THE MORXIXG OKEGOXIAN. TTJESDAT, JUNE 25, 1907.
FINDS LIMITS TO
FEDERAL POWER
Knox Says Manufactures Can
not Be Controlled as
Commerce.
MUCH GOOD ACCOMPLISHED
Power of Government to Regulate
Commerce Established by Suits
and New Railroad Laws All
Valid," Says Senator
NEW HAVEN", Conn.. June 24. The
orator of the day at the senior exercises
In the law school of Yale University this
afternoon was United States Senator
Philander C Knox, of Pennsylvania, and
his subject. was "The Development of the
Federal Power to Regulate Commerce."
There are no questions before the Ameri
can people today of greater importance than
those relating to the Federal control over
commerce. Nothing la of more consequence
in our governmental affairs than an accur
ate understanding of the scope of the Na
tional and State powers In respect to com
merce and the activities related to com
merce, for no effective regulation la pos
sible In either sovereignty If the power of
the one could be usurped or obstructed by
the other. This will be understood and
conceded, except by those who appear to
think the Federal Government can consti
tutionally accomplish everything that seems
good for the people and are constantly
raising expectations upon thi Una which
cannot possibly be fulfilled.
The fact that the state governments are
supreme In state affairs, and the National
Government supreme in National affairs
does not result in the deduction that there
are any affairs which may escape Govern
ment control.
"Where States Hare Failed.
The necessity to exercise the National
power over commerce arises largely out of
the failure of the states to regulate wisely
great corporations created by and under
the dominion of the states and engaged In
Interstate commerce. That failure has led
to well-known abuses which affect Inter
state commerce, and thereby created the
necessity for the exercise of Federal regu
lation to prevent the abuse.
The necessity for the exercise of Federal
regulation almost always springs from
ca-uses the states could have prevented.
Mr. Knox then referred to the evils
of monopoly and railroad discrimina
tion, which made Government regula
tion necessary.
What lias Been Accomplished.
Mr. Knox then grave a brief statement
of how this situation was dealt with by
the National Government, saying:
First, the scope of existing laws was tested
through a series of suits. These suits had
for their main purpose to determine the ef
fecttvnes of existing statutes to reach new
types of comblnatioa to restrain the free-play
of the law of competition, and new and subtle
discriminatory devices which had sprung from
fertile and experienced minds instructed In
the Interpretations the courts had put upon
the existing laws.
The purpose for which this litigation was
undertaken were all accomplished. - The
completeness of the Federal power over com
merce was reaffirmed sad declared to extend
among other things to the holding, company.
Th m device, which had been successfully
employed to establish under one control the
leading productive Industries of the country
was declared Illegal when utilised to absorb
competing systems of interstate railroads, and
thereby we escaped a danger to our com
merce, our Oovernraent and our very liberties,
the magnitude of which can scarcely be
grasped.
It was likewise Judicially determined that
a combination between a railroad company
and a shipper, to grant the latter an unlaw
ful rebate which results In the establishing
of a monopoly. Is a violation of the Sherman
act, and that a court of equity might re
strain the guilty parties at the suit of the
Attorney-General of the United States, aa well
under that act, aa under the general juris
diction in equity. Of almost equal Impor
tance was the decision tha the operations of
a monopolistic combination wlthm a state
msy be so connected with those between the
states as & bring the whole under the regu
lative power of Congress.
v la us Remedy Defects.
Mr. Knox then stated the principles of
1 iw established by the Elkins act, the
rate law and the law to expedite defla
tions lil railroad cases. He continued:
Al! these laws have been declared consti
tutional, except the railroad rate act. and
as to that act, not yet passed upon by the
courts, it Is believed by the great weight of
lgal opinion to be constitutional In respect
t the power to fix reasonable rates and prac
tices. Xo Panacea for All Ills.
The public satisfaction resulting from the
enactment and the enforcement of there stat
utes regulating commerce has induced some
persons to contend that the Congressional
power to regulate commerce is a panacea for
many other public evils, and It la proposed
to utilize that power to accomplish ends not
wtthtn the National Jurisdiction, and having
no relation to the subject of the power.
