Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-05-03

with the constitution OF the state ce
Massachusetts,. But this. / called
to the attention OF the committee Is -
proposed special law, and not a generst
law. Now, in the case which ] citeo.
Judge Blatchford's Supreme Court de-
cision. coming to this point. expressly
covers IL. and says that undoubtedly a
state has a right to pass general laws
administering and governing and super
viSing and regulating and controlling its
own creatures. whose charters were
taken out subject to those general laws.
Mr.. Hazleton-Well, this resolution is
simply. az view II. q supervisory reeo-
luton which Congress has a perfect right
to pass against any corporation that IL
Jurisdiction just the same as II 1t were
aimed at all the public utility corpora
tons in the District. Congress may
legislate against q class IL all are In the
same circumstances.
Mr.. Goldsborough-But not one Of .
class.
-Ar. Hazleton-But this resolution
does not operate against one OF a class.
companies in the District of Columbia"
1t does not make any difference whether
there Is but one or forty. The Ian
yuage Of the resolution Is broad enough
to take it out OF the narrow rule which
you lay down. and on that I will ind
you any amount of authority. You are
simply having to deal with a class.
You can group the whole or deal with
the class, either one.
Mr.. Goldsborough--Undou You
can group a class. but the law here Is
discriminatory. and you will find no de-
cision In the books to the contrary. 1
venture to say: and IL you do l VIII
If you will name one. I will surrender.
Where you strike at one of a class or
q subdivision OF a class. and say that
that subdivision shall not have the
privileges Of the balance OF them, you
are doing something that is discrimi-
natory. For example. we have COMPETE
tors-electric light companies. Now.
would 1t not obviously be discrimina-
tory to say that We should not enjoy
common law privileges that are Sc
cured to the electric light companies.
who ave in our class and who are our
competitors?
II you will take the Massachusetts,
statutes Of any state. you will find that
they are general statutes. and do what
that statute does. as you read from IL,
providing that all these companies
under one jurisdiction and one system.
and be regulated by the same law. l.
am free to say that is good system
for Congress to initiate and for any
state to initiate. 1t is the real thing.
Mr.. Coudrey-Then you take the posi-.
ton that this is class legislation?
Mr.. Goldsborough-I undoubtedly do.
1t is discriminating.
resolution to apply to all public utility
corporations in this DistrictIthen you
would think there would be no ques-
ton about its being legal?
Mr.. Goldsborough-Yes , IL you passed
Ia general law. applicable to all public
service corporations providing that they
should have their day In court, as YOU
have not done here, by which Trey
could not have their property taken
from them without due process Of law.
The Supreme Court has said that over
and over again.
Mr. Pearre-How does this resolution
day in court? II this resolution became
a law I have no doubt your company
would appeal to the law and to the
court. You would have your day IN
court in any event.
Mr. Goldsborough-That is not the DIM
Guilty. II the gentleman pIeases. II this
law is passed and our company had any
occasion to exercise its constitutional
rights, its common law rights, It's r1ght
Of self defense, for instance. in refundinx
its outstanding bonds, its three millions or
NEUTRALITY-SUSPICIOUS. could we escape bank
ruptcy? The company Is therepy oe-
prived OF the power or refunding those
bonds and taking care of them, or pro-
tecting it's existing contracts. Where.
then, is it to find it's day in corut? 1t has
not had 1t here. This hearing is not q
day in court.
Mr.. Hazleton-Mr Goldsborough. your
no other court.
Mr.. Goldsborough-That is giving Con-
gress judicial power
Mr.. Hazleton-.n this question. as on
nearly all questions. your court Ia the
tribunal in. the American Capitol here
Mr.. Pearre-From which ,you got your
charter.
Mr.. INSTRUMENTATION me one mo-
ment. Then legislative body is in eject
a court?
Mr.. Hazleton-I must proceed.
Mr.. Goldsborough-I beg your pardon
for inteFrupting you.
Mr.. Goldsborough-f the chairman
pleases, would'like to have the privilege
Of filing a brief to answer my brother.
and that. will give me an opportunity To
answer without interrupting him. !
apologize to him for having done so.
Mr.. Hazleton-No apology Is necessary.
l was going to say about TINS Massachu-
sets law, that it is based upon the theory
that the income Is fixed at a maximum.
based upon a stock capitalization In ac-
cord with the value Of the structural
plant. excluding the franchise. the good
will and the enhancement, which enables
sliding scale, by which, whenever the
earnings warrant, per cent reduction
is made in the price or q percentage OF
reduction is made on the rise OF the IN
come or Of the percentage OF income.
will not take any more OF the time or
the committee, but ] think in any event
IL that were to be adopted and worked
out here it would be well. 1t does not
AFFECT the question of this resolution In
any shape, because 1 think 1t Is absolutely
necessary as matter OF pubic pohcy
that the resolution should be adopted.
Now let me return.
The charter of the company is an i'm
perial franchise. Time alone can meas
ure it's future proportions. 1t outranks
in value the best of all the ducal patri-
monies of the old world: richer than the
combined crown jewels of twenty kings.
1t is one of the choicest grants OF incor-
poration ever conferred by the national
sovereignty upon its citizens. Its fncor-
porators pass out as the generations OF
men come and go, but the body corporate
lives on, in perpetual succession, and Is
permitted to enjoy, and probably viii be
SO permitted by the force of circum-
stances, the monopoly of the manufac.
ture and sale of gas in this jurisdiction.
reaping an abundant harvest twelve
times in each and every year in one OF
the most favored and fertile fields known
anywhere to the business which II car
ries on.
What is the consideration for all this
going from the company TO the grantorf
In the Dartmouth College case. Chief
Justice Marshall expresses it in this way:
THAT the objects for which a corporation
is created are universally such as the
government wishes to promote They are
benefit constitutes the consideration, ana
&I,1 rNl4 do ffnS, of