PAGE TWO
HEPPNER GAZETTE TIMES, HEPPNER, OREGON, THURSDAY, OCT. 3, 1935.
Corporate Personality Involves
Commerce Clause
By CALVIN CRUMBAKER
Most Interesting development of
the division of commerce Into state
and Interstate has arisen through
corporation laws rather than
through attempts by either Con
gress or state legislatures to burden
the commerce under the jurisdic
tion of the others. Frequently this
type of clash arises out of an at
tempt by a state to regulate cor
porations, in their capacity of ar
tificial persons, in business carried
on by them in the state.
The difficulty centers in the pe
culiar use of the terms person and
citizens in the Constitution. Cor
porations are "persons and have
the constitutional rights of per
sons. They are not "citizens" and
cannot receive the rights of citi
zens. So when the Constitution says in
the Fourteenth Amendment that
no state "shall abridge the privil
eges or immunities of citizens of the
United States," it is understood that
any citizen may go where he will In
any state and thus claim every
right, privilege and immunity set up
for that state for citizens. No state
may favor its citizens over citizens
of another state.
The same amendment -says fur
ther, "nor shall any state deprive
any person of life, liberty or prop
erty without due process of law;
nor deny to any person within its
jurisdiction the equal protection of
the laws." Interpretation of these
clauses throws considerable light
on the present attempt of the Fed
eral Government to take over the
regulation of business, wages, and
so forth, whether in intrastate or
in interstate commerce.
Courts have held that a corpora
tion, not being a natural person
which can secure its citizenship by
birth or naturalization, cannot mi
grate, as a citizen, whenever it
chooses, and demand in the place
to which it moves the full rights
of citizens and the equal protection
of the laws.
Being a person created by law, It
has a legal standing only in the
state creating it, or in such states
as shall by comity, or otherwise,
through legislative action, recognize
its personality.
The attempts of corporations to
circumvent the power of a state to
exclude them from operation in the
state has led to some fine distinc'
tions between interstate and intra'
state commerce.
Under the Constitution the state
cannot prevent a corporation from
carrying out interstate business in
the state. A state cannot in any
way obstruct or burden interstate
commerce, regardless of whether it
is carried on by a natural person
or by a corporation having legal
existence only in some other state.
On the other hand, a state can
prevent any foreign corporation
from carrying on intrastate com
merce of any kind whatsoever. The
decision on some of these disputes
will go far in helping decide what
Congress can and cannot do.
In one case a tea company sent its
solicitors throughout a state to re
ceive orders for its products. It
had no right to do intrastate busi
ness. It could sell its products by
the carload through the personal
solicitation of agents so long as it
filled the orders from outside the
state.
One salesman, finding a sample
box or two of toilet cream left over,
sold and delivered them to a cus
tomer. He was promptly fined for
doing business without a city li
cense. The case wa3 taken through
all the courts until finally the Su
preme Court of the United States
upheld the verdict.
A deal of trouble over two cans of
toilet cream, to be sure, but not too
much trouble to define a basic law.
Both the salesman and the corpor
ation were guilty of doing Intra
state business without proper au
thority from the state. Carloads of
toilet cream could be sold in the
state by the same persons by fol
lowing the rules applying to inter
state commerce.
The balance between intrastate
and interstate commerce is delicate
as you get closer to the boundary
line.
A corporation may actually set
up an office within a state and
maintain it as headquarters for
salesmen and a repository for sam
ples without engaging in intrastate
commerce In spite of state laws de
claringthis to be doing business in
the state.
Such a corporation lays itself lia
ble to severe penalties if it gives
evidence, by inadvertent acts, that
it is doing business in the state. It
must not maintain a local bank ac
count, deliver repair parts out of
stock, sell and deliver a sample,
confirm an order, accept a pay
ment on account, or do many other
simple acts which could be con
strued as maintaining a place of
business.
Portland discovered that though
agents of Real Silk hosiery and
agents for Curtis publications were
local residents who solicited orders
and accepted payments, they were
doing interstate business for the
reason that all shipments were from
out of the state. A state cannot
enforce laws against a foreign cor
poration which does nothing but
interstate commerce within the
state.
