Los Angeles herald., 1906-07-10
RAILROADS MAY CONTROL LUMBER PRODUCTS
Areaay the Interstate
"Jokers" That May lnvaidate the Statutes
N nrcsrnn dnn hinrn-T

L. Washington Corrcspon
IN provision in the new railroad
RUE regulation law, ostensfbIv DESIGNED
10 prohibit railroads from engaging i'm
auy other business than that of trans
poil'tion' the Interstate commerce
commission has found a loophole which
unless closed by the courts will render
the prohibition innocuous
10y the act, us approved bv President
NooseNelt II Is unlawful for a railroad
| lV transport any article or commodity
olner than timber and manufactured
products thereof, manufactured. mined
or produced by it or under its authority.
or WhIch 1t may own in whole or i'm
parI or IN which II may have any in
terest directly or indirectly.
An investigation the Interstate com
meroe commission Is making into the
relations between railroads and coal
companies has disclosed that there are
only Two railroads, for example. which
actually own anthracite mines. and
that the charters they lave received
from states wherein they are incor-
ported specifically permit such owner
snip. In the cases of other railroads
the corporations do not own mines or
even the stock of companies operating
then. The stock is held by the officers
Of the roads.
Not Barred From Stockholdinu
FROM preliminary consideration
winch Commissioner Knapp and his
associates have given the law. thev can
find nothing which prohibits officers of
railroads from owning stock i'm any en-
lerprise which ships over their re-
spective lines.
Nor is this the only loophole the
law mas provided as way out from
the prohibition fixed bV congress The
Tribune correspondent has received the
lolloWinS telegram from Eastman.
Gardner & Co., lumber manufacturers
at Laurel, MINI:
CONCERNING manufacturing activ-
llles under the rate regulating law, can
you imagine any abuse or graft that
mas been uncovered by Investigation
INTO railroad matters under this piece
Of specific exemption?
AS to the timber and manufactured
products, therefore, let us cite an ex-
ample: 1t. is unlawful for railroads to
.ay or give rebates to individuals or to
private corporations, but it is entirely
lawful for one railroad to give rebates
TO another railroad SO it often hap
pens that railroad upon which GER
am commodity tonnage originates re-
'elVes not only its allotted share of
tlVision of the through rate to a dis
ant dtstiration but frequently some
IF the intervening roads concede or give
up part of their allotted division of the
ate to originating lines rather than
laVe the shipment routed over some
Ither lines by which they might lust as
Well be routed. This amounts to re-
)ating.
May Engage in Other Lines
In the rate BILL it seems to us. the |
lause eXempting timber and the man. |
fractured products thereof in the sec |
ion prohibiting railroads from owning |
commodities transported, will enable |
Dads TO engage in various industries |
md have greater advantages over the |
utputs of private concerns and manu-
act urlng corporations, viz: Lumber,
cooperage, wood pulp, sashes
nd doors, matches. boxes and crates.
askets, excelsior, charcoal, naval stores
pitch, tar and turpentine), wood al
ohol (methyD, grain alcohol (ethyD, |
md many other industries-possibly |
-ehicles, wagons, wheelbarrows, etc.
do not permit the grain alcohol |
ethyD items to disturb you. At Hat |
iesburg, Miss. a concern is making |
'thyl from sawdust under patents of a |
icrman chemist. 1t is of extremely |
me qudlltS just as sweet as any made |
rom grain, and can be used for any |
purpose that grain alcohol is used for.
Now, doesn't that open up an extern
i've vista of possibilities for railroads
Who have the right to own and manu-
acture timber and various products
hereof? DO you not see what tremen-
ous advantage such a combination
would have over any Individual or
manufacturing corporation, and will
Ou be surprised to see syndicates buy
ng up small incorporated railroads
ere and there in order to expand them
lto great manufacturing corporations
With privileges that may work destruc-
ion to competitors who have no rail-
cad combination attachment? Plea Sc
isCuss this question with leading mem
ers of the house and senate and with
PRESIDENT Roosevelt -
.r1ha tnlapran1 which is QUO Of a nun |