Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-23
LUMDERMEN LOSE A POINT
Referee Post Rules Against Them on TAX
ing Testimony Of EOn-reSidsnts.
INTERSTATE COMMERCE NOT INVOLVED
Federal Law Does Not Prevent state
from Protecting It's own citizens
from Acts of other Ciu-
sens of the state.
lrrom a stan corresnondent.l

LINCOLN, Jan. 22-(special )-Referee
A. NJ Post of the supreme court has ruled
in favor OF the state of Nebra ska on an
objection raised by the lumber dealers that
the courts of the United States are given
exclusive jurisdiction of prosecutions such
as the suit Of the State OF Nebraska
against the Nebraska Lumber Dealers as
ISOLATION under the antitrust laws Of Me-
braska. The lumber dealers raised the OBJ
lection that the transactions of this nature
involve Interstate commerce within the
meaning OF the Sherman antitrust law.
The objection. in the opinion OF the referee
involves the validity of the Nebraska anti
trust laws. He Is of the opinion that con-
tgress has not by means OF the Sherman act
shorn the state of the power to prohibit
combinations in restraint of trade insofar
as such prohibition may operate upon in
terstate commerce.
The attorneys for the state had planned
TO take the testimony Of wholesale lumber
dealers outside of Nebraska as TO their
transactions In connection with the alleged
violations of the antitrust laws of Me-
braska- Their method of dealing with Ne
braska lumbermen is to be the subject of
Investigation. Under this ruling OF Referee
Post the state will be able to make the de-
sired investigation.
Referee Post says:
To congress has been committed, Dy the
constitution OF the United States, the ex-
elusive power TO regulate Interstate COM
.meroe, including transactions of the nature
1t is, however, firmly settled that the states
have not surrendered their power to sub
serve by appropriate legislation the welfare
of their people, although such legislation
may operate, incidentally on interstate
commerce, The federal courts, although
ell questions OF their own jurisdiction. have
been ever mindful of the rights of the
fional powers.
~ True Test Of validity.
The true test of validity is said to he in
every such whether the particular
statute IL in fact an exercise Of the re-
serve power, of the state for the protection
and welfare of its people, or the protection
of Interstate commerce under the guise of
. mere police measure. The Nebraska anti
trust law, tested by this rule, appears TO
OF the state and in no just sense regula-
Ition Of interstate commerce. 1t imposes no
state commerce and does not accordingly
conflict with any constitutional provision
or any act OF congress covering that sub
the ordinary prosecution for conspiracy,
the gravanien of the action being the al
p evidenced by any overt act pertinent to
the charge and its competency is not af-
fected, by the fact that such act may have
been committed in foreign Jurisdiction.
Defendants argue further that the ques-
ton here involved is foreclosed by the de-
cision OF this state In re state versus ele-
therein mentioned is in connection with the
the Jurisdiction OF the court over the SUBJ
Jsct of the action The application of the
is true become legitimate subject for
consideration IN connection with the merits
of the cause, but it is not involved in the
present contention.
Lumbermen I'm Convention.
The Nebraska Lumber Dealers associa-
ton began its annual meeting here. this
afternoon and will hold over for another
day. A feature OF the session this after
noon was the. address OF G. w. Hotchkiss.
Secretary Of the Illinois association. who
attempted to show by statistics that the
high prices OF lumber is natural ana not
Cue to any trust among the dealers.
Independent Phone Men in city.
The independent telephone men are here
In their annual meeting. and while the
crowd here is. large many more are ex-
pected tomorrow. The hotels are full of
exhibits OF manufacturers r. e. Mattison
secretary, reported on the growth of the
business during the last year, and President
Mark Woods delivered his annual address
this afternoon.
The legislative crowd and those attend
ing conventions has overcrowded the hotels
and tonight dozens OF people were turned
away from the hotels and had to, seek a
place TO sleep n the residence parts OF
the city and at private rooming houses
which are already crowded to the limit
One hotel clerk said he had turned away
hundreds.
Commercial Club Convention.
Under the arrangements OF the executive
committee the annual meeting of the State
Association of COMMERCIAL Clubs is called
TO meet in the city OF Lincoln February
IL and II. A committee is at work upor
a program that viii discuss some OF tn,
most important questions of the day fol-
oites and towns and the business inter
ests OF all localities.
A representative of the government viii
come direct from the Department OF ARri
culture at Washington TO discuss the "Goot
Roads question. other speakers OF stat,