The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-09-24
Where Does Mr. Chanler stand with
Regard to Federal Invasion OF
New YOrk's Constitutional


IF lieutenant Governor CHAMBER
wants, as Of course he does, the full
Democratic vote OF New York for Gov
ernor up State and down State he will
speak out, speak decisively and speak
Immediately In behalf Of that essential
article Of the old Democratic faith and
creed to which Mr.. BRYAN would not
give q place in the Denver platform.
The candidate Of the Denver conven-
ton said in his acceptance speech:
The Democratic party does not seek 10 ami.
nnate al eorporaions: It simply asserts that 40 the
Government creates corporations II must retain
the power 10 regulate and control them"
Which Government created them2
II VIII be difficult for Mr.. BRYAN to
name any existing corporations that
Congress created except the national
banks. The Federal Government did,
it is true, forty years and more ago
charter and attempt to manage rail-
ways to the Pacific. The country has
never seen such,examples Of overcapi-
talization, reckless financing. oorrup-
ton and inefficient supervision Al that
which In 1893 put the Union Pacific into
the hands Of receivers. That enter
prise had to be reorganized In 1897
under charter from Utah, and the
United States Government had to be
excluded from control.
The power that creates corporations
should no doubt control them, and
hence, under the Constitution, New
York has exclusive jurisdiction to con-
troll hers. The Supreme Court de-
clared in the Northern Securities cas-
that New York could create its cor
~porations, define their purposes, fix
the size of their capital and decide who
may buy, own and sell their stock. 1t
added that New York a authorize
it's corporations to engage in interstate
commerce and can even maintain mo,
nopolies in its own internal trade, but
OF course cannot interfere with law
full rules made by Congress to regulate
commerce among the States
Now, creating by New York law a big
producing or trading oorporation-big
enough for New York markets-is not
creating a monopoly unless that was
the proved intention OF the inoorpora-
tors. Congress cannot reduce the size
OF New York corporations.
The Supreme Court has within the
last year defined interstate commerce
as including traffic, intercourse, trade,
navigation, communication, the transit
OF persons, and the transmission Of mes
cages by telegraph-indeed every spe-
cies of commercial intercourse among
the several ~States-but not that COM
merce completely internal
The Supreme Court added that Con-
gress has "a large discretion in the Sc
lection or choice OF means but they
must have a direct reference to the
end sought, "a real or substantial re-
lation to or connection with the COM
merce regulated and not "a gross
p~eryersion Of the principle" The means
used must execute the power to regu-
late the movement Of goods and per-
sons across the State lines. and not have
merely a remote, fanciful. indirect or
incomplete relation to the expressed
power.
Under the guise and pretext Of exc
cutting the interstate commerce clause
OF the Constitution both Mr.. RoosE-
WELT and Mr.. BRYAN endeavor illegally
to put in the power Of Congress the
management Of the details of New
York corporations IL they do an inter
state business. There is a distinct diff
ference in law between a power to regu-