Usually keeping goods In a ware
house for delivery upon order, even
where the order Is confirmed out of
the state, has been ruled to be do
ing business in the state and sub
ject to the regulation of the state
This might put such business be
yond the control of Congress under
the Interstate commerce powers.
In some cases states have denied
the right of a corporation making
conditional sales contract from en
forcing collection In state courts
for the reason that the corporation
was Illegally doing business within
the state.
On the other hand, If a corpora
tion consigns goods to a commis'
sion merchant who takes full re
sponsibility for sales and delivery,
he is doing business in the state
while the corporaton owning the
goods is not The commission mer
chant may be a natural person, a
partnership, or a domestic corpora
tion. If the consignee were an "ag
ent" of the out-of-state corporation
it may be assumed that the court
would rule that the corporation, not
the agent, was doing business in the
state.
For a long time past states were
anxious to extend their jurisdiction
over corporations aspiring to do
business in the state. In general
peculiar opinion favored the exten
sion of such authority.
Today when so much dependence
is put in national legislation as an
aid to recovery these precedents are
very troublesome, especially since
the court has shown the tendency
to follow the constitutional restric
tions against Interference by either
Congress or state legislation in the
respective jurisdiction of the other.
It has been pointed out that it
was next to impossible for a cor
poration to carry on a nation-wide
business without falling into the
meshes of state law. Most of them
found it necessary to make terms
with the states in order to protect
themselves against liability for un
lawfully doing business in the state.
It Is also next to impossible for
Congress to pass a law of general
application for the reason that
small part of business is either ex
clusively inter- or exclusively intra
state. Mixed jurisdictions will make
any general law impracticable, and
in recovery legislation general laws
universal in application appear to
be necessary.
THE FEDERAL CONSTITUTION
AND THE CONTROL OF
RAILROADS AND
TRUSTS.
It has been suggested that the
commerce clause led to a conflict
between state and federal author
ity. When a state attempted to fa
vor its citizens in competition with
other states; when a state attempt
ed to regulate and control corpor
ations formed in other states, and
when a state attempted to regu
late railways and trusts.
Though railways were a common
object of suspicion to both state
and federal governments, the fed
eral government was slower in reg
ulating than Vere certain of the
states, notably the granger states.
The first cases to reach the Su
preme Court came under state laws
and involved two questions: Could
a state regulate private business,
and could a state regulate inter
state commerce? In general, the
Supreme Court, in the early cases,
upheld both rights.
The right to regulate under the
police power has grown and ex
panded with the years, but not the
right to regulate interstate com
merce. Beginning in 1886 with the
Wabash case, a long series of cases
ending with the Wisconsin Passen
ger Fares case in 1922, have expand
ed the concept of interstate com
merce so that states have gradually
been shorn of the power to regulate
railroads at all. As far as railroad
regulation is concerned, the several
railroad commissions are virtually
obsolete legal institutions. The reg
ulatory power of the Federal gov
ernment has continually increased,
both relatively and absolutely.
In public utility control quite the
reverse is true. The great burden
of regulation has been borne by the
states. This was more or less sat
isfactory when public utility serv
ices were essentially intrastate in
nature. Only lately has the atten
tion of Congress been directed to
the fact that super-power concerns
which are interstate in their com
mercial operations, and in their fi
nancial organizations, present prob
lems that state cimmissions cannot
adequately meet The Federal
Power Commission, up to the pres
ent, has remained the high sound
ing name of a commission with lit
tle or no power to regulate Inter
state rates or services.
With the regulation of highway
carriers a similar set of conditions
exists. Congress has toyed for sev
eral years with the regulation of in
terstate highway transportation.
