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T —— “the permanent prosperity of the coun- _the average Ameriean worker, the AN FRIEND TO FRIEND. The personal recommendations of peo- | ple who have been cured of coughs and | eolds by Chamberlain's Cough Remedy have done more than all else to make ita ataple article of trade an'l commerce oves « large part of the civilized world. Barker’s Drug Store THE BEMIDJI DAILY PIONEER PUBLISHED ¥VERY AFTERNOON, OFFICIAL PAPER---CITY OF BEMIDII BEMIDJI PIONEER PUBLISHING CO. GLYDE J. PRYOR | A, 0. RUTLEDGE Business Manager Managing Editor Satered in the postoffice at Bemidjt. Mino., as second cluss matter. SUBSCRIPTION---$5.00 PER ANNUM PRESIDENT'S NESSAGE! Republic Fundamentally, Sound, Says Mr. Roosevelt. BUT SORE SPOTS EXIS Dishonesty Must Be Eliminated Though Innocent Suffer. ADYOCATES NEW LAWS. Currency Legislation, Regulation o Corporations, Inheritance and Ine come Taxes Ameng Presi- dential Recommen= dations. To the Senate and House of Repre- sentatives: No nation has greater resources than ours, and I think it can be truthfully sald that the citizens of no natlon pos- sess greater energy and industrial abil- ity. In no nation are the fundamental business conditions sounder than in ours at this very moment, and it is foolish, when such is the case, for peo- ple to hoard money instead of keeping it in sound banks, for it Is such hoard- ing that Is the immediate occasion of money stringency. Moreover, as a rule, the business of our people is con- ducted with honesty and probity, and this applies alike to farms and facto- ries, to railroads and banks, to all our }egltinmte commercial enterprises. In any large body of men, however, there are certain to be some who are dishonest, and If the condltions are such that these men prosper or commit their misdeeds with fmpunity their ex- ample is a very evil thing for the com- munity. Where these men are business men of great sagacity and of tempera- ment 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 invest- ments or embarking in kinds of busi- ness that are 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 occurs, and naturally when It does occur 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 gullty It is both wise and proper to endeavor, so far as possible, to mini- mize 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 ultimate causes of the suffering and as a means to this end where possible to punish those responsible for them. There may be honest differences of opinlon as to many governmental policies, but sure- 1y there can be no such differences as to the need of unflinching perseverance in the war against successful dishon- esty. In my message to the congress on Dec. 5, 1903, I sald: “If the folly of man mars the general well being, then those who are inno- cent of the folly will have to pay part of the penalty Incurred by those who are gullty of the folly. A panic brought on by the speculative folly of part of the business communlty would hurt the whole business community, but such stoppage of welfare, though it might be severe, would not be lasting. In the long run the one vital factor in try s the high individual character of average American cltizen, no matter whether his work be mental or man- ual, whether he be farmer or wage- worker, business man or professional man, “Tn our Industrial and soclal system the iuterests of all men are 80 closely Intertwined that in the tmmense ma- jority of cases a straight deallng man who by his efficiency, by his ingenuity and Industry benefits himself must also benefit others. Normally the man of great productive capacity who be- comes rich by guiding the labor of many other men does so by enabling them to produce more than they could produce without his guildance, and both e and they share in the benefit which comes also to the public at large. The superficial fact that the sharing may be unequal must never blind us to the underlying fact that there is this shar- Ing and that the benefit comes in some degree to each man concerned. Nor- mally the wageworker, the man of small means and the average consum- er as well as the average producer are {all alike helped by making conditions | such that the man of exceptional busi- ness ability receives an exceptional re- ward for his abllity. Sowmething can be done by legislation to help the gen- eral prosperity, but no such help of a permanently beneficial character can be given to the less able and less for tunate save as the results of a policy which shall inure to the advantage ot all industrious and efficient people whe act decently, and this is only another way of saying that any benefit which comes to the less able and less fortu- nate must of necessity come even more to the more able and more fortunate. If therefore the less fortunate man Is moved by envy of his more fortu- nate brother to strike at the condl- tions under which they have both, though unequally, prospered, the result will assuredly be that, while damage may come to the one struck at, it will visit with an even heavier load the one who strikes the blow. Taken as a whole, we must all go up or go down together. “Yet, while not merely admitting but insisting upon this, it is also true that where there Is no governmental re- straint or supervision some of the ex- ceptional men use