Show r A ATTORNEY GENERAL MAKES STRONG SPEECH IN CHICAGO r e ei eV fo i V t k 4 h X A r tic tr I k 2 r 4 r n r 1 1 I I L i e r James A Patten the Chicago plunger whose indictment by the federal deral grand jury in New York on an alleged charge of unlawfully conspiring with about fifty southern cotton spinning corporations to monopolize the raw cot cotton cotton cotton ton industry in this country in violation of the Sherman Sherm n antitrust act caused the action of the House yesterday June 24 4 The Scott WASHINGTON WASH bill to restrict cot cotton cotton cotton ton exchange transactions which do not Involve actual delivery of the Ute commodity was d by b the tho House today IGO to 41 The Tho bill is not expected to pass the tho Senate A 1 filibuster against the bill bUl was instituted In Instituted Instituted shortly after act tho the general de debate debate debate bate on the measure mO suro began In the House today Many lany of oC the New York Tork and Louisiana members were against the bill bm while Illinois members opposed It on account of tho the Chicago markets RAilWAY lAW LA BASIS Of TALK Mr Wickersham Believes That Some Limit Should Be Put Upon the Issuance of Stocks and Bonds by Great Systems DECLARES CONGRESS HAS NECESSARY POWER Experience Has Demonstrated That in Times Past Securities Securities Securities ties Have Been Issued for Sole Sale Benefit of Magnates TIME TO STOP PRACTICE o June tine 24 In ID n a CHICAGO C defense defeDe of the he power Io r of the tb na an national leant government to legislate on the subject of the issuance of or stocks and bonds by b railroad corporations corporation subject to the Interstate commerce net act Attorney General George Geore Wickersham spoke poke for tor an nn hour this thin morning before the Illinois State Stale liar Bar n The Tho for liln hie III talk a the provision In the he new railroad law ID authorising the President Dt to 1 Investigate questions pertaining to 10 the Issuance of stocks ck and bonds by b railroad corporations corporation and the power poirer of Congress to 1 regulate them The enactment of such uth n a RIa law lawhe lawhe he be contended wax was Tn not nearly neall so 0 rad radI I teal n step tep ns RII was wit a the enactment nt of I the permissive net att of or 1800 which gave au auto to n R railroad corporation of one ODe state the right to carry on OD Interstate commerce com coom commerce merce meree or the Interstate commerce net of ot 8 The attorney general pointed out that opposition had brad been beeD matte ti t to every eerT progressive measure of com comm commerce merce m regulation Cut But lie ho declared In closing hIs hs speech the central c tend end line has basone done gone one s op on and toe tae or of t Congress over interstate railroad ral Oad com companies had been exercised roan In an Increasingly comprehensive manner Such progress Is Inseparable from growth The Tho great Arteries of oC communication between different nt parts of the nan try tr and the Instrumentalities In which hleb control their operation can only be bo properly proper regulated In the public Inter Interest oat est by b the central national power pew a II power which ts Is sovereign which Is k 1 ex ex exclusive elusive when exercised and which should be exercised to correct every evil of or a public character which expo experience clones demonstrates demon to be of 01 correction only by b national tion Authorities Cited Numerous legal authorities were cited by the he attorney general geReral from which ho declared It 11 may confidently be bo asserted L that while Congress may itself ornate create corporations corporation for Cor the pur purpose purpose purpose pose of or carrying on Interstate com commerce commerce merce It may also prescribe rules rule I and regulations under which a corporation created by the laws of or a state t may mar conduct such fluch commerce and that tbt when It does so 80 such state corporation might engage only In such commerce in con conformity conformity with the rules and aDd regulation so 10 laid down by Congress and that these rules may ma have reference not notI only to tho the exchange of goods SOoM and I commodities but to the subject the I vehicle and the agent of such com eom commerce commerce merce moreo and their various operations Reference was made by b y Mr Wicker Wickersham sham to the condemnation both by II courts and economists of oC the reckless I of ot stocks and nd bonds by or companies without adeo tt consideration ra tion which he declared had bad come to tobe tobe be generally l regarded as an evil erd oer er certainly II as demoralizing in Hi Ito It effect on tn onI I nr public HA tuI the carriage carrl of 01 lottery OUt ry t i tP from one state atatu to another Taught by b Ii b The Tho twenty years period of ot railroad receiverships and foreclosures testified eloquently he declared td to the practical practical I effect of such unwarranted is r 1 rues Fue of securities upon the ability f j I railroad companies to property properly perform their tr functions as u Instrumentalities oC ut Continued on Page Two GENERAL MAKES A STRONG SPEECH IN CHICAGO Continued Front From Page Pace