The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1910-02-23

too big for the state individually to
meet
Among the more important prob
lens" said Secretary Nagel, appears
to be the question whether or not
the national government may and
should authorize and regulate the or
ganization and conduct of federal cor
porations. Only a few years ago the
bare suggestion of such an idea filed
the public with dismay. The author
ity was denied and the policy was
questioned. Today, the irreconcilable
conflicts to which ordinary business
o CARNATIONS are subjected in our
states have forced a general recOg-
milton that something must be done to
relieve the situation.
Tafls Program Is Clear.
1.-The idea is not limited to any par
ticular locality of our country or to
any special class. From all parts,
east and west, north ana south, city
and country, come the suggestion that
some relief upon these lines must be
worked out. The proposition has now
been squa: ely put before the country.
The president of the United States
has made a distinct recommendation
in a message, calling attention to the
needs, and submitting for considera-
ton a form to which legislators and
constituents may give their atten-
ton"
In considering the proposition, Sec
retary Nagel stated, that three points
must be determined: First the ques-
nf .
second, the conditions which make
advisable such legislation, and third,
the consequence of such legislation.
ut has semed to me from the ve:y
start" said the secretary on the ques-
ton of authority, that no one could
subject this question to a thoughtful
consideration without arriving at the
conclusion that the federal congress
must undoubtedly have the author
ity.
From the earliest case in which
the exclusive rights of congress to
regulate interstate commerce was con-
sidered, 1t was made apparent that
the authority to provide FOR the or
ganization of business corporations
was a necessary incident to the ex-
ercise of that authority, and again
and again the supreme court has said
that congress has this power"
The charge against the states that
they had neglected their opportun-
tiles in dealing with the corporations
Secretary Nagel said he did not be-
lieve, but he attributed the failure of
the states to cope with the comm err
cial conditions to inability rather
than to negligence.
Corporations Grow Too Fast.
The plain and indisputable fact
is" he said, THAT the commerce of
these organizations with which we
are really concerned has outgrown
both the boundaries and the author
ty of any particular state. In other
words, the individual state is vainly
struggling to control conditions that
extend beyond 1t with respect to ter
ritory as well as power and the mod
ern demand for congressional action
is nothing but the ptain practical call
for an authority that Is equal to the
occasion with which it has to deal.
Realizing that we have a national
commerce, we are naturally calling
upon national authority to control
it, and to protect it."
Secretary Nagel recited the devel-
opment of business enterprises in the
country, showing the gradual growth
to the big corporation and the at
tempts of the states to legislate and
the resultant trouble because of the
varying laws, and he pointed particu-
la ly to one result of conditions as
they existed
Inconsistent Laws.
Not only Is commerce subjected to
inconsistent, conflicting and often de-
structive regulations" he said. but
the inevitable effect of such activity
is to create false competition between
the states at the expense OF that COM
merce. The state of lowest standards
forces the hand of all the rest. At
tempts at progressive legislation are
paralyZed just as one unfair COM
petitor always lowers standards every
where. Nor will the effo; is of the sew
eral states to promote unity of legis-
lation meet this difficulty. These eff
forts are most praiseworthy with re-
spect to all subjects which rest with
in the exclusive control of the sew
eral states; as to national subjects
they are worse than useless.
"All corporations in matters politi-
cal means government, and why re-
SOFT to mere understa ndings without
binding forces among the states, when
we have a common government to
deal with a common cause? Why not
have our federal government legis-
late where our governors can only
confer and recommends"
The need and purpose of federal
control of corporations, the secretary
stated he believed to be "simply to
place a private business company in
it's commercial activity precisely
where the constitution undertook to
put the citizens of the United States.
The purpose Is to organize companies
that may engage In interstate COM
merce under regulations fixed by the
federal government and free from the
unnatural and uneconomical embar-
easements which so far any state has
been at liberty to intelpose."
International Commerce.
Another phase of the question dis
cussed by the secretary was the in
ternational commerce of the country
Up to the present time, he said, the
country had rested in the belief that
developmen of domestic commerce
was sufficient. Other countries felt
the need of international commercial
development long ago and the United
States, he urged, must do all that was
necessary to meet what its competi.