The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1910-06-25

! subject, the vehicle and the agent Of
such commerce, and their various op-
erations.
Reference was made by Mr.. Wicker
cham to the condemnation. both by
courts and economists. OF the reckless
Issue Of stocks and bonds by railroad
companies without adequate consider
alton, which, he declared. had come
to be generally regarded as an evil.
certainly as demoralizing In Its effect
on the public as the carriage OF lot
terry tickets from one state to another.
Unwarranted Issue of Stock.
The twenty-year period OF railroad
receiyerships ard foreclosures testified
eloquently. he declared, to the practi-
cal effect of such unwarrantcd Issues
of securities upon the ability Of rail-
road companies to properly perform
their functions as instrumeAtalities
of interstate commences. whil0 the ut
terance of stock for Inadequate OF fic-
titious consideration hnd furnished tho
opportunity for the most irresponsible
and speculative control of those high.
ways OF commerce and had resulted
In the Injury which always followed
a ct0trol Of property by those who
had no real Investment in II. Such
control. Mr.. Wlckersham continued,
all experience demonstrated, would
not be generally exercised In the In
terests of the road and to Insure the
safe conservative management neces-
sary to meet the requirements Of tho
public md the proper discharge OF the
obligations imposed upon the carrier
by law On the contrary. 1t was al
most inevitable that such control
would be employed for purely specula-
tive purposes and to secure immediate
profit to those in temporary control.
"Watered' Stock Abuse.
1t was this public aspect which lent
force 10 the conviction that "watered"
and bonus stock" was one of the
greatest abuses connected with the
management OF corporations and II
was this effect upon the fitness OF the
carriers to perform their duties under
national legislation that required and
justified federal supervision and con.
troll OF the subject
The Attorney General admitted
that the federal government could not
confer on a state corporation power
to borrow money and Issue obllga-
tlons therefor. nor to create and Is
suo shares OF stock Only the powor
which erected the corporation could
vest Il with authority for those pur.
poses.
But" he co0tepdcd, under all the
rules and aualogies. to which refer
ence has been made. congress assur-
edly may regulate and restrain tho
state corporf tIon in. the exercise of
these as we'll as OF other corporate
powers, and may prohibit It from Is
sIang obligations or stock for any
purpose relating to Interstate OF for
eign commerce except IN accordance
with rules and restrictions prescribed
by ii for the purposes OF preventing
tho evils above referred to.
Regulation Of Interstate Commerce.
In that respect that national gov
ernmeDt having adopted the state cor
poration as an agency Of interstate
commerce. may subject It to the same
regulations with respect to the means
of raising money for the purpose Of
carrying on SUCH commerce az II
could impose upon a corporation OF
Its own creation. Tho end 1t legiti-
iudtt, VIZ, Tue IeeuldLlOu Ol lnt9T-
state commerce? II is within The
scope OF the constitution.
THE means suggested are appro-
priate TO cerrect an evil which has
had in the past very real effect
upon the ability of these instrument
tallties to carry on commerce among
the states In conformity with rules
and regulations constltutionally estab-
lished by congress, and the means
are plainly adapted to that end. On
reason. and on authority. therefore.
such legislation Is within the scope
OF the constitutional power OF con-
gresS."
Liability OF States.
II was contended that a state cor.
poration ayailing OF the powers con-
ferTed by congress became thereby
subject In these respects In which
congress had legIslated. to all the
conditions and limitations imposed by
congress on the exercise OF those pow
ers. as completely as though they
were written into the charter of such
corporation.
Again, the amount of stock which
a carrier corporation might issue and
the extent Of the obligations which
it might incur. had direct effect on
h. LOT Ir1a of