Thousands of pages of reports have
resulted from Congressional study
of the problem without the develop
ment of a policy of regulation. Con
gress has virtually abdicated Its
authority to control this very Im
portant branch of interstate com
merce. The states, on the other hand,
have been very active in asserting
their authority to regulate highway
carriers. They have successfully
exercised complete control of com
mon carriers in intrastate com
merce under the doctrine of public
interest, and an almost equally
sweeping control of contract car
riers in Intrastate commerce, un
der the state's authority to control
public highways. States even exert
vast authority over interstate high
way carriers, under the authority
to protect the health, safety, and
general welfare of the people.
The weakness of state regulation
lies in the absence of any co-ordinated
national rate policy for high
way carriers. They are keen com
petitors of the railroads who oper
ate under a rate structure recog
nized as part of a national struc
ture, controlled as part of a na
tional problem. Interstate highway
carriers have only such controls as
they choose to take In the absence
of regulation by national agencies.
Intrastate transportation is regu
lated by state agencies with local,
rather than national, Interests in
view. The power of Congress should
be decisive, since highway carriers,
In the final analysis, determine the
future of railroads.
In theory Congress can exercise
all power necessary to carry out Its
delegated control over Interstate
commerce. In theory highways
are solely within the control of the
states. Hence an interesting ques-1
tlon of Jurisdiction is raised. What
if the right of Congress to control
interstate commerce in all its phas
es should lead to an attempt at
control by the federal government
of highways which belong exclusive
ly to the states? This is what hap
pens when an immovable body
meets an Irresistible force. So far
the question is not important for
the reason that federal regulation
is inactive.
In trust regulation, conflicts in
jurisdiction between the state and
the federal governments developed
in like manner. Most of the states
passed stringent anti-trust laws.
Two or three, notably Missouri and
Texas, apparently made attempts
to enforce the laws. Texas succeed
ed in ousting the Waters-Pierce Oil
company, and in levying a fine of
over a million and a half dollars
for carrying out in Texas an ar
rangement for restraining trade
prepared outside the state.
On the whole, state regulation was
desultory and ineffective, partly be
cause of inefficient machinery for
enforcement, partly because laws
were not skillfully drawn to give
the state the advantage of all its
legal powers, and partly because
anti-trust campaigns in most states
consisted in large part of "shadow
fighting" carried out by politicians
who found the trust bogey useful
in their operations. The movement
developed one fact quite clearly.
States possess vast powers to con
trol business and cemmerce within
the state. Lack of vision and not
lack of power is the source of dif
ficulty in regulating business.
The federal anti-trust laws were
designed to prevent combinations
in restraint of interstate commerce.
The usual question as to the dvision
of commerce between state and in
terstate appeared. Some interest
ing variations of the term interstate
were made in various cases which
arose. For example, in the E. C.
Knight case of 1895, the court rul
ing has been interpreted, or misin
terpreted, as saying that combina
tions of manufacturing concerns
are not subject to federal law. La
ter, in the so-called Addystone case
in 1899, the court ruled that a pool
of manufacturers were subject to
the national act when their con
tracts were for delivery beyond
state boundary lines. Hence a com
bination of manufacturers were held
to be in interstate commerce, sub
ject to the natonal law.
It cannot confidently be asserted
that the national laws for handling
the trust problem have been effect
ive. This is partly due to the fact
that laws have not been drawn to
take full advantage of recognized
powers, partly to the fact that im
portant aspects of the problem are
intrastate rather than interstate in
nature, and partly to the fact that
national political leaders cannot re
frain from "shadow fighting," as in
the case of state anti-trust laws.
It is surprising that in recovery
legislation it is desirable to permit,
or to prescribe, and to enforce, in
the name of public interest, the type
of restraint of competition outlawed
in the anti-tust period. The division
of power between the state and
federal governments holds over un
der the new legislation. The ex
perience gained in railroad, public
utility, and anti-trust laws indicates
that this division of authority,
while embarrassing, does not pre
clude the possiblity of effective re
covery legislation.
KOAC Starts Three New
Home Study Club Series
Several new home study programs
designed to be of particular inter
est to parents and home owners of
Oregon are announced for the win
ter months by KOAC, the state
owned radio station at Corvallis.