"The power to regulate Is the power to pre
scribe the rule by which commerce Is to be
governed " These are the words of Chief
Justice Marshall in Gibbons vs. Ogden.
Over this subject of commerce among the
states and with foreign nations and Its In
strumentalities, the power of Congress is
plenary. It may be exercised In the most
general or minute way. For this purpose.
CongTess possesses all powers which exiBted
In the states before the adoption of the Na
tional constitution, and its power when the
subject Is National Is or may be made con
clusive. The constitution, laws, corporations
and citizens of the states are subject to this
paramount authority. Congress can regulate
anything, everything, any and every person,
natural or artificial, in. the sense that It can
prohibit or prevent any use or act that will
interfere with Congressional control over In
terstate commerce, or that will Injuriously af
fect such commerce. Congress may likewise
prevent the arteries of Interstate commerce
from being employed, as conduits for articles
hurtful to the public health, safety or morals,
and may remove obstructions from the high
ways of commerce, whether they be physical
or economic, whether they may be sandbars,
mob or monopolies.
Restrictions on Commerce.
The power of Congress may be exercised
by prohibition and by prescription.
The new proposition Is this: Congress
has the power to regulate commerce. In
cluding Its instrumentalities, and likewise
power to regulate the persons by whom ar
ticles of commerce are produced in re
pert to matters disconnected with com
merce. Thin addition to the rule finds expression
In the .suggestion to prohibit the Inter
state tran portation of innocuous articles
law fully made or produced in a state for
reasons not affectln interstate commerce.
let us now coi slder whether the regula
tion of the business of producing articles
which may In whole or in part go Into In
terstate commerce by denying to the
owner the privilege of interstate commerce
for reasons not affecting such commerce. Is
a regulation of commerce. In other words.
Is the mere production of goods commerce 7
If It ts not. then can Congress regulate
such production within a state under the
constitutional power to regulate Interstate
commerce-?
It would be difficult to overstate the
Importance and seriousness of the ques
tion thus presented, as upon Its ultimate
authoritative determination depends, It
may be. the autonomy of the states In
substantially all matters of Internal po
lice. It Is scarcely worth while to discuss the
proposition that production Is not com
merce. Mr. Knox then quoted a decision of Jus
tice Lamar to the effect that manufacture
comes within the Jurisdiction of th
states and cannot be regulated as com
merce by Congress. He continued:
But it Is claimed that as the power to
regulate commerce is absolute, complete
and mainly exclusive In Congress, the right
to forbid the shipment In interstate trade
of any kind of goods, for any reason, comes
within that power. That is to say, under
the guise of a commercial regulation, not
necessary for the promotion or protection
of commerce, a producing regulation, which
Congress could not have enacted, may be
enforced; or. In other words. Congress can
deny a person the right to engage In
lntei state commerce for doing that which
Congress cannot prohibit him from doing.
But, as we have seen. Congress cannot
regulate production, and Chief Justice
Marshall said in McCulloch vs. Maryland:
"Should Congress under the pretext of
executing Its powers pass laws for the ac
complishment of objects not entrusted to
the Government, it would become the pain
ful duty of this tribunal, should a case
requiring such a decision come before it,
to say that such an act was not the law of
the Land."
In my Judgment, the power to regulate
commerce between the States does not carrry
with It the power to prohibit commerce, unless
the prohibition has for Its purpose the facili
tation, safety or protection of commercial
Inteicourse, or the accomplishment of some
other National purpose.
The power to regulate interstate commerce
does not extend to the laying of an arbi
trary embargo upon the lawfully produced,
harmless products of a state, nor to the right
to defeat the policy of. a state as to Its own
Internal affairs.
I concede that the National power to regu
late Interstate commerce carries with it the
right to prohibit commerce in order to secure
equality of commercial right, or to prevent
restraint of or interference with commerce,
but not to prohibit the shipment of the in
nocuous products of producers within a state
who are pursuing a course sanctioned by the
laws of the state and in no wise In Itself
Interfering with interstate cdmmerce. If pro
hibition of interstate trade is within the arbi
trary power of Congress. It might be exer
cised so as to exclude the products of par
ticular states or sections of the country. Con
gress then might prohibit the shipment of
cotton or wheat to promote the Interests of
wool or corn.
