The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-16
THE NORTH RIVER BRIDGE
COMPANY.
Bearing sf ItS Federal 1ncorporstion
on the Railroad Problem.


on the Railroad Problem.
To the EDITOR OF THE SrS-Sir: Az
experimenting the reply made in the
letter OF 'Civitas" In this mornings
edition Of THE SuN to the inquiry lis
It true that Congress has the power to
incorporate a railroad company" the
decision VI the United States Supreme
Court. In the case Of Luxton VS.. NORTH
River Bridge Company U53 L. 8. b25
decided In 1S94), IL instructive.
In that case there was brought in
question the constitutionaitty Of an act
OF Congress which incorporated the
North River Bridge Company and ~
thorized 1t to construct a bridge across
the Hudson River between the States
Of New York and New Jersey. The
act Of Congress was entitled:
An act to incorporate the North Rive,
Bridge Company and to authorize the con
struction Of a bridge and approaches al
New York city across the Hudson River
10 regulate In and over suci
bridge between the States OF Sew YORK.
and New jersey, and to establish suci
bridge a military and post road.
Tho act granted to tho bridge
company the powers and franchises
usually possessed by corporations. in
Guiding the power to issue bonds and
secure tho same by mortgage on its
property and franchises, and provided
that all persons and companies desir-
Ing to use tho bridge might do no
for q reasonable compensation to be
approved by the Interstate Commerce
Commission.
In sustaining the constitutlonality Of
the act the United States Supreme
Court In its opinion said:
The validity OF the oct Of Congress In.
cooperating tho North River Bridge Com.
pany rests upon principles of constitutions
law now established beyond dispute.
The Congress OF the United States. teinG
enpowered by the Constitution to regu.
iato commerce among the several States.
and to pass oil law. necessary or propc;
for carryin. Into execution any OF the pow
ers specifically conferred. may make uee Of
any appropriate means for this end.
From these premises the conclusion ap.
rsprs to be Inevitable that. II
tCongressl may. at its discretion. u-e It's
sovereign powers. directly or through a
corporation created for ,ha; object. 20 con-
struct bridges for the accommodation OF
interstate by land.
The Federal incorporation Of the
Pacific railroads. such as the Union
Pacific. Northern Pacific, Texas and
Pacific, Atlantic and Pacific and
others, IL Of course IA historical fact.
All OF these companies, however. with
the single exception ~ the Texas
ar.l Ip.Attta Ilat,.- -.
longer In operation, and their original
creation by Congress seems 10 have
been IN pursuance rather of its power
to establish military and pos; roads
than of its authority to regulate inter-
state IN In tho case If the
North River Fridge Company the IN
cooperating power OF Congress vas
exercised directly in pursuance of It's
jurisdiction 10 regulate interstate com-
nerce. n express recognition was
made Of the Interstate Commerce
Commission as the exclusive authority
for the regulation Of rates ana charges
10 he made by the company.
In fact. with only Il few changes.
this act Of Congress could very readily
be- Transformed into a general law for
the incorporation and regulation Of
corporations for the purpose of con
structirg. owning. maintaining and
operating railroad highways between
the States 70 he employed a. instru-
mentalities Of !nterstat" commerce and
10 he supervised and regulated by a
centralized Federal authority. That
such a scheme would prove to be bene-
fetal may be well demonstrated by "A
single Illustration.
The Wabash Railroad Company.
Whose reorganization has only recently
been accomplished. Owned lines Of rail-
road located IN the States uf Ohio.
Michigan. Illinois. Indiana. Missouri
and Iowa In each OF these states
there exists a railroad or public utili-
ties commission. many Of which are
vested not only with the power of
supervising and regulating tho meth
dds OF operations of railroad companies
and the tolls and fares to be charged
by them, but also with the power ~
controlling tho mount and character
o: the securities which they may issue.
Many provisions OF these avs are con-
nicting and inconsistent. and confusion,
v v anu HHiISlllldDlc IN npnSr
can he tho only result Of an attempt
10 conform 10 their m~ul;itudinous re-
quirements. In the Wabash case the
solution Of this problem was appar-
entity n of tho most lmpcll.ng con-
sideratlons in determining the form OF
reorganization.
Under n Federal charter such din
culties would disappear, The owner ~
the railroad would owe It's existence
10 "a single sovereign. and the exercise
o. It's corporate powers and franchises
IN the issuance OF Is securities and
the making Of its charges would bc
subject To the contro, and supervision
OF "A single authority. Complete FcI-
eral supremacy over Interstate COM
merce can never ne attained until the
creation of the Observation-Disclosures of
such az we'll AZ their rcEl,-
lation Is assumed 10y tho Federal Cow
eminent. LEX.
New YORK. March II.