s involved the use of the powers of government. Although
a few clung to the ancient doctrine that the government should not
interfere with private business at all, the American people at large
rejected that theory as vigorously as they rejected the doctrines of an
extreme socialism which exalts the state above the individual. Leaders
representing every shade of opinion proclaimed the government an
instrument of common welfare to be used in the public interest. "We must
abandon definitely," said Roosevelt, "the _laissez-faire_ theory of
political economy and fearlessly champion a system of increased
governmental control, paying no attention to the cries of worthy people
who denounce this as socialistic." This view was shared by Mr. Taft, who
observed: "Undoubtedly the government can wisely do much more ... to
relieve the oppressed, to create greater equality of opportunity, to
make reasonable terms for labor in employment, and to furnish vocational
education." He was quick to add his caution that "there is a line beyond
which the government cannot go with any good practical results in
seeking to make men and society better."

=The Regulation of Railways.=--The first attempts to use the government
in a large way to control private enterprise in the public interest were
made by the Northwestern states in the decade between 1870 and 1880.
Charges were advanced by the farmers, particularly those organized into
Granges, that the railways extorted the highest possible rates for
freight and passengers, that favoritism was shown to large shippers,
that fraudulent stocks and bonds were sold to the innocent public. It
was claimed that railways were not like other enterprises, but were
"quasi-public" concerns, like the roads and ferries, and thus subject to
government control. Accordingly laws were enacted bringing the railroads
under state supervision. In some cases the state legislature fixed the
maximum rates to be charged by common carriers, and in other cases
commissions were created with the power to establish the rates after an
investigation. This legislation was at first denounced in the East as
nothing less than the "confiscation" of the railways in the interest of
the farmers. Attempts to have the Supreme Court of the United States
declare it unconstitutional were made without avail; still a principle
was finally laid down to the effect that in fixing rates state
legislatures and commissions must permit railway companies t