There is no authorltr for any such propo
sition. The power of prohibition has never
been sustained except aa against articles nox
ious or dangerous In themselves. It is not
possible to find even a suggestion that in re
spect to natural products which are prime
necessities. Congress can prohibit commerce
In them between the states In order to en
force Its conception of what would be a wise
police regulation of a state.
Purpose Must Be Constitutional.
The sum of the matter then Is this: For
the purpose of protecting commerce. Con
gress may close its channels to those who
are Injuriously affecting It, but for the pur-
re of enforcing a more enlightened policy
respect to matters not within the Jurisdic
tion of Congress. It has no such power.
Congress may employ such means as It
chooses to accomplish that which ts within
its power. But the end to be accomplished
must be within the scope of Its constitutional
powers. The legislative discretion extends to
the means and not to the ends to be accom
plished by use of the means.
The preservation of our constitution Is not
committed to the Federsl Judiciary alone. It
Is the oath-bound obligation of every legis
lative. Judicial and executive officer of the
States and Nation, and Is the highest duty
of private citizenship. The constitution Is not
to perish at the hands of the impassioned
phraee-maker. and its defenders should not
he deterred by mistaken or prejudiced clamor
from performing their obligation to preserve
and defend it.
The power of the Federal Government can
not be increased except by new grants of
power through amendment of the constitution.
The efficiency, however, of the Federal Gov
ernment will progressively increase through
the application of existing Federal power to
the growing complexities of social and com
mercial conditions.
In the graduate class, of the three
honors two are won by Filipinos. Jose
Eacalar, of Pa manga, takes a magna cum
laude honor and Mariano Honorade de
Joy a, of Bolamsas, takes an honor cum
laude.
DEFENSE UNWRITTEN LAW
Rapid Progress in Trial of Ex-Judge
Loving in Virginia.
HOUSTON, Va., June 24. The trial of
ex-Judge W. G. Loving for the murder of
young Theodore Estes, a sequel of a
bugKy ride which tes took with
Loving's daughter, moved rapidly today
and, when court adjourned this after
noon, the prosecution had rested and the
defense had begun Its case. The pro
gress In the trial was remarkable. Before
adjournment of the morning session, a
Jury had been secured, mostly middle
aged men and all but three of them 'mar
ried, 11 of them being farmers, the lone
exception being a merchant.
The taking of testimony began upon the
re-convening of the court and late this
afternoon the Commonwealth rested Its
case and Judge Loving, whose defense
Is the unwritten lato, had taken the
witness stand in his own behalf.
Backed by the millions of Thomas F.
Ryan, of whose Virginia estate he has been
overseer for a number of years, and
with powerful political influence, every
thing known to the legal fraternity will
be taken advantage of In the efforts to
acquit the Judge,
The relatives of young Estes, whose
family connections extend to the Gover
nor of this state, will exert every effort
to clear the memory of the dead man
from the stain of wrongdoing.
OVERRIDE SCHMITZ' VETO
Supervisors Pass Budget and Two
Desert Convicted Mayor. '
SAN FRANCISCO, June St. The Board
of Supervisors this evening passed the
city budget over the veto of Mayor
Schmitz. The budget was returned to
the Board by the Mayor with six vetoes,
four affecting minor appropriations for
the District Attorney's office. The others
were those appropriating $720,000 for
establishing an electric conduit railroad
on Geary street and $720,000 for the re
pairing of streets.
A development of the session was the
breaking away of Supervisors Tweitmoe
and O'Neil from Schmitz by their action
In voting for the budget. Both are union
labor men and strongly supported
Schmltx In the past.
JAPS TO SUE SAN FRANCISCO
Restaurant Owner Wants to Recover
Damages Prom City.
"WASHINGTON, June 24 According- to
private advices received here today, the
proprietor of the Horseshoe Restaurant,
which was attacked during the recent
anti-Japanese riots in San Francisco,
will tomorrow enter suit in the sate
courts of California a pa Inst the city of
San Francisco to recover 'damages done
the restaurant property.
