New-York tribune., 1910-06-25

exercise OF these as well as OF other cor
porate powers, and may prohibit 1t from
issuing obligations or stock for any pur-
pose relating to interstate or foreign COM
merce except in accordance with rules and
restrictions prescribed by it for the purpose
of preventing the evils above referred 10.
I'm that respect the national government
having adopted the state corporation as an
agency of interstate commerce. may sub
ject it to the same regulations with respect
to the means Of raising. money for the pur-
pose Of carrying on such commerce as 1t
could impose upon corporation of its own
creation. The end is legitimate, viz, the
regulation of interstate commerce; it is
within the scope of the Constitution.
The means suggested are appropriate to
correct an evil which has had in the past
a very real effect upon the ability of these
instrunlentalities to carry on commerce
among the states in conformity with rules
and regulations constitutionaily established
by Congress. and the means are plainly
adapted to that end On reason and on
authority. therefore. such legislation is
within the scope of the constitutional power
of Congress-
1t was contended that state corpora
ton availing itself of the powers conferred
by Congress became thereby subject in
those respects on which Congress had leg
islated to all the conditions and limitations
imposed by Congress on the exercise of
those powers as completely as though they
were written into the charter of the cor
poTa alton.
Again. the amount of stock which car
rier corporation might issue and the extent
Of the obligations which it might incur had
a direct effect on the determination of the
reasonableness of rates of interstate trans
portation.
The enactment of a law regulating the
issue Of stocks and bonds by railroad COM
panies, Mr. wickersham insisted, certain
ly went no further than the acts regulating
the ownership and devolution of interests
in ships employed in interstate or foreign
commerce and involved no principle so
new and startling as the acts regulating
the hours Of labor of employees, the rela
tons between the railroad companies and
their employees or of the act of Congress
prohibiting a railroad company carrying
from one state to another, pursuant to
power vested in 1t by the state of it's crea-
ton, commodity which it had produced
and owned
Good Expected from New Law.
In an address at the dinner Of the Illinois
Bar Association tonight MIR. Wickersham
expressed the opinion that the new railroad
rate law would remove much of the an
tagonism between shippers and carriers
and tend TO greater stability in railroad
securities. He said in part:
The contest in Congress which resulted
in the enactment of the new law, mas been
between two principles of governmental
regula, ,ion; one practicable, the other lm-
practicable. In the last analysis, govern
mental regulation means the consideration
and determination of questions by Ger
tain number of individuals, and the break
ing point comes when too much is required
of the individuals appointed to the task.
The bill proposed by the government ana
finally enacted empowered the Interstate
Commerce Commission, when in its opin-
ion, upon prlna facie consideration, any
proposed increase in rates change in
classification or regulations seemed to be
unfair or .unwaI aIranted, TO postpone the
actual taking effect of such increase or
change until it had been thoroughly in
vestigated.
The opposing theory proposed to require
the commission TO Investigate every pro-
posed change, and determine in advance
whether or not it should take effect before
il became operative. Considering that up
ward of two hundred thousand schedules
Of changes in rates, etc. are filed every
year it viii be readily perceived that this
system would have absolutely broken down
the commission or required its division into
SO many separate bodies as to make CO.
ordination and continuity of decision I'M
possible.
The administra tons theory seeks to pre-
serve the initiative of the railroad COM
pany but to create a tribunal to which
appeal may be made in case Of threatened
abuse of its power of initiative. so that
investigation can be had before an appaT-
entity unwarranted toll be levied upon the
public The opposing theory would destroy
! all initiative and substitute government
! initiative for that OF the carriers. This
! would be but one step from government
ownership.
Fortunately. AS | think. the theory first
referred to prevailed with Congress, and,
under the new law, the railroad companies
are, as they Should be. left TO carry on
their business on their own initiative. eau
toned by the fact that. in case any pro-
posed action is unduly burdensome TO the
public. there is a tribunal to which appeal
may be had, not simply for restitution. but
for the application of the equitable prin-
ciple OF preventing a threatened wrong
Such powers as these, exercised with
conservative regard to the rights of the
carriers and the public alike, as such great
powers must undoubtedly be exercised
cannot fail, in my opinion, to remove much
of tie feeling Of antagonism between ship
pers and carriers which has existed in the
past and be conducive to greater sta
bility in railroad securities than has hith-
erto obtained.