board is authorized, with the consent of the Board of Estimate and Apportionment of the city, to grant rights and franchises and to make contracts with reference to the construction and operation of the parts within the city of interstate trunk lines.

We have thus in the city of New York an anomalous condition. Two boards created by the Legislature are exercising powers of the greatest importance with reference to transportation. The Board of Rapid Transit Commissioners is dealing with the question of new facilities and is empowered to make contracts for construction and operation. It is also dealing with the question of the construction of trunk lines into or across the city. The State Board of Railroad Commissioners has general jurisdiction over the railroads of the State and has supervisory powers over the surface lines and the elevated roads in the city. It does not exercise jurisdiction over the subways, as these were constructed under the Rapid Transit Act. But while the powers of supervision are divided, the interests in control of the surface, elevated, and subway lines are now united in a single corporation.

This situation should be met by a comprehensive plan. All the operations of railroad

companies in the territory of Greater New York should be under the supervision of one board. And the board that is to have the power to supervise generally these operations should have the power of initiating plans and of making contracts for the construction and operation of new lines. Instead of two boards dealing with different phases of the same problem, there should be one board empowered to deal with it in its entirety. As such a board would exercise important State powers of control and regulation, it should be a State board, and should be composed of men familiar with conditions in the territory affected. In my judgment it would not be advisable to put all these matters under the control either of the present Board of Railroad Commissioners or of the new commission which I have proposed to take its place. The urgent need of an increase in transportation facilities, and the unique conditions existing in Greater New York, justify the creation of a separate board to deal with the entire matter of transportation in that part of the State.

I recommend that the Board of Rapid Transit Commissioners be abolished and that a new board be created, to have all the powers

now exercised by the Rapid Transit Board, and also to have powers with reference to operations within the territory of Greater New York, or if deemed advisable, within a wider district embracing the adjoining counties into which certain lines of the surface railroads extend,—similar to the powers which I have suggested should be conferred upon the new commission for the rest of the State. There would thus be included the regulation of gas and electric corporations. Provision should be made for the retention, by the Board of Estimate and Apportionment of the city, of all the powers, including powers of approval, which it now enjoys. The commission proposed for the State generally should have jurisdiction over all traffic between points within the city of New York (or within the district as created) and points elsewhere in the State. It is believed that in this manner the whole question of transportation, and of gas and electric service, in the territory of Greater New York can be dealt with in an intelligent and efficient manner, and that to the fullest extent possible the just requirements of that great community may be satisfied.

II.

Speech at the Banquet of the Utica Chamber of Commerce, April 1, 1907.

The importance of providing effective State supervision of public-service corporations seems to be generally conceded. I shall not recount the grievances which have made the subject one of paramount public interest. It is sufficient to say that the people, without animosity toward rights of property, but with a just insistence upon the performance of public obligations, demand that the State shall exercise its power over its creatures and compel due regard for the duties which are correlative to the privileges it has granted.

Federal regulation is not a substitute for State regulation. Federal powers and State powers are exercised in different spheres. Congress has complete authority over interstate commerce and the State cannot interfere with the exercise of its prerogatives; and it is desirable that the Federal authority shall be fully exercised until every abuse incident to

interstate commerce is ended. But however broadly interstate commerce may be defined, there will remain the problem of transportation wholly within the State and of other local public service. Over local or domestic commerce as distinguished from interstate commerce, Congress has no power to exert control, and if the citizens of the State are to be protected against abuses of corporate privileges, in connection with such local or domestic commerce, they must look for their remedy to the State and to the State alone.

It has been suggested that it is a grievous thing that a railroad corporation, for example, should be subjected to the laws of many different jurisdictions. Undoubtedly annoyances may be caused by a variety of laws and regulations. But so far as interstate commerce is concerned the Federal authority is supreme, and as to all matters of through transportation there is no room for conflict. We may be sure that if the act of any State Legislature, or the order of any State commission operates as a regulation of interstate commerce, it will instantly be challenged by the watchful and astute representatives of the corporations affected, the Federal courts will take jurisdiction, and the supremacy of the Federal authority