District Attorney Devlin, a telegram
from San Francisco says, will represent
the Japanese plaintiff in the action. It
was stated at the Department of Justice
today that some time ago Mr. Devlin
waa instructed to offer his services In
case suits were filed.
ELEVEN KILLED BY HEAT
Pittsburg lias Temperature of 8 2,
Causing Many Prostrations.
PITTSBURG. Pa., June 24. Eleven
persons are dead and many prostrated
as a direct result of the warm weather
experienced in the Pittsburg district
within .the past 24 hours. The maxi
mum temperature today was 82.
FRENCH YACHTSMEN WIN
Challenger Ar Men Is First Again In
Nasty Weather.
KIEL. Germany, June 24. The French
yachtesmen will carry the French cup
home with them. The French challenger
Ar Men won again today In nasty,
squally weather. Tim of winner, 3
hours, 40 minutes, 15 seconds.
Novelty Silks
Some of, the newest and smart
est designs, in taffeta and Lou
isine; come in stripes, checks,
invisible plaids, etc.; regularly
$1.00 and $1.25 tha tZQn
yard; special iDJC
- WW
FIFTH STREET WASHINGTON STREET SIXTH STREET
LADIES' HOME JOURNAL PATTERNS
WASHINGTON STREET
. SHOWER-PROOF
FOULARDS
Fine Silks, Cheney Bros.' make,
that sell regularly for $1.25 the
yard, without an equal for
wear and beauty; very special
for Wednesday," the Qq
$10'M B
uys A Smart Tailored
Suit
Worth to $48M Each
This is the last day of this Suit Sale, and those who fail to take advantage of it, the greatest bargain opportunity of the season
will be missed. Stylish, serviceable, smart, snappy suits are selling for $10.98; garments that you would ordinarily have to pay up to
$48.50 for. It's a bargain that was made possible by a. large purchase we made in New York. Good styles Eton, Prince Chap and
Jacket models. They are handsomely trimmed and superfluously tailored. Suits that any maker in the world would be proud to turn
out, and ready cash bought these for much less than ordinary figures. The sale ends today, and those who fail to come while the
bargains last will pay from two to three times as much as regular figures. Come and look them over. You'll need one for vacation wear,
anyway, and where else could you buy one for this small a price 1 We took an immense number of them. A large manufacturer had them
on his hands and we got them at our own price. Made an offer for the entire lot, and when we told the maker that the offer was CASH,
he let us make the price. That 's why we took so many at this time of the j'ear got them for so little that e knew we could sell all we
could get. -
Till tonight at 6, if the suits last that long at this remarkably low price, we'll sell these splendid suits for
the lowest price such good suits have ever brought. All good styles ; Eton, Prince Chap and Jacket models.
All new garments. "None on approval, none laid aside on part payment, and none sent out on phone orders.
First comers have large assortment to choose from
.98
BUY ORIENTAL RUGS
Nothing you can put in your home will lend more to richness and re
finement than a beautiful, soft-toned Oriental Rug. When you are buying,
use care in selecting from a large stock. Choose the pattern that will please
permanently, and. pay only a reasonable price, which you can do by buying
right. Look over this assortment, and the problem is largely solved. The
assortment we are telling about here was bought by our buyer, and is one
of the most complete collections ever offered for sale on the Pacific Coast.
We can't give you prices, as there are too many of them. Lovers of artistic,
rugs will be well repaid for coming to view the beauties we are offering.
The collection includes rich KIRMANSHAHS, TABRIZ, SAROUKS,
FEHREHANS, KHIVAS, KAZAKS, GUANGHES, CABASTANS, DAG
HESTANS, SHIRVANS, and all the better weaves of these famous RUGS.
.We won't quote vou prices on account of the immensity of the assort
ment we'll just tell you that we are making special prices on these late
arrivals. Lovers of artistic rugs will do well to come and inspect this col
ection, even if they have no thought of buying. 'Tis a rare treat to the
connoisseur to find so rich a collection as this.
