The comet. (Johnson City, Tenn.) 1884-1916, 1905-01-05
State Lines .

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of corporations amounts to wiping out
of state line. This in large measure
is true. The authority of the states
has been steadily declining during the
past fifty years, and it is likely to be
less in the future than it is now. The
states are still important because there
are so many affairs strictly within their
boundaries that require state leglsla-
ton and supervision. But it has long
been manifest that this country could
attain its largest growth only as a COM
pact nation, and not merely as a feder-
alton of states. Capitalization of pow
er in the federal government has been
inevitable in order to obtain that unity
and concerted action needful to develop
fully the resources Of the country and
to expand it's commerce.
Forty years ago it became necessary
to put the banking business of the Uni.
ted States upon national basis, and
in spite of the objections of those who
feared the increase of the concentration
of power in the federal government
and wQo believed in maintaining fully
the principle of state rights, our ma
tional bank system was established. 1t
is significant that now it is seriously
proposed by the secretary of the treas
ury that the trust companies, now or
ganized under state laws, be permitted
to incorporate under federal law, and
the insurance companies, which have
long done business under state incor-
porations and state examinations, are
now asking for federal regulation.
In 1866 the railroads incorporated by
acts of state legislatures, discovered
that they could no longer carry on
their business as merely state systems,
and they had the following law enacted
by congress on June 10 of that year:
every railroad company in the Uni
ted States whose road is operated by
steam, its successors and assignees, are
hereby authorized to carry upon and
over its roads, boats, bridges and fer
ries, all passengers, troops, govern
ment supplies, mails, freight and prop
erty on their way from one state to an
other state, and to receive compensa
ton therefor, aud to connect with roads
Of other states, so as to form continu
ous lines for transportation of the same
| to the places of destination"
| This law has never been repealed
and it may now be found in section
1888 of the revised status. 1t practi
cally wiped out state line as regard;
the operation of railroads, 1t was
not until many years after, however
that the principle of federal supervis
ion of railroads was established by the
enactment of the interstate commerce
act, and now it is proposed to go still
further in the direction of centraliza
ton of power by giving to the Inter
state commerce commission or tc {
court of commerce authority to regulate
railroad rates.
With the railroads, the banks and,
possibly, the insurance and trust com
panies brought under the domination
of the federal government, it is but ont
step further to bring the great indus
trial companies doing an interstate
business under the same authority
Summed up, it all amounts to this, tina
the United States is to be q nation will
q capital IN" and all that that implies
That there are possibilities of danger
and of abuses in this Capitalization O
power there can be no doubt whatever
but however great this peril may be, il
is less to be feared than the opposite
extreme. The United States coult
never be a power in the commerce o.
the world, could never develop it's re
sources in the highest measure, anC
could never attain it's highest destiny
as mere collection of forty five differ
ent states, eacn supreme within itself,
and legislating for its own advantage
regardless of the welfare of the others