unlawful? How these questions have been settled. Statement of the
common-law rule. Incompatibility between the law and present economic
conditions. Suggestions for legal reform. The holding company device,
its abuses and the possibility of abolishing it. Advantages of the
scheme of federal incorporation.

XIII. WHAT OF THE FUTURE? 143

Rapid progress and present extent of federal encroachment on state
power. Growth of federal bureaucracy. A reaction against centralization
inevitable sooner or later. Adequacy of Constitution to deal with
changing conditions. The railroads and the trusts. Dangerous assaults
upon Constitution in field of social welfare legislation. Exercise of
police power a matter for local authority. Elihu Root's view. Outlook
for the future.

APPENDIX 153




OUR CHANGING CONSTITUTION




I

THE SALIENT FEATURE OF THE CONSTITUTION