The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1907-06-25

sfonal powers are applied to new con.
ditions it is not, as it sometimes
seems to be, an extension or expan-
of change il or extension or expan-
sion of the subject upon which the
power operates. Neither the power
to regulate commerce nor the concep-
tion of its scope has expanded beyond
its definition by the Supreme Court
when first considered, nearly one hun
dred years ago. 1t was then pronounc-
ed complete in itself, that it may be
exercised to its utmost extent and ac-
knowledges no Limitations other than
are prescribed by the Constitution
The design and object of that pow
ed in the history sof the Constitution,
was to establish a perfect equality
amongst the several states as to COM
mercial rights and to prevent unjust
and invidious distinctions which local
jealousies or local aid partial inter
and maintain
The necessity to exercise the Ma
tional power over commerce arises
largely out of the failure of the states
to regulate wisely great corporations
created by and under the dominion of
the states and engaged in interstate
commerce. That failure has led to
well-known abuses which affect inter
state commerce, and thereby created
the necessity for the exercise of Fed
eral regulation to prevent the abuse.
The necessity for the exercise of
springs from causes the states could
have prevented.
The National power of regulation
should only be invoked when neces-
sity for regulation exists. Normally
and honestly conducted commerce re-
regulation, and the failure by con-
gress to regulate interstate commerce
is equivalent to legislative declara-
ton that it shall be free. Abnormal
conditions in commercial intercourse
caused by monopolies, preferential ser
vice. rebates and the like. destroy the
create the demand for Federal regu-
lation to restore the rule of freedom
and equality.
The pressure of the accumulated ev-
lis and abuses of many years of inadeNI
Quately regulated commerce in this
country eliminated some few years
ago in an imperative necessity for ac-
ton to test the adequacy of existing
laws to meet the situation, aid the en-
actment of such additional ones as
should prove to be necessary to re-
store and preserve freedom and equa-
lity in interstate and foreign COM
merce.
The combinations to control the pro-
ductioa. distribution and sale of COM
modities which were to be subjects
of interstate commerce.: the combina- !
tions between and the mergers of in |
terstate railroads, designed to bring |
under one control the transportation |
business of large areas of the country;
the unjust determinations to favored |
shippers and localities both in the car |
rying service and the rates charge" 4
therefor: the secrecy surrounding the
operations of corporations rendering |
service to the public had utterly de- |
stroyed il many localities the ability |
of other persons and concerns to en- |
gage in commercial competition with |
the favored ones who enjoyed such un-
fair and illegal advantages.
A brief statement of now this stu
alton was dealt with by the National |
the theory upon which |
the Government proceeded and some |
upon certain mischievous |
as to the scope of the |
powers that have been successfully |
invoked to correct the evils I have
will not. hope be uninterest-
ing nor uninstructive.
First, the scope of existing laws was
tested through a series of suits. These
determine the effectiveness of exist
ing statutes to reach new types of com
bination to restrain the free-play of
the law of competition. and new and
subtle discriminatory devices which
had sprung from fertile and experien-
ced minds instructed in the interpre-
tations the courts had put upon the
existing laws.
The purposes for which this litiga-
ton was undertaken were all accom-
Dlished. The completeness of the Fed
aral power over the commerce was re-
and declared to extend among
other things to the holding company.
This device which had been success
fully employed to establish under one
control the leading productive indus
tries of the country was declared il
egal when utilized to absorb compel
ing systems of interstate railroads,
and thereby we escaped a danger to
DUR commerce. our Government and
our very liberties. the magnitude of
which can scarcely be grasped.
It was likewise judiciany determin-
ID. that a combination between a rail
,oad company and a shipper. to grant
he latter an unlawful rebate which
'esults in the establishing of a mono
poly, is a violation of the Sherman
Act. and that court of equity might
'estrain the guilty parties at the suit
VI the Attorney General of the United
States, as well under that Act, as un-
Ter the general jurisdiction in equity.
)f almost equal Importance was the
iecision that the operations of a mo-
lopolistic combination within a State
nay be so connected with those be 5
-ween the States as to bring the
Whole under the regulative power of
Congress.
Notwithstanding the success which
Lttended these SlIitS there was deyel- I