Omaha daily bee., 1903-01-09
Enjoy SMOKER IN EVENING
J, II. Mcintosh Reads Paper on ''POwer
of Congress to Regulate
Corporations"

II was through the blue haze from many
rich Havanas that the visiting delegates to
the annual meeting Of the State Bar asso-
citation saw Omaha on their first night here.
They we're the guests OF the Omaha Bar as
ISOLATION at a smoker given In the parlors
Of the Commercial club, and the natural
afnnity of all legal minds found Just the
proper flavor In the mellowing smoke to
make the evening q social success. Not all
the delegates had yet arrived, but those
who were in town were glad of 1t, and
those who we're not will be sorry for 1t
when they hear today what they missed.
The sole BET speech Of the evening was
by ]. H. Mcintosh, whose subject was, The
Power OF Congress to Regulate Industrial
Corporations" The paper treated the sub
ject exhaustively, each point being rein
forced by citations from federal court de-
cisions. The conclusions Of the speaker
upon the points at issue were:
From the very nature OF the thing there
ia NOT nor can be, any connection what
ever between Interstate commerce and the
form of the corporate organization, the
scope OF the corporate rights, powers,
formed for or engaged In the production OF
articles that ma become the subjects OF
interstate trade; there Is not, nor can DE-
state mme and the property owned or
controlled by a corporation engage in
acouiring property, or the place, or the
extent, or the methods OF Its productive
operations.
stitution, then, congress cannot by direct
legislation regulate Industrial corporatlohs
In respect to their capitalization, thelr IN
Vestments, the motives that influence them
or In any manner supervise or control thelr
productive operations, These are not com
merce. Their corporate franchises are de-
| rlyaa from the ataIpg. which na0 an un-
bounded right to sgrant them. What uses
they shall MAKE of these. franchises. or
ends accomplished under them, the states
that granted them may say, net congress.
When, however, q corporation has monopo-
LIKED the production and sale OF q pnphe
good. limit the price charged In interstate
trade.
regulate Industrial corporations are con-
fined within narrow limits. Broadly speak
ing. congress seems to be powerless directly
10 regulate or restrict the organization OF
Industrial corporations, to limit their cap
italization, TO Inquire into or interfere with
their Investments or to question the mo-
lives or 10 control the methods OF theiI
productive operations, Nor apparently ear
congress do any of these by indirection. In
short. under the distribution of the powers
OF government agreed upon between the
United states and the states and the PEG
Congress cannot reach these corporations a
ali until their transactions either becomt
| interstate commerce, or ulrectly ana imIne
diately affect IL.
on this great question, however, upol
which there Is so much diversity OF wei
matured opinion, the supreme court alon'
much concerned 10 know what can be don
and what cannot. AS yet, the Sherman
law has not been fully developed. Then
are those that believe it's provisions, 1
faithfully enforced, would furnish full re
lief. The bill lately introduced in congres
by senator Hoar. II II should become a law
covers the whole case; and II sustained b
the court, cannot but prove a yaluabl
measure for regulating these corporations