The National tribune., 1909-02-11
THE TEXAS OIL CASE.

HE TEXAS sYiL
The decision by the Supreme. Court
of the United Hates affirming the ac-
ton of the Tekss courts in levying Q
fine of s1,s2s. .3b agsinst the wators-
Pierce Oil Co, lis rong. strong stride
in the directionGof maintaining States
Rights and States independence within
their constitutional limits. In the case
mentioned. which has been exciting a
great deal of attention, it was charged
that the WatersfPierce CO.. an append
age of the Standard Oil Co. had made
an arrangement by which the price OF
oil was maintained at from 10 to 20
per cent higher than elsewhere, since
it had gained practical monopoly In
Texas. The matter began to excite the
action OF the Texans 10 years ago, and
the permit of the company to do busi-
ness had been revoked. 1t was restored
by the efforts of Senator Joe Bailey,
supported by statements by II. c.
Pierce. the President. which have since
been shown to-be false, and Mr.. Pierce
is now under indictment The Texas
law against the company fixed fine of
from 5000 to $500 day. and the jury
assessed rate of $500 a day for 1,033
days from May 81, 1900, until time
in 1903 when new law superseded the
old one. Under this law the penalty
was fixed at $50 day, and the jury
found for 1,4SS days to April "a, 1907,
when the suit was begun. The Waters
Pierce Co. made the usual defense
against the law. that it was confisca-
tory, and that it was unconstitutional
in taking away property by arbitrary
action without judicial proceedings. In
its decision, written by Justice Day and
unanimously supported by the other
be no question of the right of a State
to regulate and control corporations
and to pass all necessary laws to en-
force this regulation. inside of certain
constitutional limitations the State has
absolute discretion as to how it will
proceed in the matter. So far from
being confiscatory, the evidence showed
that the dividends of the company had
reached the enormous figure of 700 per
cent per annum. The course of the
company was in fragrant defiance of a
law which the State had the right to
pass. and being so, the jury was en-
tirely within its prerogatives in fixing
the fine at the figure it did. No mat
ter how large in the aggregate, the fines
were yet within the limit prescribed by
the statutes.
This decision is of the utmost i'm
portance in many ways. the first being
the clear recognition of the right and |
duty of a State to regulate corporations |
doing business within its borders. 1t |
follows and confirms .Virginia's action |
in fixing raiiroaddrates and New Yoril's |
in determining what is a fair price for |
gas. This being the case, the recourse [,
Of those who claim to be injuriously |
affected by corporations is not -the re-
mote and costly United States Govern
ment and its Constitution. but their
own State and its Legislature and judi
cial machinery There is no need of
antitrust legislation By Congress if all
Of the States viii, attend to their own
proper business and pass such laws as
in the best judgment of their people
The situation demands.
This calls much-needed halt in the
towards centralizing every
hing in Washington, which has been
so much depIored by all farseeing men,
Il is common sense as well as good law.
rhe citizens of every State are much
better judges of what oppresses and
INJURIES them than can be the Congress
If the United States, and they should
nave the remedy near their hands for
Is much of the injustice as particularly
lffects them. This will not in any de-
,ree initiate against the Governments
powers and duties in such matters as
fleet the whole country. For example,
he State of Indiana should have the
most eomplete control over the rail-
oads in that State in the matter, of ser
ices to the people of Indiana. The
United States should have full power
nd be charged with the duty of car
ng for the interests of the people OF
ther States in their passage thru In
lana and from points far outside the
tate. These powers need not infringe
pom one anot er, nor is there, as has
een alleged. twilight zone" between
he domains of the Federal and State
1t seems to us there is a
lear, unmistakable line between the ,
wo powers, which no one need mis-
axe or infringe upon, and both Fed
raj and State Governments can exer- ,
Use their functions to the fullest in ,
ntire harmony with each other.
CONFEDERATE PENSIONS.
The Tennessee Legislature has passed S