The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-16
QUESTIONS RAISED
BY THE RATE BILL
Does the New Law Interfere
With Property Rights of
Companies?
A VERY IMPORTANT
ISSUE TO BE DECIDED
All Provisions of the Act Are
Not Operative Au-
gust %.

The new Interstate commerce law,
which comes operative, so far as its
| general provisions are concerned, on
August 2S, is still a subject of much
discussion among the controlling Off
cials Of the traffic and legal depart.
ments of the great railroad systems of
the country, and will be for n long
sions have been passed upon by the
high judiciaries of the land Two OF
the provisions of section / however, do
not go into effect on the date named.
One is that part Of the section restrict
ing free Interstate transportation,
which docs not become operative until
the date specified in the paragraph,
January /, 1907; and the other is that
relating to railroad company trans
porting any commodity manufactured,
mined or produced by 1T, other than
timber and its manufactured products,
unless intended for its own use, which
is not effective until May !, 1908.
The latter provision, according to
The opinion of eminent legal talent,
raises wide and serious question. Its
full terms arc as follows:
From aud after May Arst, nineteen hundred
and eight. 1t shall be unlawful for my rail.
road company 90 transport from any State.
Territory, or the District OF Columbia 20 nny
other State, Territory, the District OF Co
or commodity other than timber and the
manufactured products thereof, manufac
tured, mined, or produced by IL, or under
its suthority, which il may own in whole
or in part, or in which il may have any
interest direct or indirect cxcep, such arti
clos or commodities hs may be necessary
aud intended for its in tho conduct Of
It's business as common carrier,
Just why timber and its manufac-
tured products are exempt from the
exclusive terms Of the measure is not
clearly apparent to the legal student of
the act. The fixing of the date so far
ahead when this provision shall apply
is evidently intended to permit railroad
companies who have holdings Of this
character a sufficient amount of time
to dispose of them.
Serious Phase Of Law.
But the serious phase of this part of
the enactment is that it raises the ques-
tion whether or not it is an attempt by
act of Congress to deprive railroad
companies from the enjoyment of the
rights of property-an interference
States in which they operate. The
point which will, in all likelihood, be
raised Is that assuming a railroad COM
pany had been given chartered powers
in certain States to traffic in coal, for
instance, as commercial enterprise,
would not this provision of the act be
violation OF the terms of that charter
and direct interference with property
rightsF Railroad companies have char
ters containing such provisions, and to
them the section is a curtailment of
their legal rights. Eminent lawyers
contend that this is a serious issue
which the new enactment raises, and
one fear-reaching in its scope and eff
feet.
1t has been urged, from the stand
point of the public, that with the rail
road companies eliminated from this
field of commerce, the price of coal
might be affected, or that the dealers
might combine at any time to advance
the price of the commodity; but it is
pointed out that, 80 far as the latter
contention is concerned, the antitrust
law enforced would be sufficient COR
IecflYe