The first program of a series en
titled "Is My Child Growing Up?"
will be given Tuesday afternoon,
October 1, and at the same hour on
each Tuesday thereafter. This ser
ies will deal especially with prob
lems of "teen-age" boys and girls,
and will feature on alternate Tues
days Dr. O. R. Chambers, professor
of psychology at Oregon State col
lege, and Miss Leah Finkelstein
trained librarian of Portland.
Dr. Chambers has long been a
leader in the field of behavior ad
justment and a popular lecturer at
schools for parents held in various
parts of the state by the O. S. C.
extension service. Miss Finkelstein
will present book reviews keyed to
the interests of adolescent boys and
girls.
Two other series will begin Fri
day, October 4. One of these, en
titled Home Furnishings," will
consist of lectures each Friday by
staff members of the school of ar
chitecture and allied arts at the
University of Oregon, broadcast at
8:45 oclock.
The other series, entitled "Short
Story," will be presented each Wed
nesday and Friday evening at 8:15
oclock by Alexander Hull, noted
uregon autnor. Hull Is a new
KOAC staff member. These two
series will be offered in correlation
with correspondence courses of the
same names at U. of O. given thru
the General Extension division.
Supplementary material for the
use of groups of neighbors or oth
ers who wish to enroll as radio
clubs and assemble regularly to lis
ten to any of these series will be
supplied each week by KOAC. Any
group may obtain an enrollment
blank from the station and will be
required to pay a small fee for the
club as a whole and to fill out a
weekly report on radio reception,
opinion of the broadcast and any
questions the club may wish an
swered. CARD OF THANKS,
Words cannot express our appre
ciation for all the kindnesses given
us in our bereavement. We sin
cerely thank our many friends and
neighbors for their help, sympathy
and beautiful flowers.
Arthur P. Parker
and Gladys,
The Reaney Family.
Printing In the modern mode as
turned out by the Gazette Times
shop will please you and attract at
tention to your business.
C. C. Colt Made Chairman!
For Oregon R. C. Rollcall;
Carnelius C. Colt, senior vice
president of the First National
Bank of Portland, long active In
Red Cross, Boy Scout and Y. M. C.
A. welfare work, has accepted the
appointment of chairman of the
Oregon State Roll Call committee
for the American Red Cross, A. L.
Schafer, manager In the Pacific
Area, informed Oregon Red Cross
chapters today.
As State Roll Call chairman, Mr.
Colt calls upon all citizens to rally
to the Red Cross flag, enrolling dur
ing the annual membership cam
paign which will be held from Ar-
-on '3u!Ai3s5(UBiix o Xbci aonsiui
vember 11-28.
Preliminary to the actual enroll
ment of members six regional Roll
call conferences will be held in Ore
gon at which Charman Colt of the
Oregon committee and Douglas H.
Moore, director of Roll Call for the
Pacific Branch Red Cross, will be
the principal speakers.
The Oregon Roll Call conferences
will be held at Grants Pass, October
14; Bend, October 16; Corvallis, Oc
tober 21; Portland, Ootober 22; The
Dalles, October 23; Baker, October
25.
Thirty-four Red Cross chapters
in Oregon have set as their object
ive, the enrollment of 55,800 mem
bers as this state's quota of the
national objective of five million
members.
Chairman Colt says the Oregon
membership now Is 44,214 or 4.64
per cent of the state's population.
The national honor flag is held by
the state of Nevada, which enrolled
6.79 per cent of its population in the
Red Cross in the Roll Call last fall.
Achievements of the Oregon chap
ters will be narrated during the
Roll Call conferences and emphasis
will be placed on the national Red
Cross campaign for the establish
ment of first aid stations on the
principal highways and for the pre
vention of accidents In the homes
and on the farms.
Red Cross records show that 11
of the 34 chapters handled a month
ly average of 1.535 cases dealing
with the problems of veterans o.r
their families. Fourteen chapters
had a monthly average of 1.548 cases
in which they extended relief to
civilian families.