thelr energles not In ways that are for the common good, but in ways which tell against this i common good. The fortunes amassed through corporate organization are now so large and vest stch vower in those that wield them as to make it a matter of necessity to give to the sovereign— that is, to the government, which rep- resents the people as a whole—some ef- fective power of supervision over thelr corporate use. In order to Insure a healthy social and industrial life every big corporation should be held respon- sible by and be accountable ¢o some sovereign strong enough to control its conduct. I am in no sense hostile to corporations. This is an age of com- bination, and any effort to prevent all combination will be not only useless, but In the end vicious, because of the contempt for law which the failure to enforce law Inevitably produces. We should, moreover, recognize In cordial and ample fashion the immense good effected by corporate agencles in a country such as ours and the wealth of intellect, energy and fidelity devoted to their service, and therefore normally to the service of the public, by their of- ficers and directors. The corporation has come to stay, just as the trades union has come to stay. ' Each can do and has dore great good. Each should be favored so long as it does good. But each should be sharply checked where it acts against law and justice. * * * “The makers of our national constitution provided especlally that the regulation of interstate commerce should come within the sphere of the general government. The arguments in favor of thelr taking this stand were even then overwhelming. But they are far stronger today, in view of the enor- mous development of great business agencies, usually corporate in form. Experience has shown conclusively that it is useless to try to get any ade- quate regulation and supervision of these great corporations by state ac- tion. Such regulation and supervision can only be effectlvely exercised by a sovereign whose jurisdiction s coex- tensive with the fleld of work of the corporations—that 1s, by the national government. I belleve that this regu- lation and supervision can be obtained by the enactment of law by the con- gress. * * ¢ Our stendy aim should be by legislation, cautiously and care- fully undertaken, but resolutely per- severed in, to assert the soverelgnty of the national government by affirmative actlon. “This is only in form an innovation. In substance it is merely a restora- tlon, for from the earliest time such regulation of industrial activities has been recognized in the action of the lawmaking bodies, and all that I pro- pose 1s to meet the changed conditions in such manner as will prevent the commonwenlth abdicating the power it has always po ged, not only in this country, but also in England, be- fore and since this country became a separate nation. “It has been a misfortune that the national laws on this subject have hitherto been of a negative or prohib- itive rather than an affirmative kind and still more that they have in part sought to prohibit what could not be effectively prohibited and have in part in thelr prohibitions confounded what should be allowed and what should not be allowed. It is generally useless to try to prohibit all restraint on com- petition, whether thils restraint be rea- sonable or unreasonable, and where it is not useless it 1s generally hurtful. * * ¢ The successful prosecution of one device to evade the law immedi- ately develops another device to accom- plish the same purpose. What is need- ed is not sweeping prohibition of every arrangement, good or bad, which may tend to restrict competition, but such adequate supervision and regulation as will prevent any restriction of com- petition from being to the detriment of the public, as well as such supervision and regulation as will prevent other abuses in no way connected with re- striction of competition.” 1 have called your attention in these quotations to what I have already said because I am satisfied that it 18 the duty of the national government to em- body in action the principles thus ex- pressed. INTERSTATE COMMERCE. Founders Provided For Fullest Govern- ment Control. No small part of the trouble that we bave comes from carrying to au ex- treme the national virtue of self rell- ance, of independence in initlative and actlon. 1t {s wise to conserve this vir- tue and to provide for its fullest exer- cise compatible with seclng that lb- erty does not become a liberty to wrong others, Unfortunately this Is the kind of liberty that the lack of all effective regulation Inevitably breeds. The founders of e_constitutlon nen. Vldeu-tnn‘t mer tlmnctum gov‘emmem should have complete and sole control of Interstate commerce. There was then practically no interstate busi- mess save such as was conducted by watet, and this the national govern- ment at once procceded to regulate in thoroughgoing and effective fashion. Conditions have now so- wholly chang: ed that the interstate commerce by water is insignificant compared with the amount that goes by land, and al- most all big business concerns are now engaged In Interstate commerce. As a result, it can be but partially and im- perfectly controlled or regulated by the actlon of any one of the several states, such action inevitably tending to be elther too drastic