1903.] PATTERSON—THE PROBLEM OF THE TRUSTS. yi 
medizeval times it was the theory and the practice that it was the 
‘‘duty and the right of the State to fix hours of labor, rates of 
wages, prices, times and places of sale and quantities to be sold.’’! 
The selfish commercial policy of England, intelligently directed to 
the restraint of colonial trade and manufactures, was the great 
cause of the War of Independence. When the success of the War 
of the Revolution had substituted the sovereignty of the people for 
the supremacy of the Crown, there was naturally a jealousy of gov- 
ernmental power and a determination to guard individual liberty 
against oppression. ‘The framers of the Constitution of the United 
States therefore founded the government, not only upon ‘the 
supremacy of the federal government in the exercise of the powers 
granted to it, but also and equally upon the independence of the 
States and the freedom of the citizen. They foresaw the evil 
effects of an unrestrained exercise of the popular will. They 
endeavored to establish and make perpetual the reign of law. They 
crystallized into the Constitution the great principles of free govern- 
ment, and they made it impossible to hastily change that organic 
law. They declared in express terms the supremacy of the Consti- 
tution and the laws made in pursuance thereof; and they created a 
Supreme Court whose judgments should give effect to that declara- 
tion. They united the States in a nation, with full powers of gov- 
ernment for all national purposes, but they retained the sovereignty 
and independence of the States for all purposes of local self-govern- 
ment, and they reserved to the individual citizen as much freedom 
as is consistent with the enforcement of law and the maintenance of 
order. While they granted to the United States the power of regu- 
lating commerce, they limited the exercise of that power to foreign 
and interstate commerce. 
It is to the States, and not to the United States, that we ought to 
look for the legislative and administrative regulation of the indus- 
trial organizations of the present and the future. The power of the 
State is ample. A State may create corporations, with or without 
conditions, and it may authorize a corporation to do any business 
which an individual may lawfully do. A State may forbid a for- 
eign corporation to do business within its territory ; it may permit 
that business on conditions; and it may, with or without reason, 
revoke a permission theretofore granted.? It may, therefore, 
1Mrs, Green, Zown Life in the 15th Century, 
aN. BP: OnCong Lexassn7 7 Ui. 28, 
