The Washington times., 1916-01-12
CRIMINAL LAWS NOT EFFECTIVE.


He is convinced that criminal laws
will never effectively control the man
agement of corporations; and OF th'S
he finds convincing proof in the &C"
quittal of the majority OF the Ne"
Haven directors.
While he was still a member of the
Interstate Commission Judge Prouty nad
charge of its investigation OF the ne"
Haven system. He devoted many
months to il, and Is probably as Ia
miliar with the manibulations that
brought that system into its troubles
as any man outside the management
that controlled the property at that time.
His conclusions from the investigation
were largely influential in determin-
ing that there should be criminal prose-
cution by the Federal authorities; II
was his opinion that, II any experience
in corporate management ever 1usn-
fed such a proceeding, that OF the
New Haven did.
Nevertheless, Judge Prouty was not
surprised at the failure OF the prose
cution. He does not believe that criin'-
nal laws can be written that VIII ac-
complish the purpose OF leSuiatlhg cti
porate activities by estaDnshihe proii
billions and fixing penalties. .,o,,
regulation" he said todey one may
be called the judicial, the other the ad-
ministrative. The judicial system WHITES M :,
laws prohibiting the things wnlcn tras T
| not be done and fixing penalties. !he
| adn,inistrative system prescribes the
way in which a given thing may ne pe
done, and says in substance; II you ,his
| going to do this, you shail 90 II ..' ",
way: II you don't do II this way ~"
| shall not do il at ALL
Law Can't Cover All.
| "The system of judicial regulation
| a,,.,nn,s TO enumeratc what are re-
rarded as the vicious ways or holnt'
,he thing. and TO prohibit them. inc
trouble with it. as shown oy eHperi
cnce. is that no legislation can pos
| sibly be wise enough to en"mera''
all the possible Vicious methods. iou
might rrohibit ell tn" proceedlnSs oS
| which Jay Gould and Jim rishe e,
| ploitcd railroad properties; All tnt
nh;actionahlc plans of commodor.
Vanderbilt and l.. II. Hartman pu
no sooner had you listed up ana ioi
hidden all the familiar meth"us Ina
some new genius would coIhc ,
tvith n new way of doing the thinS
and YOU would have ROCK lslah'
ar a 'FI !scc or New Haven case
the old thing done in new way no
prohibited by your law Ana II all
the law had been amended 10 PtT
hibit repetition OF the offense IN I'M
rorm YOU would find another manipu
lator inventing still another way
You cant make the laws keep vi
/ With the inventive genius or me peo
. pie who want TO do as theY please.
Even when you get law thal az,
; niles to a particular case, the criilI
l nal features OF the law cannot De en-
! forced. The American peopie aon
I like to be regulated: they resent IN
reference with them IN mahaS N,s; n'
what they consider their owh pus,
ness, Jurics do not convict men "he'
; thew arc going to be locked up unoe
tEis kind of laws: there IS an ins.'o t =
tive resentment against that sort
interference with what are cohsiuei
cd Individual rights.
History Proves Failure.
"The whole history of corporatlo
regulation demonstrates that thls lu
dicial proceeding. of laying dow
prohibitions and then. after the fac
i, irving to punish Violations of then
is a failure. More than forty Sest
ago the States undertook such et
e forts Kentucky had a pioneer LAY
, nroyidinG penalties for 'eNtortion !
= railway rates, and imposing penaltie
on officers is we'll as on the corpora
ton. 1t and like laws proved incl
fective.
Z I'm the regulation of the railroad
we are halfway between the judiclf
', and the administrative system.
4 have practically taken away from IN
e railroads the power to make thel
V | own rates. but we have not given ths
:, mower to any governmental authorit;
: For many years ! was opposed
: Government making OF rates.
c thought the railroads should be pei
e ject to some review by a higher a,
:, thority in behalf of the public. BIZ
a Ave or six years ago I became cor
Q vinced that l had been wrong, an
= that the Government ought to max
| all the rates. 1t would not be an
such terrific task as has been imat
ined and represented. If the pow'
were given to the Interstate Con
mission now, 1t would require mere
n a gradual readjustment of the sche'
ules, which would not De revolution
AIRY in its effects.
+, Conflict Would Cease.
. with that power once lodged in Il
4 commission. there would be a cradu
G cessation of conflict between the Fee
8 cral and the State authorities. We ha'
= seen. in the matter of safety appliance
y an illustration of this. State may !
a unire for example. that all loComoIiv
J. shall have a particular sort of hea
= Iignt: and It can enforce that rul
+, within its own borders, so long as Il
! Federal authority to regulate headliEh
l. ia not exercised. But as soon as a co
70 nicting rule is made by the Federal a
" thoritv it must be supreme. because
- Locomotive Is an interstate affair;
must be able to cross State lines. al
the power over interstate matters
Federal whenever it Is exercised =,
same thing would be true of rates.
u the Government made all the intersta
rates there would be an adjustment
h. the intrastate rates to the FEEDER
u ones. that would presently largely
1e away with the conflicts OF iurisdicti
Is that now are constantly arising"
Judg" Proutys opinions about &C
Id ernment regulation OF corporate
or have achieved a new concern I" |
ry public by reason Of his recent addr'
A. before the Pam American SCi"nti
Cougress. lie pointed oHt that II. "