or else too lax and In efther case Ineffective for pur: poses of justice. Only the national government can In thoroughgolng fash- fon exercise the needed control. This does not mean that there should Le any extension of federal authority, for such authority already exists under the constitution in amplest and most far reaching form, but it does mean that there should be an extension of federal activity. This fs not advocat- ing centralization. It Is merely looking facts In the face and realizing that centralization in business has already come and cannot be avolded or undone and that the public at large can only protect ltself from certain evil effects of this business centralization by pro- viding better methods for the exercise of control through the authority al ready centralized in the national gov- ernment by the constitution itself. There must be no halt in the healthy constructlve course of action which this nation has elected to pursue and has steadily pursued during the last six years, as shown both in the legis- lation of the congress and the admin- istration of the law by the depart- ment 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 incorporation act or a law licensing railway compa- nles to engage In interstate commerce upon certain conditions. The law should be so framed as to give to the Interstate commerce commission pow- er to pass upon the future issue of se- curities, while ample means should be provided to enable the commission, whenever in its judgment it is neces- sary, to make a physical valuation of any railroad. As I stated in my mes- sage to the congress a year ago, rail- roads should be given power to enter into agreements subject to these agree- ments being made public in minute de- tall and to the consent of the inter- state commerce commission being first obtained. Untll the national govern- ment assumes proper confrol of inter- state commerce In the authority - it already possesses it will be Impossible either to give to or to get from the railroads full justice. The rallroads and all other great corpora- tions will do well to recognize that this control must come. The only question is as to what governmental body can most wisely exercise it. The courts will determine the limits within which the federal authority can exercise it, and there will still remain ample work within each state for the railway com- mission of that state, and the national interstate commerce commission will work - in harmony with the several state commissions, each within its own province, to achieve the desired end. THE SHERMAN LAV. Should Be Amended to Permit Proper Combinations In Business. Moreover, In my judgment, there should be additional legislation looking to the proper control of the great busi- ness concerns engaged In Interstate business, this control to be exercised for their own benefit and prosperity no less than for the protection of invest- ors and of the general public. As I have repeatedly sald in messages to the congress and elsewhere, experience has definitely shown not merely the unwisdom, but the futility, of endeav- oring to puf a stop to all business com- binations. Modern . industrial condl- tions are such that combination is not only necessary, but Inevitable. 1t Is 8o in the world of business just as it is 80 In the world of labor, and it Is as idle to desire to put an end to all cor- porations, to all big combinations of "capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each 1if properly managed Is a source of good and not evil. Whenever in either there is evil it should be prompt- ly held to account, but it should re- ceive hearty encouragement so long as it Is properly managed. It Is profound- ly immoral to put or keep on the stat- ute books a law, nominally in the in- terest of public morality, that really puts a premium upon public fmmoral- ity by undertaking to forbid honest men from doing what must be done under modern. business conditions, so that the law lItself provides that its own infraction must be the condition precedent upon business success. To alm at the accomplishment of too much usually means the accomplish- ment of too little and often the doing of positive damage. In my message to the congress a year ago, in speaking of the antitryst laws, I said: “The actual working of our laws has shown that the effort to prohibit all sombinatiofr, good or bad, is noxious where 1t is not Ineffective. Combina- tlon of capfital, like combination of la- bor, 18 a necessary element in our pres- | ent industrial system, It 18 not pos- sible completely to prevent it, and if it were possible such complete preven- tion would do damage to the body politic. What we need fs not vainly to try to prevent all combination, but to secure such rigorous and adequate control and supervision of the com- oinations as to prevent thelr {njuring he nnblic or existing In such forms as se of the | fneyitably to threaten injury. * * * It Is unfortunate that our present laws should forbld all combinations instead of sharply discriminating between those combinations which do good and those comblnations which do evil, * ** Ofterr rallroads would like to combine for the purpose of preventing a. big shipper from maintaining improper ad- vauntages at the expense of small ship- pers and of the general public. Such a comblnation, instead