The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-06-24
INTERPRETED
IN SPEECH
NEW LAW
.--.-
WIcKERSHAM TOLD OF
M A NY PAST
WRONGS
ri --~.- N
The new LAW
IS ONE or GOOD
Shows How NatIon Must Act
With State in Controlling
Big Concerns
tBy Associated Press;

Chicago, June 24.--ln vigorous
defense OF the power Of the National
government to legislate on the sub
ieet of stocks and bonds by railroad
corporations subject to the Interstate
commerce act, Attorney General Geo.
w. Wickersham spoke for an hour this
morning before the Illinois state bar
association. The basis for his talk
was the provision in the new rail
road law authorizing the president to
investigate questions pertaining to
the issuance OF stocks and bonds by
railroad corporations and the power
OF congress to regulate them. The
enactment of such law, he con-
tended, was not nearly SO radical a
step as was the enactment of the per-
missive act OF 1866 which gave to a
railroad corporation of one state the
right to CARY on interstate commerce
or the interstate commerce act OF
1887. The attorney general pointed
out that opposition had been made
To every progressive measure of COM
merce regulation, But" he declar-
ed. in closing his speech, "the CEN
tralizing tendency has gone steadily
on. and the control of congress over
Interstate railroad companies has
been exercised In an increasingly
mAlafensiNe manner. Such pro-
gress is inseperable from growth.
The great arteries of communication
between different parts OF the cOun.
try and the instrumentalities which
control their operation can only be
properly regulated in the public in
terest by the central national power;
a power which is sovereign, which is
exclusive when exercised; and which
should be exercised to correct every
evil OF public character which ex-
perience demonstrates to be sucep.
tible OF correction only by national
legislation
Cites Numesou, Authorities.
Numerous legal authorities were
cited by the attorney general from
which he declared it may confident
" be asserted that while congress-
may itself create corporation for the
purpose of carrying on interstate
commerce, 1t may also prescribe the
rules and regulations under which
corporation created by the laws OF
state may conduct such commerce,
and that when IL does so, such state
corporation might engage only in such
commerce In conformity with the
rules and regulations so lai ddown
by congress; and that these rules
have reference not Only to the ex-
change of goods and commodities,
but to the subject, the vehicle and
the agent of such comgesc7, and their
various operations.
Reference to Condemnation.
Reference was made by Mr.. Wick
ersham to the condemnation, both by
courts and economists, of the reckless
issue of stocks and bonds by railroad
companies without adequate consid
GRAFTON which, he declared, hac
come to be generally regarded as al
evil, certainly as demoralizing in IL
effect on the public as the carriage
{. of lottery tickets from one state t
another.
Twenty Years Of Errors.
fut tNthty yCato pNilVu VI i"sii'",
receiverships and foreclosures, testi
fled eloquently, he declared, TO ths
practical effect of such unwarrantet
Issues of securities upon the abilit,
of railroad companies TO propertl,
perform their functions as instru
mentalities OF interstate commerce
while the utterance OF stock for mad
aquate or fictitious consideration ha'
furnished the opportunity for tn
most irresponsible and speculative
control of property by those who hal
no real investment In II. Such cor
troll, M. Wickersham continued, al
experience demonstrated, would no
be generally exercised In the intel
est OF the road and to ensure the SAT
conservative management necessar
to meet the requirements OF the pus
lie and the proper discharge OF tn
obligations imposed upon the carrie
by law. On the contrary II was a
most inevitable that such contrt
would be employed for purely spec'
lative purposes and to secure imme'
late profit to those In temporary col
troll.
1t was this public aspect which lei
force to the conviction that "watered
and bonus stock was one OF th
greatest abuses connected with n
management OF corporations and
was l,sis effect upon the f'frcss
the curriers' TO perform their duti'
under national legislation that :