Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-02
APPEAL OF HUGHES
He Defends the Public Utilities
Bill in a Dinner Speech.
ATTENDS UTICA BANQUET
New York's Governor Replies to OPP
ponents in Legislature.
WANTS SUPPORT OF PEOPLE
Believes That Importance of late su-
pervision Of Public Service Cor
porations is Conceded.
WANTS SUPPORT OF PEOPLE

| UTICA, N. Y, April Gov. Hughes was
| the guest of honor at the annual banquet OF
| the Utica chamber of commerce last night
1 The governor and his military aid, Col. Tread
| we'll, were taken in an automobile to the
! Fort Schuyler Club, where Assemblyman
| Hart gave a luncheon to about 100
| William Townsend, representing the pres
| en-: democratic city administration. made
a brief speech, In which he said that
! Uticans, regardless of party, were stand
! ing behind the governor. In response Gov.
| Hughes declared it to be the duty of the
executive to stand always for the interests
! of the people, and affirmed his belief that
| an elected representative who does his duty
need fear nothing from the public.
Gov Hughes was left free to select his
toast but It hao been limited that he would
discuss the public utilities bill now before
the LEGISLATURE and defend his position on
the measure.
The Governors Speech.
Gov. hughes said:
The Importance of providing effective
; state supervision of public service corpora
tons seems t. be generally conceded.
shall no. recount the grievances which have
made the subject ere of paramount pubic
interest. 1t is suffc'ent to say that the
people without ani.nCsity toward rights of
property. hut with a just inslstence upon
the Pc, Torrance OF public obligations. de-
mand that the state shall exercise It's
power over its creatures and compel Que
regard tor the duties which are correlative
to the privileges 1t has granted.
Federal regulation is not substitute
for state regulation. Federal powers ana
state powers are exercised In dlneren.
spheres Congress has complete authority
Owe. interstate commerce and the state
cannot in:eyfe with the exercise OF us
prerosatives ariG It is desirable that the
federal authority shall be fully exercised
until every abuse incident to interstate
commerce is ended. But however broaoiy
interstate commerce may be dehneo tnele
will remain the problem OF transportation
wholly within the state and OF other local
public service. Over local or domestic
commerce as distinguished from Interstate
commerce Congress has no power 10 exert
control and If the citizens OF the state are
to be protected against abuses or corposate
privileges In connection with such locai OF
domestic commerce they must look Tor thelr
remedy to the state and to the state Alone
State and Federal Control.
at has been suggested that it is a griev-
Gus thing that railroad corporation, Tor
example. should be subjected to the laws
of many different jurisdictions. Undoubt-
eddy annoyances may be caused by vari-
ETY. of laws and regulations. But so far as
interstate commerce is concerned the red
eral authority Is supreme, and as to all
matters of through transportation there is
no room for conflict We may be sure that
if the act of any state legislature or the
order of any state commission operates as
a regulation of interstate commerce ii will
instantly be halenged by the watchful and
astute representatives of the corporations
affected, the federal courts will take 1urls-
dictiOn. and the supremacy or the FEDERAL
authority under the Constitution will be
INDICATED. It is proper, of course. that the
state in the exercise of its authority should
take account of wise legislation of Con-
gress. Useful efforts may a'so be made to
promote harmony in state legislation. And
any state that sets high standard in Its
legislative scheme of state supervision and
In it's efficient administration Of the law
will contribute powerfully toward similar
action in other Jurisdictions and to the es-
Enlistment throughout the country of
proper administrative standards. But there
is no reason why the state of New York
should fail to enact just Law In the inter-
est of it's citizens because of che action or
lnaction of other states.
Reason for Commission.
1.-THE first question presented is. Why
should there be a railroad or pubic service
commission? Every power that a corpora
ton has is derived from the legislature
which creates it. The Legislature defines
what powers it shall exercise and the con-
ditions upon which it shall conduct Its oper-
constantly subject to legislative control to
the end that it may be required to perform
in proper manner the service 1t was char
tered to render. So that every question of
rate of fare, of safety appliance or Of suit
able equipment and facilities is a question
primarily for the legislature, which, within
constitutional limits, has a right to define
the obligation Of the corporations.
There are many other phases of the sub
ject to which 1 should be glad to call at
tention. The power to issue stock and bonds
and to invest in the securities of other cor
porattons is a power derived from the leg
islature and subject to such conditions as
it may impose. No consolida ton or merger
Of interests can take place except pursuant
to legislative authority. Evils that have re-
suited from an abuse of the freedom which
has been enjoyed under our corporate laws
are patent to all. 1t is not simply or primar-
lily the question of protection to the In
weston. The paramount demand Is that
through the improper issue of securities
there shall not be provided a motive for
crippling the public service or basis for
demanding extortionate returns. The power
of the state should be exercised to compel
respect for the public interest