The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1910-06-24
W|CKERSHAM ON
THE DEFENSIVE
ATTORNEY GENERAL TELLS I'LL.
NOlS BA3 ASSOCIATION %
THE NEW RAILROAD LAW.
MEANS REGULATION Of STOCKS
Wickersham Says Provision Of New
Law Authorizing the President to
Investigate Issuance of Stocks and
Bonds is Not Radical One.


Bonds is Not Radical One.
Chicago. June 2I.--In a vigorous
defense of the power of the national
government to legislate on the sub
ject of the issuance of stocks and
bonds by railroad corporations sub
jcct to the interstate commerce act,
Attorney General George W. Wicker
sham spoke for an hour this morning
before the Illinois State Bar associa-
ton. The basis for his talk was
the provision in the new railroad
law authorizing the president to in
yestigate questions pertaining to the
issuance of stocks and bonds by
railroad corporations and the power
of congress to regulate them. The
enactment OF such a law, he contend
ed was not nearly so radical step
as was the enactment of the permis-
slve act OF 1866 which gave to a
railroad corporation of one state the
right TO carry on interstate COM
merce, or the interstate commerce
act of 1887. The attorney general
pointed out that opposition had been
made TO every progressive measure
of commerce regulation. But he
declared, in closing his speech. the
centralizing tendency has gone stead
lily on, and the control of congress
over interstate railroad companies
has been exercised in an increasing
ly comprehensive manner. Such prog
ress is inseparable from growth. The
great arteries of communication be-
tween different parts of the country
and the instrumentalities which con-
troll their operation can only be prop
erly regulated in the public interst
by the central national power; a
power which is sovereign, which is
exclusive when exercised; and which
should be exercised to correct everJ
evil of a public character which eX
perience demonstrates to be suscept
ible of correction only by national
legislation"
Numerous legal authorities we're
cited by the attorney general from
which he declared it may confidently
be asserted that while congress may
itself create corporations for the pur-
pose Of carrying on interstate com
merce, It may also prescribe rules
and regulations under which a cor
poration created by the laws of
state may conduct such commerce,
and that when 1t does so. such state
corporation might engage only in
such commerce in conformity with
the rules and regulations so laid
down by congress; and that these
rules may have reference not only
TO the exchange Of goods and com
modities, but to the subject, the
vehicle and the agent of such com
merce, and their various operations.
Reference was made by Mr.. Wick
ersham 10 the condemnation, both by
courts and economists, Of the reck
less issue of stocks and bonds by
companies without adequate
which, he declared,
had come 70 be generally regarded
as an evil, certainly as denoraliz-
ing in its effect on the public as
the carriage of lottery tickets from
one state to another
The twenty years period Of rail
road receiverships and foreclosures. !
testified eloquently, he declared, to
the practical effect of such unwar
ranted issues of securities upon the
of railroad companies to prop
erly perform their functions as in
strumentalities of interstate com
meTce while the utterance Of stock |
for inadequate or fictitious consider |
alton had furnished the opportunity /.
for the most irresponsible and spec /
ulative control of these highways of /
commerce and had resulted in the /
injury which always followed a con. |
troll OF property by those who had /
no real investment in It. Such con