The Spirit of American Government: A Study Of The Constitution: Its Origin, Influence And; Relation To DemocracySmith, J. Allen (James Allen)
History
The Spirit of American Government: A Study Of The Constitution: Its Origin, Influence And; Relation To Democracy
Smith, J. Allen (James Allen)
Constitutional history -- United States; United States -- Politics and government
It is interesting to observe that the Federalist judges in the early
years of our history under the Constitution did not deem it necessary to
find a constitutional ground for decisions of this sort. But with the
overthrow of the Federalist party and the progress of belief in popular
government, there is an evident disposition on the part of the court to
extend the protection of the Federal Constitution to all the powers
which it claimed the right to exercise. Thus in the Dartmouth College
case, decided in 1819, the United States Supreme Court appears to have
abandoned its earlier position and to have recognized the Constitution
as the source of its power to annul state laws.
"It is under the protection of the decision in the Dartmouth College
case," says Judge Cooley, "that the most enormous and threatening powers
in our country have been created; some of the great and wealthy
corporations actually having greater influence in the country at large,
and upon the legislation of the country than the states to which they
owe their corporate existence. Every privilege granted or right
conferred--no matter by what means or on what pretence--being made
inviolable by the Constitution, the government is frequently found
stripped of its authority in very important particulars, by unwise,
careless, or corrupt legislation; and a clause of the Federal
Constitution, whose purpose was to preclude the repudiation of debts and
just contracts, protects and perpetuates the evil."[186]
Any government framed and set up to guard and promote the interests of
the people generally ought to have full power to modify or revoke all
rights or privileges granted in disregard of the public welfare. But the
Supreme Court, while permitting the creation or extension of property
rights, has prevented the subsequent abridgment of such rights, even
when the interests of the general public demanded it. The effect of this
has been to make the corporations take an active part in corrupting
state politics. Special legislation was not prohibited. In fact, it was
a common way of creating property rights. If a bank, an insurance
company, or a railway corporation was organized, it was necessary to
obtain a charter from the legislature which defined its powers and
privileges. The corporation came into existence by virtue of a special
act of the legislature and could exercise only such powers and enjoy
only such rights and privileges as that body saw fit to confer upon it.
The legislature might refuse to grant a charter, but having granted it,
it became a vested right which could not be revoked. The charter thus
granted by the legislature was a special privilege. In many instances it
was secured as a reward for political services by favorites of the party
machine, or through the corrupt expenditure of money or the equally
corrupt distribution of stock in the proposed corporation among those
who controlled legislation. Not only did this system invite corruption
Public-domain text, read in full here on John Shaqi.
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