Daily press. [volume] (Newport News, Va.) 1896-current, 1908-05-09

WASHINGTON. d. c.. May IAN
important legal proceeding Is to be In
stituted in . short time by the gov.
eminent against certain railroads, Of
the country to test the Constitution
ality Of the so-called commodity pro-
vision OF the Hepburn act-the rail-
road rate law.
The provision was drawn and enact.
ed into law to prevent railroads en-
gagged In interstate commerie from
having any interests, direct or inds-
rect, in the transportation Of coal or
other commodities. excepting lumber.
The law was directed at the coal
holding roads Of the country. and 1t
effects particularly the Lehfgh Val
ley, the Philadelphia and Reading, the
Erie, the Central Of New Jersey. the
Delaware, Lackawanna and Western
and q few other lines.
The companies which especially
come under the ban Of the law are
what are popularity known as the an.
thracite roads-those lines which
transport anthracite coal from the
producing fields in Pennsylvania to
other parts Of the country. Practi
cally all of these roads. more partic.
ularly those mentioned above, own or
control anthracite coal mines. In fact,
under charters granted to them. they
are permitted to enter into the bust
ness Of mining and selling coal. in
addition to doing a general railroad
business. .
Ths commodity provision Of the
rate law went into effect May l. Mos.
Of the railroads interested have ref,is.
ed to comply with the Law. maintain
Ing that its enforcement means ,
confiscation OF their property. which
is prohibited by the constitution. One
or two lines. heretofore Interested In
coal properties, have disposed qf their
coal holdings and have Indicated their
intention directly to comply with the
law. Most Of the lines. however. have
refused to make any disposition Of
their coal properties. because It prac.
tically Is . life or death matter with
them. Some Of the roads mentioned
In the list above do an enormous coal
business. II they were compelled to
dispose OF their coal properties. their
stockholders would be Affected very
seriously. Hence, they maintain that
the requirement Of the law Is uncon.
stitutional. a. ..--s-a
An effort was made In Congress to
secure q postponcment Of the efec-
tiveness of the law. but It was not
successful. The administration fav-
ored the postponement. because this
happens, on account Of the financial
strinsency Of the last six months. to
be a bad time for the railroads to
cessary to q turning over Of their coal
properties. even II they desired to do
that. IS
An agreement has been reached be-
tween the department Of justice and
the counsel for the coal roads BY
which . test suit b to he Instituted
by Attorney General BOuaparte to de-
termine tho constitutiouality q the
commodity provision Of the rate law.
The penalty for violation q the act
ID 5000 for each car Transported that
Ia not IN strict compliance With the
lav. II b evident that Il b . pretty
sesioas matter. because the absolute
snforcemept a The peaalty clause
would mesn bankTuptcy Tor some. 1t
least, Il the lines. They are % cer.
taiR. however, that Tie provisioo Is
uaconstisuticaal that they are willing
TO take the chanee a violating II.
The Interest Of the vArleus lines n
anthsscite psopersies amounts to nh.
Hons Of dollars. TIE prUpooed suit.
Therefore. Win be ~ treWea6oss1y ~
portaat fruQ aaanclal viewpeast %
IRON the viewpoint Of great indus-
try.