New-York tribune., 1907-06-25
KNOX TO YALE MEN.
Continued from first page.


ocal jeslousies or local and partial interests might
De disposed TO introduce and maintain
The necessity 10 exercise the national power over
commerce arises largely out of the failure OF the
states 70 regulate wisely great corporations created
By and under the dominion Of the states and en-
gagged IL interstate commerce That failure has led
% well known abuses which affect interstate com
merce. and thereby created the necessity Tor the
exercise federal regulation to prevent the ABUSE
sTATEs COULD HAVE PREVENTED.
The necessity for the exercise of federal regula-
ton almost always springs from causes the states
could have prevented.
The national power of regulation should only ne
Invoked when necessity for regulation exists Nor
nally and honestly conducted commerce requires
put little IL any governmental regulation and the
failure by Congress TO regulate interstate com
a1erce is equivalent TO a legislative declaration
-hat 81 shall be free Abnormal conditions in COM
nercial intercourse caused by monopolies, prefer
sntjal service rebates and the like destroy the
normal operations Of commerce and create the
semand Cor federal regulation to restore the rule
# freedom and equality.
The pressure of the accumulated evils and abuses
f many years of inadequately regulated commerce
n this country eliminated some few years ago
adequacy Of existing laws to meet the SITUATION
and the enactment of such additional ones as
should prove be necessary to restore and preserve
freedom and equality in interstate and foreign COM
nlerce-
The combinations to control the production, dis
tribution and sale Of commodities wnich were 70
be subjects Of interstate commerce; the COM
hinstions between and the mergers Of interstate
railroads. designed 20 bring under one control the
Try; the unjust determinations to Favored snip
GERS and localities, both in the carrying service
and the rates charged therefor; the secrecy sur
rounding the operations Of corporations render
ing service the public had utterly destroyed IN
many localities the ability Of other persons and
r0ncerns TO engage in commercial cornpeuuon WIN
the favored ones who enjoyed such unfair and ille
gal advantages.
6ealt with by national government, the theory
upon which the government proceeded, and some
observations upon certain mschievous nisconcep-
lions as 70 the scope OF the powers that have been
sucoessrully invoked 10 correct the evils have
named viii not. hope, be uninteresting nor IN
Instructive.
TESTS OF COMPETITION LAWS.
First the scope of existing laws was tested
through a series Of suits. These suits had for
their main purpose TO determine the effectiveness
of existing statutes TO reach new types Of comoi-
nation to restrain the free play OF me law OF
devices which had sprung from fertile and expert
rnced minds instructed in the interpretations the
courts had put upon the existing laws
The nurposes for which this litigation was I'M
dertaken were all accomplished The completeness
OF the federal power over commerce was reaInrileo
and declared TO extend among other ulhss 10 'he
This device which had been successfully employed
10 establish under control the leading pro-
6nr,Iye industries of the country declared IL
legal when utilized 10 absorb competing systems
OF interstate railroads, and thereby we escaped q
danger 10 our commerce, our government ana our
very liberties the magnitude Of which can scarcey
be gresped -,, 49,. - ,
wa likewise
hination between railroad company ana sIllr-
ner 10 grant the latter unlawful rebate which
results in the establishing Of monopoly Is
violation of the Sherman act. and that a court oI
eauity might restrain the guilty parties at the
suit OF The Attorney General Of the United states
as we'll under that act under the general jurls-
6ietion in equity OF almost equal Importance was
the decision that the operations Of a monopohsuc
combination within state may he so connected
with those between the states as 10 bring the
whole under the regulative power Of Congress.
DEFECTS IN NATIONAL LEGISLATION.
Notwithstanding the success which attended
these sui:s, there was developed number of seri-
pus defecJs and omissions in national legislation
necessary to be corrected II the avenues of COM
rnerce we're TO be kept open TO all upon the same
terms and II a speedy and "orkanIe remedy toI II
violations Of tho law was 10 ne placed III tIie
hands of the government itself 10 restore the rule
OF freedom and equality in interstate and Foreign
The LEGISLATION proposed 70 the 57th Congress as
necessary to accomplish the restoration or the
normal commercial rule, all of which was promptly
enacted.
First-That in respect Of railroad rebates the
omission in the act TO regulate commerce to punish
the beneficiary should be supplied by imposing a
penalty not only upon the carrier who gave but
upon the shipper who received such rebates, and
that the Lower Of the equity courts TO restrain
such practices at the suit Of the United states
should be made certain by statute
second-That # should he made unlawful TO trans
port traffic by carriers subject the act 10 regu-
late commerce at rate less than such carriers
published rate, and that all who participated in the
violation OF such law should be punished.
Thrd-That a comprehensive plan should be
framed 10 enable the government TO get AZ all the
facts bearing upon the organization and practices
of concerns engaged in interstate and foreign COM
uleree essential 10 full understanding thereof.
Fourth-Another step in Legislation which was
earnestly recommended was an act to speed the
final decision Of cases under the interstate COM
nlerce and antitrust laws.
LAWS GOVERNING TRANSPORTATION.
These laws. enacted during the short session of
law of the 59h Congress the principal feature
of which is the grant Of power TO the Interstate
Commerce Commission To fix reasonable rate for
the carriage of goods and persons.
These laws designed secure equality in
transportation service and equality. stability and
reasonableness H. transportation charges They
provide swift remedy the suit of the govern
ment in its courts Of equity. thereby relieving
the individual sufferer from the expense and delay
incident TO private suit.
All these laws have been declared constitutional
except the railroad law. and 10 that act
not yet passed upon by the courts, it is believed
by the great weight Of legal opinion be consti-
tutlonal IN respect 10 the power 10 fix reasonable
rates and practices
The public satisfaction resulting from the enact
rneat and the enforcement Of these statutes regu-
icting commerce has induced some persons to con
tend that the Congressional power 10 regulate
commerce Is a panacea for many other public
evils. and II is proposed utilize that power to
accomplish ends within the national iursdic-
power
The power 10 regulate the power 10 prescribe
lule py "hlch commerce is TO be governed
Inese are the words of Chief Justice Marshall in
Gibbons agt. Ogden.
This power of prescribing the rule by which
commerce Is 10 be conducted extends To commerce
itsef and to the instrumentalities of commerce
BY commerce itself mean the activities and in
1ereourse which constitute the cornmercisI 81
non. BY the instrumentalties OF commerce
mean the animate and inan inmate means used %
nsintain and carry commercial intercourse
As 70 these activities and intercourse which %,
butote commerce. Congress has from time 10 time
prescribed certain rules; such. for instance r the
rue that commerce shall free from rnono,oI,
sno restraint effected by combinations and fbat
the general rule of competition shall have frae
play. 1'' itee