he Pacific subsidized roads to the
Government. His suggestion has the unanimous indorsement of the persons
selected by the Government to act as directors of these roads and
protect the interests of the United States in the board of direction.
In considering the plan proposed the sole matters which should be taken
into account, in my opinion, are the situation of the Government as a
creditor and the surest way to secure the payment of the principal and
interest of its debt.

By a recent decision of the Supreme Court of the United States it has
been adjudged that the laws of the several States are inoperative to
regulate rates of transportation upon railroads if such regulation
interferes with the rate of carriage from one State into another. This
important field of control and regulation having been thus left entirely
unoccupied, the expediency of Federal action upon the subject is worthy
of consideration.

The relations of labor to capital and of laboring men to their employers
are of the utmost concern to every patriotic citizen. When these are
strained and distorted, unjustifiable claims are apt to be insisted upon
by both interests, and in the controversy which results the welfare of
all and the prosperity of the country are jeopardized. Any intervention
of the General Government, within the limits of its constitutional
authority, to avert such a condition should be willingly accorded.

In a special message[11] transmitted to the Congress at its last session
I suggested the enlargement of our present Labor Bureau and adding to
its present functions the power of arbitration in cases where
differences arise between employer and employed. When these differences
reach such a stage as to result in the interruption of commerce between
the States, the application of this remedy by the General Government
might be regarded as entirely within its constitutional powers. And I
think we might reasonably hope that such arbitrators, if carefully
selected and if entitled to the confidence of the parties to be
affected, would be voluntarily called to the settlement of controversies
of less extent and not necessarily within the domain of Federal
regulation.

I am of the opinion that this suggestion is worthy the attention of the
Congress.

But after all has been done by the passage of laws, either Federal or
State, to relieve a situation full of solicitude, much more remains to
be accomplished by the reinstatement and cultivatio