One OD Interstate commerce while the utter utterance utterance utterance ance of or stock for inadequate or fic fie fictitious tI oua consideration had furnished the opportunity for the most mot irresponsible and speculative s control of or these highway high highway way of commerce and had hall resulted in inthe n nt the t o Injury which always followed follow d a control of or property by those who had hadnet hadn net n real Investment In It at t Such control Mr Wickersham continue all aU experience ex experience nce demonstrated would not be te generally exorcised ed In the tho Interest of or orthe the he road and to ensure the tho safe con conservative conservative management necessary to meet tho the requirements of ot the public and the proper roper discharge of the obliga obligations obligations lons Imposed Im upon tho the carrier by law lawOn lawOn lawOn On the contrary it was almost almo t Inevitable Inevitable Inevitable table that such control would be em employed employed for purely speculative purposes those and to secure and nd to secure Immediate profit to those In n temporary control It was as this public aspect which lent force to the conviction that watered and bonus stock was one ono of ot the greatest abuses connected with the management of ot corporations and it was this his effect upon the fitness of the car carriers viers to perform their duties under na national lonal legislation that required and justified federal supervision and con control control rol of ot the tho subject One Oae Limitation The Tho attorney general admitted that he tho federal government could not con conor confer confor for fer or on a state corporation cor power to borrow money and Issue obligations nor to create creato and issue shares of ot stock Only the tho power which erected the he corporation could vest it with au authority authority for those purposes Ur But nut he contended under all the therul I rules rul s and analogies to which reference has been made Congress assuredly may regulate and restrain tho state corpo corporation corporation I ration In the exercise of ot these as will wen as aa of other corporate powers and may prohibit It from Issuing obligations or stock for any purpose ur relating to Inter Interstate Interstate interstate state or 01 foreign commerce except t In ac accordance accordAnce accordance with rules and restrictions prescribed by It for tho the purpose of ot preventing pre preventing re venting the evils above referred to In that respect res the tho national govern government ment mont having haying adopted ado ted the tho state corpo corporation corporation corporation ration as an agency of ot Interstate com commerce commerce commerce merce may mRY subject It to tho the same reg regulations regulations regulations with respect to the means ot of ol raising money for tor the purpose pUr olle of carry corry carrying ing ng on such commerce as a It could coultS Im urn Impose pose upon a corporation of or Us Its own cre creation creation creation The end Is legitimate viz the regulation of ot Interstate commerce Itis It Ita ItIs Is a within the scope of ot the constitution Within the Power of Congress The Tho means suggested are appropriate ap ro rl ate to correct an evil which line has had hat hadIn hadin In n the past a very real effect upon the ability of these instrumentalities to car carry carry carry ry on commerce among the states stat s in conformity with rules and regulations constitutionally established by Congress Con Congress Congress gress and tho the means are plainly adapt adapted ed to that end On reason and on au an authority therefore such Buch legislation Is within the scope of ot the tho constitutional power Ower of Congress It was contended that a state cor core availing of the powers con conferred conferred forred by Congress thereby sub je Sect t in these the respects In which Congress had iad legislated lo to all the tho conditions condition nn and limitations Imitations imposed by Congress on the exorcise exercise of those powers as complete completely ly 11 as though they the were written Into the tho charter of such corporation cor Again the amount of or stock which a carrier corporation might Issue am and the extent of ot tho obligations which i It might incur had a direct effect on the tho determination of ot the reasonableness o orates of rates of ot Interstate transportation The enactment of a law regulating the Issue l of ot stocks tocks and bonds by rail railroad railroad railroad road companies Mr 11 WIckersham insist insisted ed cd certainly went no further than the acts regulating the ownership and devolution dev devolution of ot Interests In ships employed em loyod in Interstate or foreign commerce and In involved no principle so new now and star as the acts regulating the hours hourI of ot labor of ot the relations between be between between tween the tho railroad companies and their or of ot the act of or Congress prohibiting a railroad company com any carrying from rom one state to another pursuant to t tower power ower vested osted in It by the state of ot Its creation a commodity which It had pro produced produced produced and owns |