The Washington times., 1910-05-03
GAS COMPANY MOVES BY IN
DIRECTION.

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the Washington Gas Monopoly, Mr.
Richard h Goldsborough. told the
House District Committee last night
that the Coudrey resolution IS uncon-
stitutionaL Mr.. Goldsborough's srgII-
ment Is calculated deeply TO impress
anybody who Is looking for a Pretext
to serve the Gas Monopoly. The con
stitutional argument Is always pro
found, no matter how entirely unre-
lated to the case in hand. It has lat
terly become the resort Of all torylsm
IN its Iast-ditch opposition to progress.
We can only hope that the members
Of the committee, IN whose hands the
matter now rests. viii recall that the
antitrust law, the railroad regulation
measures, the legislation under which
the union was saved-evsrything i'm
portant to the people from the begin
nings OF constitutional government
we're all. in their time, attacked and
branded as utterly Unconstitutional
But NJ. GoIdsborough Is particularly
careless OF his own repUte as a lawyer,
when he assumes that this Coudrey re-
oI17tion is without the constitutional
power Of Congress to IegisIate- This
resolution Is an expression IN specific
terms Of the reserve power Of Congress
over It's own creature Congress charter
ed the Washington Gas Light Company,
and bv the terms Of the charter sPecif-
eauv reserved control over the capital
zation. There can be no serious cues
ton on this point
The company has never issued CAPT
taEzation without first getting consent
Of Congress It cannot do so now But
i has developed what 1t believes Is a
/ IegaI method OF circumventing the con
troll OF Congress; Of accomplishing by
/ indirection that which, II done by direc-
ton would unquestionably be Illegal
/ The Coudrey resolution is a measure
to plug UP a Ioophole through which
the Gas monopoly designs TO emit some
/ millions Of watered securities That Is
/ all there is to II. Mr.. Hazelton, IN his
argument last night, effectually and
completely answered the constitutional
argument which Mr.. Goldsborough had
( presented against the resolution. We
! have so much respect for the legal acu-
men Of Nh. GoldborOugh that We must
respectfully decline to believe that he
takes his own argument seriously, or
that he would be willing to have his
own reputation as lawyer stand or
I fall bv such a remarkable statement Of
the limitations Of the legislative power
OF Congress
/ II Air. GoldsboTough IS right and Con
gress IS stopped from interfering with
/ the financial exploitation Of corpora
ton which Congress itself chartered and
over whose finances 1t specifically re-
served the most complete powers, then
It Is of course. obvious that Congress
has no possible right to interfere with
the financial methods Of q corporation
chartered by a State and without the
/ specific control of Congress. That would
/ imply that our Attorney General and
IaU the constitutional authorities who
have been working on projects 70 con-
troll the capitalization Of certain classes
OF corporations. are entirely mistaken,
and trying to do that which Congress
/ has no power TO do. We decline to &C
icept 8Ir. Goldsborough's view as against
the now universally recognized view
that Congress has power to control II
such matters.
Ever If It were conceded that Con
/ gress may not interfere with the cap
.italization of a New Jersey OF Kentucky
/ corporation, 1t Is still certain that Con
gress may control the capitalization
Of a corporation to which Con
gress gave life, and which it originally
restricted to the terms which it NIGH
impose, as TO capitalization
The case before the District Commit
tee Is perfectly simple. IF it wants t,
stop the issue OF some s5,OOO,00O Of blu,
sky securities as a charge against ga.
consumers Of Washington, 1t VIII pas
the Coudrey resolution. If II feel
that the Gas monopoly, plus the Wash
iington Post, plus the political pull o
the Cincinnati Enquirer, and the othe
- ramifcations OF the Mclean power, ar
? entitled TO consideration even to the ex
e tent OF imposing upon this public al
J outrage that would not be permitte,