Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1908-05-16
RAILROAD RATE LAW
Its Constitutionality is Seriously
Questioned.
AGREEMENT BETWEEN PARTIES
Heavy Penalty For Its Violation
May Bankrupt Some Roads--A
Test To BE Made.

Test To Be Made.
Washington, d. c., May Am inn
porant legal proceeding is to be insti-
tuted In ashort time by the Govern
mnt against certain railroads OF the
country to test the constitutionalty OF
the so-called commodity provision Of
the Hepburn Act--the railroad rate
law.
The provision was drawn and en-
acted into law to prevent railroads
engaged in interstate commerce from
having any interests, direct or indi-
rect, in the transportation of coal or
other commodities. excepting lumber.
The law was directed at the coal hold
ing roads OF the country and It affects
particularly the Lehigh Valley. the
Philadelphia and Reading, the Erie,
the Central OF NewJersey, the Della
ware, Lackawanna and Western, and
few other lines. The companies
which especially come under the ban
of the law are what popularity are
known as the anthracite roads--those
lines which transport anthracite coal
from the producing fields in Penn
sylvania TO other parts OF the country
Practically all of these roads, more
particularly those mentioned above,
own or control anthracite coal mines.
In fact. under charters granted to
them, they are permitted to enter into
coal, in addition to doing general
railroad business.
The commodity provision Of the
rate went into effecN on the 1st. inst
Most of the railroads interested have
refused to comply with the law. main
tanning that its enforcement means a
confiscation of their property, which Is
prohibited b. the constitution. One or
two lines, heretofore interested in coal
properties, have disposed OF 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 II practi-
cally is a life or death matter with
them. Some of the roads mentioned
in the list above do an enormous bus
ipoc To <bax u,arr ,c,,,~allnd ~ l;e
pose of their coal properties. their
stockholders would be affected very
seriously. Hence. they maintain that
the requirements of tn law is uncon-
stitutional
An effort was male in Congress TO
secure postponement Of the effec-
tiveness of the law, but 1t was not
successful. The administration fav.
ored the postponement because this
| happens, on account of the financial
stringency of the last six months. to
| be a bad time for the railroads to
make the financial arrangements
necessary to "a turning over OF their
properties even If they desire to do
| that.
An agreement has been reached be-
tween the Department Of Justice and
the council for the coal roads by
which a test Is to be instituted by
Attorney General Bonaparte to deter
mine the constitutionality of the com
modify provision OF the rate law.
The penalty for violation Of the act Is
Sc. 900 for each car transported that
| is not in strict compliance with the
law. 1t is evident that it is a pretty
serious matter, because the absolute
enforcement of the penalty clause
would mean bankruptcy for some, at
least, II the lines. They are so GER
tan. however, that the provision is
unconstitutiona that they are willing
TO take the chance of violating 1t.
The interest of the various lines in
anthracite properties amounts to tens
OF millions of dollars. The proposed
suit, therefore, will be as tremendous
ny important from financial view
point as from the view point OF
great industry.