of belng forbid- den by law, should be favored, * * * It 18 a ‘public evil to have on the statute books a law Incapable of full enforcement, because both judges and Jurles realize that its full enforcement would destroy the business of the country, for the result is to make de- cent men violators of the law against their will and to put a premium on the ‘behavior of the willful wrongdoers. Such a result in turn tends to throw the decent man and the willful wrong- doer into close association and in the end to drag down the former to the latter’s level, for the man who be- comes a lawbreaker In one way un- happily tends to lose all respect for law and to be willing to break it In many ways. No more scathing con- demnation could be visited upon a law than Is contained in the words of the interstate commerce commission when in commenting upon the fact that the numerous joint trafiic associations do technically violate the law they say: ‘The decislon of the United States su- preme court in the transmissouri case and the Joint Traflic assoclation ‘case has produced no practical effect upon the railway operations of the country. Such associations. In fact, exist now as they did before these decisions and with the same general effect. In Justice to all parties we ought prob- ably to add that it Is difficult to see how our interstate rallways could be operated with due regard to the inter- est of the shipper and the rallway without concerted action of the kind afforded through these associations.” “This means that the law as con- strued by the supreme court Is such that the business of the country can- not be conducted without breaking it.” As I have elsewhere said: Not a New Proposition. . “All this is substantially what I have said over and over again. Surely it ouglt not to be necessary to say that it in no shape or way represents any hostilitz to corporations as such. On the contrary, it-means a frank recogni- tion of the fact that combinations of capital, like combinations of labor, are a natural result of modern conditions and of our national development. As far as in my ability lies, my endeavor Is and will be to prevent abuse of power by either and to favor both so long as they do well. The aim of the national government is quite as much to favor and protect honest corpora- tions, honest business nren of wealth, as to bring to justice those individuals and corporations representing dishon- est methods. Most certainly there will be no relaxation by the government authorities in the effort to get at any great railroad wrecker—any man who by clever swindling devices robs in- vestors, oppresses wageworkers and does Injustice to the general public. But any such mov€ as this is in the interest of honest rallway operators. of honest corporations and of those who when they invest their small sav- Ings in stocks and bonds wish to be assured that these will represent money honestly expended for legitimate business purposes. To confer upon the national government the power for which I asked would be a check upon overcapitalization. But it alone would mean an increase in the value, an in- crease in the safety, of the stocks and bonds of law abiding, honestly man- aged railroads and would render it far easler to market their securities. I believe in proper publicity. There has been complaint of some of the investi- gations recently carried on, but those who complain should put the blame svhere it belongs—upon the misdeeds which are done in darkness and not upon the investigations which brought them to light. The administration is responsible for turning on-the light, but it is not responsible for what the light showed. T ask for full power to be given the federal government, be- cause no single state can by legisla- tlon effectually cope with these pow- erful corporations engaged in inter- state commerce and, while doing them full justice, exact from them in return full justice to others. The conditions of raflroad activity, the conditions of our immense interstate ‘commerce, are such as to make the central govern- ment alone competent to exercise full supervision and control. Grave Results of Abuses. “The grave abuses in individual cases of railrond management in the past represent wrongs not merely to the general public, but, above all, wrong to fair dealing and honest cor- porations and men of wealth, because they excite a popular anger and dis- trust which from the very nature of the case tend to include in the sweep of its resentment good and bad alike. From the standpoint of the public I cannot too earnestly say that as soon as the natural and proper resentment aroused by these abuses becomes in- discriminate and unthinking it also be- comes not merely unwise and unfalr, but calculated to Gefeat the very ends which those feeling it -have in view. There has been plenty of dishonest work by corporations In the past. There will not be the slightest let-up in the effort to hunt down and punish ey- ery dishonest man. But the bulk of our business is honestly done. In the natural indignation the people feel over the dishonesty it is all essential that they should not lose their heads and get drawn into an ‘indiscriminate raid upon al’ eorporations, all people of wealth, whether they do well or fll. Out of any such wild movement good will not come, cannot come and