method of taking care of industry as we find it today. You all know and I know that to stop combina tion and consolidations is absolutely impossible. You can no more stop them than you can dam the Mississippi river.

And the simile between the Mississippi river and trade I think is a very apt one. There all the streams of the great Mississippi valley are pouring in their flood of water into the river. The high tide comes, the high floods come and the low water comes, but the one channel of the Mississippi river must take it all to the gulf.

kind of combination, whether it be of capital or labor, will work for the public good. (Applause.)

Now, for a moment let us think of the labor side of this question. We hear much said against the action of consolidation and corporations. We must not forget that this question has two big sides.

It is true that capital does wrong, often, under the corporate form and the combination form; but it is likewise true that labor does wrong under combined form of trade unions at times.

We must remember that trade union is a good thing, a wise thing, a necessary thing so long as labor uses that particular union for the advancement of better men and for elevating the average of workmen. For giving him more of the world's goods, but at the same time requiring him to render better service and more service when he gets more goods. It does not mean the labor union should be allowed to overrun capital any more than capital should be allowed to overrun the labor union. (Applause.)

Now, as to this federal regulation, we are simply seeking to get the facts, of opening the door and letting in the light. The inoment we have publicity of that kind, then there is no trouble in driving out the evils that come into industrial progress.

It is exactly the same as cleaning out the dirty section of a city, the foul section of the tenement houses. You let in the light of heaven and you drive out disease. So with the industrial problem. You let in the light of publicity and you drive out the disease that is at the vitals of our industrial life. (Applause.)

A Striking Comparison If you attempted to dam that river, then comes the flood tide and you would simply bring on disaster; but if you regulated the streams, if you cut its banks, if you deepened its channels, if you studied the subject, noted the currents and the conditions, then you might so regulate that great stream that it carries off the flood tide without injury to the surrounding country.

And so it is with commerce today. In con solidation we need combination both of capital and labor, but we must not allow that combination to go on unregulated; we must guide it; we must know the facts, then we may regulate it intelligently and wisely so that that

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SHEEP RAISING IN CALIFORNIA. ILLUSTRATION FROM "FARMING," DOUBLEDAY, PAGE & CO.

Jacob Steinheuser Celebrates His Conversion to Advertising

By Ira Mark

(

U TEN morgen, Meester mine books, und how much you suppose

Adfertising Agent! Sit mine business haf gain since I began down und schmoke dis adfertising by you, sax months ago? fine Havanna cigar yet.

"Fifdy per cent? "You vas surprise of dot cigar? I "No, sir! You haf to guess sax dimes neffer gif you von before, no? Vell, I more. haf oxperience some change in mine “Sax dimes fifdy per cent ! heart, und mine pocketbook also, und I “Dree hunner per cent ! can afford to be liberality.

"Vot you dink of dot?

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