In the- field of Public Health
Nursing the nurses made 2,230 vis
its to or in behalf of patients. Pre
school or school children Inspected
by doctor or nurse numbered 1,307.
Physical defects found In such In
spection numbered 2,163. Children
treated for one or more defects
numbered 516.
Ten of the Oregon chapters com
pleted classes in Home Hygiene and
Care of the Sick and issued 590 cer
tificates to persons taking the In
struction. There are fourteen ac
tive instructors.
In the field of First Aid to the In
jured the 34 chapters issued certif
icates to 5,033 persons who complet
ed the course of instruction. There
are 385 qualified first aid Instructors
in the state.
Twenty-three of the Oregon chap
ters certified 818 persons who quali
fied as life-savers. Since 1914, the
Oregon chapters have enrolled 8,-
243 persons who qualified as life
savers. There are 137 life-saving
instructors in the state.
Special Volunteer Service In 18
chapters included the production of
5,792 garments for needy and dis
tressed families, the production of
l,b8b surgical dressings and 2,777
pages of Braille transcription for
the blind.
Twenty-six chapters enrolled 28,
805 Junior Red Cross members in
154 schools of the state.
States Exchange Data
On Basic Science Law
Corvallis. Reciprocity with Min
nesota has been arranged in regard
to basic science examinations for
those planning to enter any branch
of the healing arts, announced Dr.
Fasten, O. S. C, chairman of the
state committee In charge of ad
ministering the basic science law.
Those passing the examination in
either state will be admitted with
out examination In the other. Such
arrangements with a few other
states having a law similar to Ore
gon's are being negotiated.
The next basic science examlna'
tion for Oregon has been announced
for November 16 at the Portland li
brary, Dr. Fasten announces. Ap
plications must be filed with Charles
Help Kidneys
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Pains. Stiffneea, Burning, Smarting,
itching, or Acidity try the guaranteed
Doctor's Prescription Cystex(Siaa-tex)
nw Muat fix yooopor money
SflcX back. Ouljlbf ttdrugiciaU.
cv
LIVESTOCK
EXPOSITION
-witv
HORSE
SHOW
aata
RODEO
PORTLAND,OREGON
October 5 fo 12
19 Shows In One U r under one
roof. Exhibit! of pure-bred Livestock,
Dogs, Poultry.PotSlock.Wlld Life, Lond
Products, Manufactured Products, 4-H
Club and Smith -Hughes Vocational
Education Work; Combination Horse)
Show and Indoor Rodeo.
LARGE PREMIUM LISTS
iu.iiu-i.wji.i-i.f f mjiui-n
D. Bryne, secretary cf the state
board of higher education at Eu
gene by October 30. About 16 took
the examination at the special mid
summer session.
Egbert Young, In town Monday
from the Eight Mile section, re
ports seeding progressing rapidly
in that section, farmers going ahead
and putting the seed Into the dust.
The dust has made the chore quite
unpleasant, he said.
Controls
wheat smut
AT LOWER COST
than any other dust
(IBS) tlJWtt)
Treat seed with New Improved
CERESAN and you'll get effective
control of stinking smut at lower cost
than you can with any other dust
treatment 1
At the average seeding rate, less
than 3c an acre buys this protection
against loss. Many other advantages,
tool New Improved CERESAN has
been recommended bv the U. S.
Dept. of Agriculture. Makes almost
no Hying dust in treating. Lan be
applied by gravity treater with
little labor. Will not clog or break the
drill. And as a rule, increases yields!
In actual tests the increase has
averaged 1.13 bushels an acre on
clean seed I
Use on barley, too, to control
covered smut, black loose smut,
stripe and seedling blight. Cereal
Pamphlet 103-D free. Ask your dealer
or write to Bayer-Semesan Co., Inc.,
Wilmington, Delaware.
