New-York tribune., 1910-06-25
W|CKERSHAM ON
CONTROL OF STOCKS
Attorney General Defends Pro-
vision Made in New Rail-
road Rate Law.
FEDERAL POWER ASSERTED
Congress, He Contends, Has
Ample Authority to Regulate
Issues of Securities by
State Corporations.


Chicago. June "a vigorous defence Of
the power of the national government TO
iegislate on the issuance of stocks and
bonds by railroad corporations, subject to
she interstate commerce act, was made
by Attorney General George w Wicker
sham this morning before the Illinois State
Bar Association. The basis for his address
WAS the provision in the new railroad law
authorizing the President to appoint COM
mission 10 investigate questions pertaining
10 the Issuance OF stocks and bonds by rail-
road corporations, and the power of Con-
sress TO regulate them.
The enactment of such q law, he con-
tended. was not nearly SO radical a step as
WAS the enactment OF the perInissive act of
lsss. which gave TO a railroad corporation
cT one state the right to carry on inter
state commerce under the interstate COM
merce act Of 1887. The Attorney General
pointed out that opposition had been made
70 every progressive measure of commerce
regulation.
But he declared in closing his speech,
~she centralizing tendency has gone stead
fly on. and The control of Congress over
interstate railroad companies has been ex-
ercised in Increasingly comprehensive
manner Such sprogress is inseparable from
growth The great arteries Of communica-
tion between different parts of the country
end the instrumentalities which control
their operation can be properly regulated
in the public interest only by the central
national power-a power which is SOW
ereign. which is exclusive when exercised,
and which should be exercised TO correct
every evil Of a public character which ex-
perience demonstrates TO be susceptible Of
correction only by national legislation
Many Authorities Cited.
Numerous legal authorities were cited by
The Attorney General from which, he de-
clsred, It may confidently be asserted that,
while Congress may itself create corpora
tons for the purpose Of carrying on inter
EfBte commerce. il may also prescribe rules
End regulations under which a corporation
created by the laws of state may con-
duct such commerce. and that when it does
so such state corporation might engage
only in such commerce in conformity with
the rules and regulations so laid down by
Congress- and that these rules may have
reference not only 10 the exchange of goods
and commodities. but to the subject, the
vehicle and the agent Of such commerce
and their various operations.
Mr. Wickersham referred TO the con-
demnaticn both by courts and economists.
Of the reckless issue of stocks and bonds
by railroad companies without adequate
consideration. This, he declared had come
TO be generally regarded as an evil GER
tainIy as demoraliZing in its effect on the
public ar the carriage of lottery tickets
from one state TO another.
When the subject involved affects COM
ir7erce among the states. MI Wickershan
said. the power Of control for the public
- asc-a.3 In
Congress. This power extends not only to
restriction, fIut if in the wisdom of Con-
Sress il seems necessary, to prohibitive
measures in eordeT 10 enforce the rules laid
down by Congress respecting the conduct
Cf inteTsta*e-commerce.
Farreaching Power of Congress.
That the power TO regulate commerce
among the states involves the power to
prohibit such commerce when, in the Opin-
ion Of Congress. such prohibition is essen
tial TO the public welfare, he added. was
recognized and established by the United
States Supreme Court in the lottery cases
Having asserted that the carrying of lot
terry tickets from state TO state constitutes
interstate commerce. and that the regula-
ton of such commerce is within the power
of Congress under the Constitution, the
court, speaking by Justice Harlan. said:
Are we prepared to say that q provision
which as, in effect, q prohibition of the
carriage of such articles from state TO
state is not a fit or appropriate mode for
the regulation OF that particular KIND OF
If a state. when considering legislation
for the suppression OF lotteries within its
own limits. may properly take INTO view
the evils that inhere IN the raising OF
money in that mode. why may not Con-
gress. invested with the power TO regulate
commerce among the several states, pro-
vide that such commerce shall not be pol
luted by The carrying OF lottery tickets
from one state TO another In this con
nection il must not be forgotten that the
polSer of Congress to regulate commerce
among the states is plenary. is complete
In itself and is subject 10 no limitations
except such as may be found in the Con
stitution. What provision in that instru-
ercise Of the power gTanted2 What clause
can De cited which. in any degree coun-
-renances the suggestion that one may. OF
right carry or cause 10 De carried IRON
one state 10 another that which VIII harnl
the public morals? We cannot think OF
any clause Of that instrument that could
Y1osslbIv be invoked by those who assert
Iheir right to send lottery tickets from
state 10 state. except the one providing
that no person shall be deprived Of his
liberty without due process OF law.
II viii not be said TO be part OF any
ones liberty as recognized by the supreme
law Of the land. that he shall be allowed
TO introduce into commerce among the
states an element that will be confessedly
Injurious 20 the public morals