Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1910-03-14

CHICAGO, Feb. 17.-Federal con.
troll Of corporations. Is necessary to
the commercial preservation Of the
country, declared Charles Nagel, Sec.
rotary Of Commerce and Labor, Of the
United. States, In an address before
the Industrial Club here tonight.
! As to the power Of the national gov.
eminent to authorize the organisa.
tion Of federal corporations, Mr.. Ma
gel said there could be no question.
The existing system Of clashing state
! laws-"a system on all sides at war
| with itself'--he regarded % intoier.
able. and he assured his hearers that
the consequences Of q federal corpor.
alton 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 opinl
Ion of the Secretary. could not be
considered as! an attempt to en-.
croach upon, state authority, but as a
determination to employ old author.
ity for the solution Of new problems"
4 change Of altitude regarding the
relation Of national to state authority
he believed. had come oyer the ,coup.
try with the development Of problems
too big for the state Individually to
meet. ~ 81.
Among the more important prob.
lens. said Secretary Nagel. appears
to be the question whether Or not the
National Government may and should
authorize and regulate the ofganlsa
tion and conduct Of federal corpora
tons. ohly few years ago the bare
suggestion Of such an idea filled the
public with dismay. The authority
was denied and the policy was quss;
toned. Today the, irreconcllable con.
hlcts to which ordinary BUSINESS or.
ganisations are suoject in our states
have forced a general recognition
that something must be done to re.
lieve the situation. "
THE idea il not limited to any par,
ttcular locality Of our country or to
any special class. From all parts,
city and country, come the sugges-
lions that some relief from these
lines must be worked out. The prop
dsition has now been squarely put be-
fore the country. The President Of
the United States has made q dis.
unct Recommendation in q message.
calling attention to the needs, and
submitting for consideration q form
y which legislators and constituents
may give theif attention" ~ ~, !, -, :
In. considering the proposition. Soc.
ffetafy Nigel stated, that thrsS points
must be determined: First, the ques.
tti66~of the governments authority
second, the conditions which msks
advisable such Legislation, and third,
the conceausnoS 81 such ri israhc1s.
1T has sesmdd to me- from the very
START sSid the Secretary Cd the quSss
tl9n m authority, that no one could
subject tbs question tcEa 'tkoGshtfuf
consideration without arriving at the
conclusion that the Federal Congress
must undoubtedly have the author
lily.
From the earliest case IN which
the exclusive rights Of Congress TO
regulate interstate c6mmerce xaS
considered, It was made apparent
that the authority to provide for, the
organization Of business .corpqratlpps
was necessary incident to the exer.
else Of that authority, and again and
again the Supreme Court has said
that Congress- has this power ~,
The charge against the states that
they hadlAslscted their, ppportphilies
in dealing with the, corporations, Sec;
Rotary lNssei Said he did hot believe
but he attributed the failure Of thu
states to- cope with the commafciSi
conditions. to inability rather than to
negligence. ~, \, -, y
"The plain and .indisputabis fact
To-" he said, that the, commerce ,pk
these orgaDixstl0ns with which we
ere really Concerned hisJ outsrSkAn
both the boundaries ana the, authcrity,
Of any particular state. IA SctkSf
words, the Individual Stats 10 ,vaixly
struggling to control conditions that
extend beyond 1t with respect to ter
rilofy u Web al %. Of al aihu' lid mod,
ern demand for congressional acucnI
is nothing but the plain. practical call
cor an authority that;is equal to ths
occasion with which It has to deal.
Realizing that we have national
commerce. We are naturally calling
upon national authority to control III
and to protect H." ,.,ss &c., y IN
Secretary 'Nsgsi ireeitsd he devels
opnent Of business enterprises in the
country, sshoYipg the, gradual, growth
to the big corporation and the al.
tempts ~ tie ststes ctol' isklslatt and
the. lfssuitstt trouble because of the
varying laws, and he pointed particu,
larry to ons result Of conditions al
they existed. IL. f,.t..'r,}3rsir1 ~ nj
MOT only 10 commerce subjected TO
Inconsistent. conflicting and often de-
structive regulation" he said, "but
the inevitable effect b Such activity Il
to Greats falss Competition between
the ststea, al, the expense OF that
commerce. The state OF lowest
forces the hand NJ ail ths