TREAT SEED EVERV YEAR
-IT PAYS
take
the back-ache out of
You don't dread
washing and iroiv
ing when you
have an all-elec
tric laundry. For
an electric wash
er, an electric
ironer and an automatic electric
water heater certainly do take
away all the drudgery from wash
ing and ironing. And they do
their jobs so willingly you're
finished in half your usual time
Because you are able to buy
electricity at such low rates, the
cost of operating an electric wash
er and an electric ironer is only a
few cents a week. An automatic
electric water heater costs so little
to operate that it is scarcely
noticed in the budget of the
average family.
Prices on these three appliances
were never more attractive. Be
thrifty. Modernize your laundry
equipment now.
New electric washers
are gentle with
your clothes!
TP HE new electric washers now pn
display at dealers and in Pacific
Power & Light Company showrooms
are kind to even the most delicate
fabrics. Yet their cleansing action is
cm
ill!
io. - ! si
Coach Passengers on
The The
PORTLAND PACIFIC
ROSE LIMITED
Ar. CHICAGO . 8:50 A. M. Ar. CHICAGO . 9:25 P.M.
Breakfast 25c Luncheon 30c Dinner 35c
These delicious low cost meals avail-
LAST
CALL!
miMUER
XCURSiON
FARES END
Heppner Gazette Times, Only $2.00 Per Year
let low-cost electricity help you
ADVISES Audrey Herington
Home Service Director
for Pacific Power Light Company
quick and thorough. In from 5 to 7
minutes they remove every trace of
dirt leave your clothing fresh and
spotless. The wringers are efficient, too
safe and quiet. Attractively finished,
any of these new models gives you more
value in a washer than you have ever
been able to buy before at the same
price. See them today I
NEWS:
An electric ironer
for only '44.95
e Now you can buy an electric
ironer for a little as $44.95. A
quality ironer, too, of the type that
operates by easy finger-tip control.
The open end roll makes possible
the ironing of everything from
sheets to shirts.
If you are shy on space, there is
another new ironer yoy must see
Above: Table
type ironer
which
operates by
finger-tip
control
Left: New
fold-away
ironer
This one folds into a vertical cabinet
when not in use. Because it takes
up no more space than a chair, it
can easily be kept in your kitchen all
the time. The price ii only $64.50.
A modern electric ironer will save
you hours of time and tedious
SEE ANY DEALER IN ELECTRICAL
EQUIPMENT
or PACIFIC POWER & LIGHT COMPANY
Alwayt at Your Servce)
ableto passengers in deluxe reclining
chair coach (also in tourist sleeping
car on the Portland Rose). A la carte
prices: sandwiches 10c, milk or cof
fee 5c,doughnuts or pie 10c, fruit 5c.
Clean, quiet, restful travel In air-conditioned
coachel where temperature and humidity
afford perfect comfort regardless of outside
weather condition!. Fresh pillows supplied
free day or night and porter on duty to look
after your wants without charge.
Luxurious appointments and attentive ser
vice for travelers In Pullmans as well as In
1 coaches and tourist sleeping cars.
for Information and reservations
call on
LOCAL AGENT
PACIFIC
laundry work!
labor . . . will free you from all the
standing, lifting and pushing usual
ly connected with ironing. Con
vince yourself. Sea the new models
in any dealer's store or on our
sales floor. Remember, you can ar
range to pay for your electric ironer
as you use it.
Prove what an electric
water heater will
do for you!
HP HE only way to know the real
pleasures of automatic electric hot
water service is to use it. Not only for
laundering, but also for bathing, shav
ing, dishwashing, cleaning, in emerg
enc' and for every other possible use.
That is why dealers and Pacific Power
8b Light Company make you this pro
position: At a special low price you can
buy a 40-gallon automatic electric
water heater. Terms $10 down and
balance in convenient monthly install
ments. The heater operates for only
eight-tenths of lc per kilowatt hour.
Use this heater for all your hot water.
Discover the thrill of abundant hot
water whenever you turn a faucet.
Then if you are not completely satisfied
at the end of 60 days, the heater will
be removed from your home without
charge and your payments refunded.
The only cost to you will be the elec
tricity you have used.
T"ll
ei',svss as- V- S'