The Washington herald., 1907-09-01
National Incorporation OF Railroads

Edgar II. Farrar. the New Orleans ju-
rist whose Interpretation Of the post
roads clause of the Federal Constitution
deeply impressed President Roosevelt. has
prepared an elaborate paper in defense Of
his views for presentation to the Ameri-
can Bar Association. His object in this
paper is to demonstrate that under the
post-road clause "the Congress NAV or
ganize a system OF national post-roads
corporations as instrumentalities of the
Federal government 10 construct and Cd
crate post roads, with the incidental
power to deal in transportation of persons
and property" In support Of this thesis.
Mr.. Farrar marshals q large number OF
court decisions bearing on the power Of
Congress 70 create corporations, TO exer-
else the right Of eminent domain, and 20
establish post roads. As to the last-men-
TONED power, Mr.. Farrar holds that It
includes authority to construct and oper-
ate post roads, as well as to designate
them. His view of the meaning Of the
post-road clause is thus stated:
The proposition Is impregnable that the Fed
eral government has the full and complete power 70
establish all ever this country. and from each 10
cality to every other locality in it, n system Of post
reads that it may locate such roads and condemn
property therefor in its discretion subject onlv 70
the obligation of making compensation for property
taken OF damaged and 10 the obligation of not in
terfering with the instumentaiities Of the State
governments; that these roads nav be Of anv sort
or kind the Congress may select dirt roads turn
pixies, railroads moved BY steam. electricity. or
any other power; that it may confne the use of
these roads strictly 10 its own purposes postal gov
eTnmcutal and military. or il mas permit their use
for other purposes: that it may permit these usss
for other purposes free Of tolls and charges. or i,
may fix for such uses any tolls or charges IT nav
think proper.
Congress having the power TO construct
post roads. Mr.. Farrar argues that Con
gress may also authorize the formation Of
corporations, analogous to the national
bank corporations. TO facilitate and assist
the execution Of this express power. Hav-
ing broad. unrestricted. and unlimited
grant Of power to establish post roads
and having also the power to create cor
porations as instrumentalities to facilitate
the execution Of its powers. says Mr.. Far
rar. sit appears TO me that the conclusion
lis irresistible that the Federal govern
ment has the right TO establish national
post-road corporations. and TO give them
power to deal in the transportation Of
persons and things as a convenient. ap-
propriate. efficient. and hence necessa-v
and proper. means to accomplish the pur-
pose for which their governmental instru-
mentality is established.
This power to create national transpor-
tation corporations. Mr.. Farrar points
out is not derived from the interstate
commerce clause Of the Constitution. and
so is not subject to the limitation of that
clause. which restricts the power of Con
gress to regulation of commerce among
the States, reserving to the latter the
regulation Of commerce within their own
boundaries. Nevertheless. Mr.. Farrar
thinks the national post-road corporations
would not infringe on the reserved rights
Of the States. He says that the States
have the same right as the national gov
eminent to charter transportation cor
porations, and to build and operate state
highways, and he sees no reason why
Federal postal highways and State high
ways should not cO-exist IN the same ter
ritory. He believes. however, that the ma
tional post-road corporations would hove
many advantages over State transporta-
ton companies, Just as national banks
have many advantages over State banks,
and so conceives It possible that the
State companies would prefer to surren-
der their charters and become national
corporations. Indeed. this is regarded By
sir. Farrar as one of the chief objects to
b. accomplished by the national post-road