never has come. On the contrary, the surest way to invite reaction is to follow the Jead of either demagogue or visionary In a sweeping assault upon property values and wupon public confidence, which' would work incalculable dam- age in the business world and would produce such distrust of the agitators that in the revulsion the distrust would extend to honest men who in sincere and sane fashion are trying to remedy the evils.” . AR The antitrust law should not be re: pealed, but it should be ma more -efficlent and mo y:-th of combination which does’ hivm to the general publie, such amendment to be accompanied by or to be an Incldent of a grant of supervvisory power to the government over - these big concerns engaged In interstate business. This should be accompanied by provision for the compulsory publication of ac- counts and fhe subjectlon of books and papers to the Inspection of the govern- ment oflicials. A beginning has “al- ready been made for such supervision by the establishment of the burcau of corporations. NONOPOLY DENOUNCED. No Combination Should Be Permitted to Corner Necessities of Life. The antitrust law should not prohibit comhinations that do ro Injustice to the public, still less those the existence of which Is, on the whole, of benefit to the public. But even If thls feature of the law were abolished there would remain as an equally objectionable fea- ture the difficulty and delay now inci- dent to its enforcement. The govern- ment must now submit to irksome and repeated delay before obtalning a final decision of the courts upon proceedings instituted, and even a favorable decree may mean an empty victory. More- over, to attempt to control these cor- porations by lawsuits means to impose upon both the department of justice and the courts an impossible burden. It 1s not feasible to carry on more than a Umited number of such suitZ. Such a law to be really effective must of course be administered by an executive body and not merely by means of law- sults. The design should be to pre- vent the abuses incident to the creation of unhealthy and improper combina- tlons Iustead of waiting until they are in existence and then attempting to de- stroy them by civil or eriminal pro- ceedings. A combination should not be toler- ated if it abuse the power acquired by ‘combination to the public 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 operations create a monopoly or gener- al control of the production, sale or distribution of any one or more of the prime necessities of life or articles of general use and necessity. Such com- binationsareagainstpublicpolicy., 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 in- terstate commerce against them for its protection. The law should make its prohibitions and permissions as clear and definite as possible, leaving the least possible room for arbitrary action or allegation of such action on the part of the executive or of divergent inter- pretations by the courts. Among the points to be aimed at should be the prohibition of unhealtk7 competition, such as by rendering service at an ac- tual loss for the purpcse of crushing out competition, the prevention of in- flation of capital and the prohibition of a corporation’s making exclusive trade with itself a condition of having any trade with itself. Reasonable agreements between or combinations of corporations should be permitted, provided they are first submitted to and approved by some appropriate goy- ernment body. The congress has the power to char- ter corporations to engage in interstate and foreign commerce, and a general law can be enacted under the pro- visions of which existing corporations could take out federal charters and new federal corporations could be cre- ated. As essential provision of such a law should be a method of predeter- mining by some federal board or com- mission whether the applicant for a federal charter was an association or combination within the restrictions of the federal law. Provision should also be made for complete publicity in all matters affecting the public and com- plete protection- to the investing public and the shareholders in the matter of issuing corporate securities. If an in- corporation law is not deemed advisa- Dle, a license act for big interstate cor- porations might be enacted or a com- bination of the two might be tried. The supervision established might be analogous to that now exercised over national banks. At least the antitrust act should be 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. The real owners of a corporation should be compelled to do business in their own name. "The right to hold stock in other corporations should here- after be denied to interstate corpora- tions unless on approval by the proper. government officials, and a prerequisite to such approval should be the lasting with the government of all owners and stockholders, both by the corporation owning such stock and by the corpora- tlon in which such stock is owned. To confer upon the national govern- ment, in connection with the amend- ment I advocate In the antitrust law, power of supervision over big business concerns engaged In interstate com- merce would benefit them as it has benefited. the natioual banks. In the recent business crisis it is noteworthy that the institutions which failed were institutions which