The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-26
Mr.. xIckershan,s latest Effort.

Mr.. WickeBsham's Latest Effort.
Mr.. w1CKERsHAM's arguments for
Federal Incorporation have the virtue
Of extreme elasticity.
The Supreme Court has decided that
the carrying Of lottery tickets from
State to State constitutes Interstate
commerce and Is within the power OF
Congress 10 regulate or prohibit, hut
says the Attorhey-General, the reckless
issue Of stocks and bonds by railroad
companies without adequate cnnsidera-
ton has come 10 he generally regarded
n an evil certainly as demoralizing in is
effect on tine public a. interstate traffic
in lottery tirkets
Therefore Congress has constitutional
power to regulate or prohibit issues OF
securities by State corporations.
II Is true. Mr.. WICKERsHAM admits
that ths Federal Government cannot
confer on a state corporation the power
% issue stock or sell bonds That can
be done only nv the power which created
the corporation, namely the state But,
SAYS the Attoney-General having
adopted the State corporation as an
agency of interstate commerce Con
gress NAV subject II n the same regu-
lations and restrictions with respect To
raising money that Il would impose upon
a Fcderallv created corporation. For
the evil which Federal control II the
State corporation securities would cor
rect is ar evil which has had in the past
a very real effect upon the ability oi
these instrImentalitiest 10 carry on CON-
merCe among the States in conformity
with rules and regulations constitu-
tiOnally established by congress.
Therefore the full supervision and
control II the finances Of State corpo-
rations doing interstate commerce j.
within the scope Of the constitutional
power Of Congress.
Again, says the Acknowledgement. the
quantity and quality " tho obligations
incurred by carrier corporation created
by State have direct effect on the
determination ~ the reasonablcness Of
rates m Interstate commerce.
Therefore. ~ % j. Federal function
a. determine The rpasonablcnc~z Of rates.
therr is Federal power TO regulate the
financial operations on which the rates
morc ar less directly depend.
According 10 the caoutchouc logic
Of the Attoney-General a. presented
above. b h not clear that 1guiii1g affect
ing the ability 81 the cpU0ratiou adopted
by the Federal Government a. an IN
ftrumentaI.ty 81 interstate commerce
l. a matter " Federal concern. For
example:
The arrangements and r.olcIng NJ IN,
railway terminal. whlch although dis
tinCtly within state 10 an important
factor in the State corporations efici.
ency as Federal instrumcnial.ry.
The cnlor of the uniform of the rail-
way employee. which. according 10 ia
attractiveness 20 the travelling public.
may have a direct relation 10 the in.
come Of the railroad and therefore 'n
the rcasonahlrncs- Of rates
The morals and personal habits ~
the director ~ the State corporations
whether addicted 20 alcohol. tobacco 81
opium whether too fond 81 golf. varh,
ing and other diversions from duty "a,
aheotins las vote on the is-ue of stock
" the borrowing of money by the Stat,
corporation
No one would venture ~ try 10 reduc,
Mr.. WICKFRSIi propositions 10 ah.
snrdiiv. but if We follow ms mmino,l.
reasoning the things mentioned ahov,
anda thousand other thing undrpumec
81 save bv the rhprDughgoing -D,iaisr
fall easily and gracefully within M.
sphere of Fedora! power H- argu
ment, II good -s-Hn- tp b" a simple vet
mastery demonstration of the oon.ttu
tiOnal right ~ Congress ~ enter th,
Offices of every State corporation Whiol
happens to b. engaged Incidentally IL
interstate commerce and tp admuisfo
the business of that State corporation
fully and o. the last and least detail.