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1 President's Proposal for a Federal Railroad System: Is the Plan Constitutional? 1907

handle is hein.beal/ptplflrdsm0001 and id is 1 raw text is: The President's Proposal for A Federal Railroad System. Is the Plan Constitutional? To-day I wish to say a word to you about the first and most important feature of this task, the control of the common carriers doing an inter- state business-a control absolutely vested in the nation, while in so far as the common carriers also transport the mails, it is in my opinion probable that whether their business is or is not interstate, it is to the same extent subject to Federal control under that clause of the Constitution granting to the National Government power to establish post roads, and therefore by necessary implication power to take all action necessary in order to keep them at the highest point of efficiency. There must be vested in the Federal Govern- ment a full power of supervision and control over the railways doing interstate business. It must possess the power to exercise supervision over the future issuance of stocks and bonds, either through a national incorporation (which I should prefer) or in some similar fashion. The Federal Government will thus be able to prevent all over- capitalization in the future; to prevent any man hereafter from plundering others by loading rail- way properties with obligations and pocketing the money instead of spending it in improve- ments. (President Roosevelt's In- dianapolis speech.)