jwere not under the supervision and control of the national government. Those which were under national control stood the test, National_control of the kind above advocated would be to the benefit of every well managed raflway. From the standpoint of the public there I8 need 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 is need for the inyestment 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 thelr employees. ‘Therefore, while there must be just and reason- able regulation of rates, we should be the first to protest agalnst any arbitra- ry and unthinking movement to cut them down without the fullest and most careful consideration of all inter- ests concerned and of the actual needs of the situation. Only a special hody of men acting for the national govern- ment under authority conferred upon the congress Is. compe extenslon of federal aetlvity will do well to study the history aot only of the national banking act, but of the pure food law, and notably the meat nspectlon law recently enacted, The pure food law was opposed so violent: ly that-its passage was delayed for a decade, yet it has worked unmixed and Immediate good. The ment in- spection law was even more viglently assafled, and the same men who now denounce the attitude of the national government in seeking to oversee and control the workings of Interstate com- mon carriers and business concerns then asserted that we were “discredit- ing and ruining a great American In- dustry.,” Two years have not elapsed, and already it has become evident that the great benefit the law confers upon the public is accompanied by an equal benefit to the reputable packing estab- Ushments. The latter are better oft under the law than they were without It. The benefit to Interstate common carrfers and business concerns from the legislation I advocate would be equally marked, Incidentally in the- passage of the pure food law the action of the varl- ous state food and dairy commission- ers showed in striking fashion how much good for the whole people re- sults from the hearty co-operation of the federal and state officials in secur- Ing a given reform. It is primarily to the action of these state commis- sloners that we owe the enactment of this law, for they aroused the people first to demand. the enactment and en- forcement of state laws on the subject jand then the enactment of the federal law, without which the state laws were largely ineffective. There must be the closest co-operation between the national and state governments in ad- ministering these laws. THE CURRENCY. Elasticity In Circulating Medium a Pres- ent and Prime Necessity. In my message to the congress a year ago I spoke as follows of the cur- rency: “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 enor- mous business development of the “Tloge Who Tear from @ny reason vnercountry, and within ten years there has been an increase in circulation per eapita from §$21.41 to $33.08. For sev- eral years evidence has heen accumnu- lating that additlonal legislation Is needed. The recurrence of each crop season emphasizes the defects of the present laws. There must soon Le a revision of them, because toleave them as they are means to incur liability of business disaster. Since your body adjourned there has been a fluctuation in the interest on cail money from 2 per cent to 30 per cent, and the fluc- tuation 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 vio- lent period of oscillation. Even worse than such fluctuations are the advance in commercial rates and the uncertainty felt in the sufficiency of credit even at high rates. All commerclal interests cessive rates for call money in New York attract money from the Interior banks into the speculative field. This depletes the fund that would other- Wise be available for commercial uses, and commercial borrowers are forced to pay abnormal rates, so that each fall a tax in the shape of increased in- terest charges is placed on the whole commerce of the country. “The mere statement of these facts shows that our present system is seri- ously defective. There is need of a change. Unfortunately, however, many of the proposed changes must be ruled from consideration because they are complicated, are not easy of compre- Lension and tend to disturb existing rights and interests. We must also rule out any plan which would materi- ally impair the value of the United States 2 per cent bonds now pledged to secure circulation, the issue of which was made under conditions pe- culiarly creditable to the treasury. I do not press any especial plan, Vari- ous plans have recently been proposed by expert committees of bankers. Among the plans which are possibly feasible and which certainly should re- ceive your consideration is that repeat-- edly brought to your attention by the present secretary of the treasury, the essential features of which have been approved by many prominent bankers and business men. According to this plan, national banks should be per- mitted to issue a specified proportion [ medicines. | nothing to concecl Lnoliing Jo concee] no_sccrefs 1o ki =l ab i il e taking Ayer’s Cherry Pectoral for ar Oug S your hard cough, then buy it and Ve publish the complete formulas of all our 135¢ aSingledoseof it. He knows We are proud of lh:r;:. 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