The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-02-18


of commerce and labor, OF the United
States, in an address before the In
dustrial Club here last night.
AS to the power Of the national gov
eminent to authorize the organiza
ton Of federal corporations. Mr. Mage
said there could be no question. The
existing system OF clashing state laws
Ia system on all sides at war with
litselfv-he regarded as intolerable
and he assured his hearers that the
consequence OF a federal corporation
ilaw such as President Taft had pro
posed could make for nothing but the
general good.
The purpose of the government to
regulate the corporations. in the opin'
ion Of the secretary, could not be con
sidered as an attempt TO encroach up
on state authority. but as a determin-
alton to employ authority for the so
luton of new problems. A change OF
attitude regarding the relation of ma
tional to state authority. he believed
had come over the country with the
development of problems too big for
the state individually to meet.
Among the more important prob
lens" said Secretary NageI. appears
to be the question whether or not the
national government may and should
authorize and regulate the organiza-
tion and conduct of federal corpora
tions. Only few years ago the bare
suggestion of such an idea filed the
public with dismay The authority
was denied and the policy was ques-
toned Today, the irreconcilable con-
flicts to which ordinary business or
ganizations are subjected in our
states have forced general recogni-
tion, that something must be done to
relieve the situation
"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 and south, city
and country, come the suggestions
| that some relief upon these lines must
Ibe worked out. The proposition has
now been squarely put before the
country. The president Of the United
States has made distinct recommen-
dation in a message calling attention
to the needs, and submitting for con-
federation a form to which legislA-
tors and constituents may give their
lattention."
In considering the proposition. Sec
Iretary Nagel stated, that three points
must be determined; first the ques-
tion of the governments authority
second, the conditions which make ad-
visable such legislation, and third,
the consequence of such legislation.
sIt has seemed to me from the very
start" said the secretary on the ques-
tion of authority, that not one could
subject this question to thoughtful
consideration without arriving at the
conclusion that the federal congress
must undoubtedly have the authority.
Prom the earliest case In which
the exclusive rights of congress to
regulate interstate commerce was con-
sidered. it was made apparent that
the authority to provide for the or
ganization of business corporations
was a necessary incident to the exer-
else 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 opportunities
lin dealing with the corporations, Sec
retary Nagel said he did not believe,
but he attributed the failure of the
states to cope with the commercial
conditions to inability rather than to
negligence.
"The plain and indisputable fact is
he said. that the commerce of these
organizations with which we are re9i-
" concerned has outgrown both the
boundaries and the authority of any
particular state. In other words, the
individual state is vainly struggling
to control conditions that extend be-
yond 1t with respect to territory as
we'll as power and the modern de-
mand for congressional action is
nothing but the plain, practical call
for an authority that is equal to the
occasion with which 1t has to deal.
Realizing that we have a national
commerce. we are naturally calling
upon national authority to control 1t,
and to protect it.
Secretary Nagel recited the develop
ment 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-