"
Sunbonnets
Our entire stock of Misses and Ladies Sunbonnets,
made of plain or fancy wash materials and made in
very pretty styles, too. Splendid to shield you from
the hot Summer sun and prevent freckles
and sunburn. Choice at
HOME PHONE IT
Those of our customers who are fortunate enough to hare tha
Secret Service phone installed can now reach us by this service on five
different phones. One in the credit department, one in the shoe de
partment, one in the glove department, one at the accommodation
desk and one in the advertising and mail order department. Look
in your Home phone book and find their numbers. Get the quickest
sales possible at the best store in Portland.
Men's and Women's $2.50 Shoes Sell for $1.98
In the Greatest Shoe Sale In the
History of the Store
This $1.98 Shoe bargain includes a grand collection of Women's High or Low Shoes, and Men's Shoes in light
or medium-weight; the choice of any $2.50 shoe inthe store.
In the women's shoes there are values as high as $3 and $3.50. They come in canvas or leather, brown, tan,
reseda, green and gray; also plain white. There are the new style four-button or the shoes with the large
eyelets for ribbon ties; patent and dull leathers; as pretty a shoe as there is in the market for $2.50 and $3.00
a pair now selling for $1.98. It is a shoe offer that won't be duplicated for many months to come. Come
early and get the shoe bargain of the season at :
Then, in addition to this phenomenal special, we offer the following specials while this tremendous shoe sale is one. Today and tomorrow
p$p& pi
fHt Sato
MEN'S SHOES From well-known makers, lines
that we are discontinuing and close out for much
less than the regular value. Represented, are
styles from Slater & Morrill, McDonald & Kiley,
J. E. Tibbetts and Florsheim & Co. Shoes in many
" styles, oxfords and high shoes; come in patent
leather or dull finish, and worth to
$6.00 the pair; special
MEN'S, MAILMEN'S AND POLICEMEN'S
SHOES Seven styles, shoes worth $5.00 at reg
ular times. Special for this
sale ."
MEN'S SHOES In this lot we put all of our
regular $3.50 and $4.00 shoes. Select any shoe
or oxford in our men's stock that sells regularly
for $3.50 or $4.00, and 'twill cost
you but
This includes tan, patent leather and black leath
ers, and all sizes and lasts.
$3.89
$3.89
$3.19
$2.69
MEN'S SHOES Take in all styles of high or low
cut shoesj patent or dull finish leathers; values
that bring $3 to $3.50 regularly; very
special for three days
WOMEN'S SHOES Women's - popular-price ox
fords, in all leathers and styles, regular $3.50 and
$4.00 grades. Patent leathers, gunmetal calf,
demi-patent and kid leathers. Come in button
and lace styles; with light or heavy-weight soles.
Garden ties and pumps are also to be found in
this lot.. There. are some pretty colored leather
shoes here, too brown, tan, pink, blue, green and
red. There are also canvas shoes of A O 1 Q
sea island cotton; values to $5 pair.V"
WOMEN'S SHOES Gives you choice of any tan
or brown high shoe in the store for $3.19. Fine
assortment; button or lace; come in brown, tan,
champagne, etc.; light or heavy soles; regularly
worth $3.50 to $5.00; special Q JQ
sale pO.AS7
only; come early.
WOMEN'S SHOE SPECIAL One thousand pairs
of white canvas oxfords, in two different styles;
one is in a plain toe, with medium heel and light
soles; the other is a Blucher cut, with tip. Any
and all sizes, and very popular shoes, j OQ
worth $1.75 pair, for '. p 1 . J k
WOMEN'S SHOES Divided into two parts one
part the patent leathers, an'd the other the dull
leathers and suede-finish shoes. The patent leath
ers we sell are making a reputation for us sel
dom has a pair come back or a complaint. The.
dull leathers include gunmetal calf, royal kid, vici
kid and demi-patents.
WOMEN'S SHOES Women's regular $3.00 Shoes,
with several lines of regular $3.50 shoes added.
