The commercial. (Union City, Tenn.) 190?-193?, 1910-02-25

; ne says, affect the fundamental leg;
phase.
i While the proposed law would thu
make dangerous curtalment Of Stat
rights, Mr. Garrett believes il woul
also be without constitutional warrant
1t is too far-reaching to be embraces
under the power given Congress to reg
ulate interstate commerce. The Presi
dent argued in support Of bis PROPOSE
ton that the Government had chartere,
| railroads and interstate bridges, and tn
| right had been distinctly affirmed b,
the courts. Mr.. Garrett adds that hi
might also have cited the decision ii
Support of the charter OF the UniteS
States bank, but he says there is vas
difference which all lawyers and mos
laymen must appreciate between the ma
ture sand functions OF an institution
which issues currency, or substitute
for currency for use in exchanging com.
modities and values, and one which
manufactures commodities to be ex-
changed. And he says further, there
is an equal difference between the ma
ture and functions OF a railroad or a
canal or bridge-a public highway con-
structed for the transportation and pas
sage Of persons and things and a trad
ing company engaged in private COM
merce for private gain"
Mr.. Garrett goes into history and
shows that two separate propositions,
submitted respectively by James Madi-
son and Charles Cotesworth Pinkney to
give Congress the power to charter cor
porations were not considered by the
convention that framed the constitu-
ticn. Madison's resolution proposed
to grant this power where the public
good might require it." Later he pre-
scented modified resolution which pro-
posed that it might be granted where
the interest of the United States re-
quired and the legislative provision of
the different States was incompetent !"
Mr. Garrett points out the obvious diff
ference in the meaning which the word
ing of the two resolutions conveys.
This also failed and Mr.. Garrett cites
the debate over the proposition in the
convention and subsequent debates in
Congress in which Mr.. Madison en-
gagged to show that it was never con-
that the Federal power to
charter general trade corporations
should be granted. Mr.. Garrett shows
a strong opposition to corporations shat
existed in the early history of the coun-
try that even in New York the power
full genius OF Hamilton, reinforced by
the sagacity Of Livingston, could not
overcome" and asks, is it conceivable |
hat the people of the Southern States
ever intended to delegate to the new
government a power which they had
scarcely exercised through their own
State governments-th charter Of trad
ng companies?"
Reviewing the Federal charter grant
4
ID the Union Pacific Railroad Company
n 1862, Mr.. Garrett takes pains to
how that the charter was granted only
or the territories, provision being made
or connection with railroads having
tate charters and adds: AS the bill II
was proposed, it was to au-
horize the construction in the States
I Kansas and California, but even at
hat late hour, amid the awful throes
I the war Of secession, when the ex-
ression States rights" was about the
1ost unpleasant that could fall upon
ne ears OF statesmen then controlling
le destinies OF the Union, the Con-
ress would not invade the States to
uild even an interstate railway, not
the military and postal
ecessities, and under the Lead Of Sena-
II TrumbulI, of Illinois, the bill was
nended so as to confine the authority II
the corporation being created to the l
rritory of the United States, out of /.
hich no States had been created.
The debates on the bills creating rail-
ad companies as Federal corporations, 4
r. Garrett shows, were bottomed
holly on the post-roads clause, the
ilitary necessities and the right of the
oyernment to grant concessions over
own territory, over which it has alb
lutte sovereignty for all purposes. =
he interstate commerce clause which
e President makes basis for his
oposals, Mr.. Garrett shows, was
arcely referred to in these debates.
Mr.. Garrett contends that the Fed |
n Government has never created =
deral corporation to do anything, to
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