New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-18
NATION AND STATE
NdGEL SEES NO CLISH
Says There Is a Zone in Which
Both Must BE 1cfiTc.

Boston. March lT.-Charles NRgel. Secre-
iaTy OF Commerce and labor. In an adj
dress before the Commercial Club tonight
discussed the question Of federal and state
authority. A member OF the Presidents
Cabinet. who has been consulted freely by
him In regard 20 measures I'm Congress
which have served 60 bring the question of
federal and state authority into prominence.
the seeretsry's remarks were heard with
great interest
In beginning his address Secretary Nasel
discussed the fear Of a clash between state
and national authority. which he believed
unfOunded. He said:
For some time there has been a growing
apprehension that the old clash between
neHed. The idea that the state may be
embarrassing national problems apparently
has no supporters. That federal authority
Is encrOaching upon the state rights Is In
many quarters assumed Some Of the bills
now pending In Congress have served 90
bring this issue into prominence. notably
the proposal 90 authorize the organization
OF federal corporations. and I'm a measure
also the amendment 20 the Constitution OF
the United States 20 authorize the income
tax. il has seemed 90 me that perhaps We
dwell too much upon the exact line OF
cleavage between two authorities which,
Fair consideration for the jurisdiction OF
each would I'm my judgment be more 20 the
point, and. above ell. we shall have 20 APP
preeiate that there is a zone I'm which both
federation and fairness for each other.
Should Be Cooperation.
Mr.. Nagel then reviewed the gradual de-
velOpment OF federal authority since the
adoption OF the Constitution. In which. he
said. I'm the field OF regulation Of railroad
rates and other subjects. I'VE have trav-
tn
The growth Of national authority he at
tributes only in part TO the negligence Of
the states, and added:
In my judgment. the great need 81 the
day is tolerant and intelligent cooperation
hetEeen the two authorities, federal and |
state l have no question that unless state
authority more successfully supplements
the federal government, the latter will OF |
necessity have 20 extend IT'S power 10 the
very limit given by the Constitution.
Federal Corporations.
Coming TO the question OF federal corpO-
rationS. Mr.. Nagel said:
I know Il is contended that the federal
congress has no right under the interstate
clause % the Constitution 20 authorize the
organization OF commercial corporations.
EOr my part I do not share that doubt. I
IL is insisted that the national authority is
one OF enumerated powers, and that the
right 10 authorize these business Organiza-
that has been expressly given. I do not
belieVe that a national government, con-
ceded 10 have the right 20 authorize the
Organization Of national banks based upon
an implied power can be denied the right I
10 organize business corporations implied
from an express power. 7 believe that the
right 20 control the commercial agencies 10
engage I'm interstate commerce Is just as
clear as the right 20 determine what kind
Of articles shall be made the subject OF
that commerce.
But with respect 10 foreign trade. national
authority Is even more clear In fits Tela-
ton 20 foreign affairs the United States
government IS not restricted 20 delegated
powers, which the states at no time were
IN position 20 confer. but the United
sity must belong 20 a government in its re-
latiOns 10 foreign countries.
II appears 20 me that I'm this compare
lively new domain Of national activity the
United States government has the undOubt-
ed right 20 promote the cause % foreign
trade by any agency 70 which n NAV decide |
20 look and that the power to authorize the |
organization OF commercial corporations for
that purpose cannot be questioned upon
That right once conceded, the problem
viii be solved BY practical conditions, as
like problems so frequently have been set |
tied. The national hank derives its au-
thOTity from the United States government. |
hut no one denies its right 10 engage I'm |
local business A federal corporation once !
organized for foreign purposes In the very
nature ~ things must be active I'm the do
nestle field. BY the force Of circumstances
n must ~ engaged IN interstate business, I
and ultimately II will deal I'm purely local 4
commerce.
No Fear Of Large Concerns.
The fear Of large concerns Is unfounded. !
The United States cannot afford 10 be [
afraid ~ large problems or Of enterprise
on a large scale. That government must
be prepared 10 protect them. and is un- I
douhtedlv prepared 10 control them. The
best cooperation which the states can offer /.
is "a Weld 10 proper and adequate authority
field which they cannot cover. Much Of
our embarrassment today Is 20 be at /
tributed 10 the plain fact that the states /
have been graphing with impossible con- /
ditiOns. This Is precisely what tho inter !
state commerce clause - the Constitution /
was intended 20 anticipate and 20 prevent /
The states have been stubborn In the as /
seTtiOn Of rights where their efforts must /
prove futile. and they have neglected their 7
opportunities where measures might be OF
inhnite benefit 10 the general public.
The development Of commercial interests /
% necessity cannot respect the boundary /
Of any state. but reaches from one state /
into another and from one country into an /
other, and In the very nature of things
he left 20 the care Of the national I