The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1931-04-30
RAIL HEAD HITS
j. s. BUSINESS
PROJECTS
Commerce Chamber Hears
Sargent Rap Governments
Attitude Upon Competition

. ATLANTIC CITY, N. j., April
30 G.N.SO .-Government COM
petition with private business was
assaulted by Fred M. Sargent,
president of the Chicago and
Northwestern Railway Company,
in an address before the Chamber
of Commerce Of the United States
here today.
He directed his talk chiefly at
the Governments action toward
the railroads in competition with
inland waterways where, he as
serted, "the Government is in the
transportation business"
/ Cites Constitution
/ Sargent referred to the fear in
the minds of the trainers of the
Constitution of a too highly CEN
tralized and powerful Federal
Government.
He pointed out what he termed
the gradual deviation from the
strict Interpretation of the Con-
Stitution, beginning with the case
case of McCulloch against Mary
land, when Chief Justice Mar
shall laid down the doctrine Of
implied powers through which
the Government had the consti-
tutional right to adopt such prac-
tical measures as we're reasonably
necessary to achieve the ultimate
object" of powers specifically
delegated to it.
Two Amendments
He cited the Tenth Amend
ment, reServing to all the States
all powers not delegated expressly
to the Federal Government nor
prohibited to the States, and the
Fifth Amendment, denying the
Federal Government the right to
deprive citizens of property, life.
or liberty without just compensa-
! ton.
Sargent said:
THE Government has entered
into intensive competition with
other common carriers through
the parcel post. Postmaster
General Brown recently said
that, except on sealed letter
mail, the pOstOffice has the
keeneSt competition. The rail.
roads, express companies, truck
ing companies, steamships and
other common carriers COM
pete with it in the handling of
magazines, circulars, printed
amusement matter and mer-
chandiSe of every kind
Charges UsurpatiOn
"The general is correct. 1t
is perfectly true that the Gov.
eminent, by gradual uSurpatiOn,
has transformed merchandise
of every kind into mail and has
entered into active competition
with its own citizens and in
duStrieS in transporting such
merchandise"
Sargent then declared that
"the next threatened step" is a
FAR more dangerous enlargement
of Federal powers"
IF the Government can man.
ufaCture and distribute cleo
trical energy, as some in Con-
greSs ardently want us to do,
then it can mine and transport
energy in the form of coal,
and sell it in competition with
the corner coal yard.
Naturalization of the power
industry would be merely a
first step toward the nationaIi-
ZatiOn of all industry,
Tells of Powers
eff under the pretext of regu.
lating commerce, the Govern.
ment can use the taxpayers
money to fix a minimum price
for agricultural products, then
certainly it can fix the maxi.
mum prices for the same prod.
uctS, if the emergency ever
arises, in order to relieve urban
distress.
IF Congress can use the tax
payers money to manufacture
fertilizer, then certainly it can
manufacture farm machinery.
If it really does have the power
to do these things, then the
theory Of delegated and limited
powers upon which the United
States became a Union, is com.
pletely washed out.
Why Stop Anywhere
"The door is thrown open to
complete naturalization. Why
stop at farm machinery? Why
not own and operate iron mines,
steel mills, saw milIS-Why stOD