Wide choice as to styles and leathers; light or
heavy soles; patent or black leather; also tan'
leather or white canvas. Oxfords C0 f!Q
that sell from $3 to $3.50; special. . .P" &
WOMEN'S SHOES White Canvas Oxfords a lot
that runs in value to $3.50. Come with light or
heavy soles, high or medium heels, and in Gibson,
Grecian or blucher cut.
T
ROBBER AGAIX AT VORK ON
YOSEMITE ROAD.
Two Stages Stopped and Passengers
Compelled to Yield Their Posses
sions to Lone Highwayman.
FRESNO. CaL, Juno 24. A dispatch
was received at Madera late this after
noon stating that two Yosemlte stages
were held up this afternoon between
Crooms and Grub Gulch, 35 miles from
Madera. The holdup is said to have
been committed by the same man who
held up the stage a few days ago. and
who held up stages the two preceding
seasons. No particulars were received.
A dispatch received from Berenda
tonight stated that the lone highway
man who held up two of the Tosemlte
stages obtained $150 from tha passen
gers. The two stages were trailing
each other, and were both bound for
the valley. The robber wore a white
mask and had' a new rifle. He ap
peared nervous, and it is not believed
that he Is the same man who held up
the stages near Ahwanee a few days
ago.
Voters Recount Measure.
NEW YORK. June 24. Acting Mayor
Patrick F. McGowan vetoed the supple
mentary recount bill late today. The bill
now goes back to the Legislature, which
will be asked to pass it over the veto.
THE DAY'S DEATH RECORD
Julius Jacobs, Assistant United
States Treasurer.
SAX FRANCISCO, June 24. Julius
Jacobs, Subtreasurer of the United
States at San Francisco, died suddenly
this morning at his home. He had
been in office 12 years.
WASHINGTON, June 24. The Treas
ury Department today received a tele
gram announcing the death of Assist
ant United States Treasurer Jacobs at
Ban Francisco. Treasurer Treat took
direction of the office by wire and,
pending his arrival in San Francisco,
has designated Cashier Burnes to act
aa Assistant Treasurer.
TENEMENT FALLS DOWN
Sew York Building Collapses and
Many Persons Killed.
NEW YORK, June 25. A four-story
building at the corner of La Fayette and
Walker streets collapsed early this morn
ing. The police announced that 18 people,
members of Italian families, were In the
building. Seven are known to have es
caped, two have been rescued and nine
are supposed to be still beneath the ruins.
Tachlno, 19 years old, and his slater.
Mamie, were taken from the ruins' alive,
but badly injured. The police fear that
most of the nine persons still beneath the
ruins are dead. it will be several hours
before the work of rescue is completed.
Four persons are positively known to
be dead. They are two Infants whose
bodies can be seen, and a ntan whose
body Is known to be in the debris. An
other infant, still alive, has been located
by Its moans. Four members of the Ta
chlno family, father and three- young
children, are thought to be dead In the
Keep your ears open!
You may hear something
to your advantage! If
you hear a good old
fashioned, homey expression-
it may be just the
business phrase for which we
are offering $100!
ruins. Only one dead body, that of a
man, has been recovered.
CAPTURE 35 MOONSHINERS
Revenue Officers Destroy Illicit
Stills In North Carolina. -
ASHEVILLH, N. C, June 24. The party
of revenue officers who had a fight with
moonshiners In Stokes County on Friday
last, returned here today, having captured
35 moonshiners and destroyed 13 Illicit
stills.
Pulajanlsm Ended in Island.
MANILA, June 24. Governor-General
Smith has returned from a month's tour
of Inspection of the northern provinces.
He declares that Pulajanism is ended on
the islands of Samar and Leyte. He gives
the entire credit for the solution of the
difficult situation to Governor Curry, of
Samar, and Governor reveyra, of Leyte.
Jewelry, Diamonds,
Cut Glass, Novelties,
Optical Goods
And hundreds of other useful and beautiful articles In com
plete lines from the hands of the leading designers and manu
facturers. Our stock is so varied and selected with such care
that it contains everything worth while shown by the largest
Eastern establishments. This is one of the many advantages
found in trading where the stock is complete to the slightest
detail.
Jewelers. Optldaaa and Diamond Importers.
Corner of Third and Washington Sts. Portland, Or.