The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-02-18
Nagel Declares Federal Control
Necessary to Commercial
Preservation.
CONDITIONS NOW INTOLERABLE
Existing System of clashins State
Laws Should be Done Away With,
He Says, in Address in Chi
cago Last Night.


mercial preservation of the country,
declared Charles Nagel, secretary of
commerce and labor, Of the United
States. in an address before the Indus
trial club here tonight.
AS To the power of the national gov
ernment to authorize the organization
of federal corporations, Mr. Nagel said
there could be no question. The exist
ing system of clashing state laws-"a
system on all sides at war with itself
he regards as intolerable, and he as
sured his hearers that the consequence
of a federal corporation law such as
President Taft had proposed 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 determina-
tion to employ old authority for the
solution of new problems" change
Of attitude regarding the relation of
national 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
lems," said Secretary Nagel, appears
TO be the question whether or not the
national government may and should
authorize and regulate the organiza-
ton and conduct of federal corpora
tions. only few years ago the bare
suggestion of such an idea filled the
public with dismay. The authority
was denied and the policy was ques
toned Today, the irreconcilable con-
lcts to which ordinary business or
CARNATIONS are subjected i'm our states
have forced general recognition that
something must be done to relieve the
situation.
The idea Is not limited to any par
tlcular 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
be worked out. The proposition has
now been squarely put before the
country. The president of the United
States has made distinct recommend
alton i'm message, calling attention to
the needs. and submitting for consid-
Grafton a form to which legislators
and constituents may give their at
tention."
In considering the proposition Sec
retary 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.
1T has seemed to me from the very
start" said the secretary on the ques-
ton Of authority, that no one could
subject this question to thoughtful
consideration without arriving at the
conclusion that the fedora congress
must undoubtedly have the lthority.
From the earliest case i'm '. lich the
exclusive rights of congress to regu-
late interstate commerce was consid-
ered 1t was made apparent that the
authority To provide for the organiza-
ton of business corporations was n
necessary incident to the exercise of
mat authority. and again and again
the supreme court said that congress
has this power"
The charge against the states that
thcy had neglected their opportunities
IN dealing with the corporations. See
retary Nagel said he did not believe,
nut 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"
ne said, that the commerce of these
orsanizations with which we are really
Concerned has outgrown both the boun-
uaries and the authority of any par
ueular state. In other words the in
uiVidual state is valnly struggling to
control conditions that extend beyond
II with respect to territory as well as
power and the modern demand for
congressional action Is nothing but the
pam practical call for an authority
N'it Is equal to the occasion with which
mas to deal. Realizing that we have
national commerce. we are naturally
calilng upon national authority to
control II, and protect H."
secretary Nagei recited the develop
ment Of business enterprises i'm the
country showing the gradual growth
!" the big corporation and the a.
Wmpts OF the states To legislate and
ue resultant trouble because OF the
varying laws. and he pointed particu-
Ary To one result OF conditions as
they existed.
Not only is commerce subjected to
Inconsistent. conflicting and often de-
auuctiNe regulations" he said. "but
'"e inevitable effect OF such activity
!" create false competitor between
~" states az the expense of that COM
,"erce' The state of lowest standards
.'''es the hand of all the rest. At
"mp's nj progressive legislation are