The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-06-25
ATTORNEY GENERAL
MAKES A STRONG
SPEECH IN CHICAGO
Contained From page Ope)

Interstate commerce.; while the utter
ance OF stock for Inadequate or tic-
tit'ous consideration had furnished the
opportunity for the most irresponsible
and speculative control or these high
ways Of commerce and had resulted IN
the injury which always followed a
control OF property by those who had
no real investment in Il. Such control.
Mr.. Wickersham continued. all eN-
perience demonstrated. would not re
the road and to ensure the safe, con-
sentative management necessary 10
meet the requirements Of the pubic
and the proper discharge OF the obltga-
tions imposed upon the carrier by law.
On the contrary, II was almost ineVl-
table that such control would be en-
ployed for purely speculative purposes
and to secure immediate profit to those
In temporary control
II was this public aspect which lent
force to the conviction that "watered
and bonus stock" was one OF the
greatest abuses connected with the
management OF corporations and IL was
this effect upon the fitness OF the car
riers to perform their duties under ma
tional legislation that required and
justified federal supervision and con-
troll Of the subject.
One Limitation.
The attorney general admitted that
the federal government could not con-
fer on n state corporation power to
borrow money and issue obligations
the corporation could vest Il with au-
thority for those purposes
But" he contended, under all the
rules and analogies to which reference
has been made. Congress assuredly may
regulate and restrain the state corpO-
ration in the exercise OF these as well as
prohibit Il from issuing obligations or
stock for any purpose relating TO inter-
state or foreign commerce except In &C
cordance with rules and restrictions
prescribed by Il for the purpose OF pre-
venting the evils above referred to.
an that respect the national govern
ment, having adopted the state corpo-
ration as an agency OF Interstate COM
merce. may subject IL TO the same reg
ulatfons with respect to the means of
raising money for the purpose of carry
ing on such commerce as II could Inn
pose upon a corporation of its own Gre
alton. The end is legitimate. viz. the
regulation OF Interstate commerce; II
Is within the scope OF the constitution
within the Power of Congress.
The means suggested are apprOpri-
ate to correct an evil which has had
In the past a very real effect upon the
ability Of these instrumentalities 20 car
~ on commerce among the states IN
conformity with rules and regulations
coustitutionally established by Con.
gress. and the means are plainly adapt
ed TO that end. On reason and on au-
thority. therefore, such legislation Il
within the scope OF the constitutions
power Of Congress"
II was contended that a state cor.
poration availing OF the powers con
ferred by Congress became thereby sub
ject in these respects, in which Congress
had leEislated. to all the conditions and
limitations imposed by Congress on tn,
exercise Of those powers, as complete.
" as though they were written into The
charter OF such corporation.
Again. the amount OF stock which
carrier corporation might issue ant
the extent OF the obligations which 4
might incur had a direct effect on IN,
determination OF the reasona bleness o,
rates OF interstate transportation.
The enactment OF law regulating
the issue OF stocks and bonds by rail
road companies. Mr.. Wickersham insist
ed. certainly went no further than tn,
acts regulating the ownership and dew
olution OF interests in ships employed n
Interstate or foreign commerce, and IN.
vOlved no principle so new and star
Ting as the acts regulating the hour
OF labor OF employees. the relations be
tween the railroad companies and thel1
employees, or OF the act OF Congress
prohibiting a railroad company carryins
from one state TO another. pursuant q
power vested in II by the state OF Il:
creation. a commodity which II had pro
duced and owns.