The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-06-24

does so, such state corporation might
engage only in such commerce in con-
formity with the rules and regulations
so laid down by congress; and that
these rules may have reference not
only to the exchange of goods and COM
modities, but to the subject. the vehicle
and the agent of such commerce, and
their various operations.
Reference was made by Mr.. Wicker
sham to the condemnation both by
courts and economists, of the reckless
issue of stocks and bonds by railroad
companies without adequate consider
alton, which. he declared, had come to
be generally regarded as an evil. GER
tainly as demoralizing in its effect on
the public as the carriage of lottery
tickets from one state to another.
The twenty years period of railroad
ireceiverships and foreclosures. testi-
fled eloquently, he declared, to the
practical effect Of such unwarranted
issues of securities upon the ability
of railroad companies to properly per-
form their functions as instrumental
tiles of interstate commerce; while
the utterance of stock for inadequate
or fictitious consideration had furnish
ed the opportunity for the most irres-
Iponsible and speculative control of
! these highways of commerce and had
resulted in the injury which always
followed control of property by those
who had no real investment in it.
Such control. Mr.. Wickersham con.
|tinued, all experience demonstrated
would not be generally exercised in the
Interest of the road and to ensure the
safe conservative management neoes-
|sary to meet the requirements of the
public and the proper discharge of the
obligations imposed upon the carrier
by law On the contrary 1t was al
most Inevitable that such control
would be employed for purely specula-
tive purposes and to secure immediate
profit to those in temporary control
II was this public aspect which lent
force to the conviction that watered
and bonus stock was one of the
greatest aouses connected with the
management of corporations and it was
tins effect upon the fitness of the car
s.ieis to perform their duties under ma
tional legislation that required and
justified federal supervision ana CON
troll Of the subject
The attorney general admitted that
the federal government could not con.
fer on state corporation power to
borrow money and issue obligations
therefor, nor to create and issue shares
of stock. Only the power which, erect.
ed the corporation could vest it with
authority for these purposes.
But he contendcd. under all the
rules and analogies, to which refer
enee has been made, congress assured
ly may regulate and restrain the state
corporation in the exercise of these as
well as Of other corporate powers, and
may prohibit it from issuing oblIga-
tons or stock for any purpose relating
to interstate or foreign commerce ex-
cept in accordance with rules and re-
strietions prescribed by il for the pur.
pose of preventing the evils above re-
ferred to.
"In that respect the national govern
ment having adopted the state corpora
ton as an agency of interstate com
merce. may subject it to the same reg
ulations with respect to the means Of
raising money for the purpose Of carry
| ing on such commerce as it could I'M
pose upon a corporation of its own
creation The end is legitimate. vizy
the regulation Of interstate commerce.
it IS within the scope Of the constitu-
tion.
1 ~The means suggested are appro-
pirate to correct an evil which has had
Hin the past d very real effect upon tie