The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-05-02
WOULD GIVE ROADS
MORE TIME TO SELL
Insists That on Account OF Panic,
the Railroads Have Been I'm
able to Dispose OF Their
Holdings in Mines
and Kindred
Properties.


resolution to- suspend the
operation OF the commodity clause of
The railroad rate law. which clause be-
came effective to-day. Under the OPP
Grafton Of this clause railroads would
be liable to heavy fines IL they under
took to haul in interstate commerce
any articles or commodities produced
from manufactures or mines in which
the railroads have an interest. THE
railroads contend that they have had
Insufficient time to divorce themselves
from the ownership OF such properties,
or to test the constitutionality OF law
compelling them to dispose OF such
property interests.
The resolution originally proposed to
extend the time for the commencement
OF the operation of the commodity
clause until May !. 1910. but the SEN
ate Interstate Commerce Committee
changed the date to January !, 1910.
Culberson objects.
When the measure was called up sew
nral days ago 1t went over under OBJ
lection from Mr.. Culberson, the minor
ity leader OF the Senate, but 1t was
taken UP to-day by vote OF the Senate.
Mr. Culberson had refused unanimous
consent. and he was first recognized
to speak against the resolution. He
reasons why the extension should be
made, and he called upon Chairman
Elkins for an explanation. MIR. Elkins
answered that the condition OF the
country demands delay In the opera
lion OF the law-that the railroads have
been unable to find capitalists to take
over the coal lands owned by the roads.
For this situation he blamed the recent
panic, and he said that had IL not been
for this money shortage and business
depression the railroads would have
been able TO comply with the law. He
called attention 10 the fact that the bill
did not repeal the law, but only sus-
pended 1. temporarily.
The. Lackawanna and the Reading
railroads were specially chartered by
States to own coal lands. the Senator
said. and he showed that the properties
were mortgaged and remortgaged, and
that difficulty had been experienced in
separating these obligations. Other rail-
roads owning coal lands were in the
same position. he declared. Mr.. Nelson
said It appeared that the railroads were
against complying with the law. and
that they now invoked Congress to en-
act such legislation. He expressed the
opinion that the railroads were not
entitled TO any special consideration.
McCumber's Plan.
Mr. McCumber construed the COM
modify clause as not preventing the
railroads from owning coal mines, from
mining the coal. or selling the product
of the mines. He said that the coal
could be sold at the mine to indepen-
dent dealers, who could ship the coal
over the railroad wherever they pleased,
and there would be no violation of the
law.
Mr.. Warren said that such a transac-
zion would be a perfectly patent eva
sion of the law.
Mr.. McCumber admitted that deal
of this character might be open to
suspicion, but he declared there would
be no technical violation OF the law.
Senator Elkins was permitted to per-
feet his resolution in accordance with
recommendations from the committee
and the Interstate Commerce Commits
sion. A large number of amendments
were then offered to the resolution
Mr.. Fulton offered an amendment re-
nuIring the railroad to keep on file all
schedules. including joint rates.
Mr.. Foraker previously had intro-
duced an amendment as a substitute
for the resolution, which provided that
. the commodity clause should not be
retroactive, or. in other words. would
rot apply to railroads hauling products
Of mines or manufactures which were
owned by the railroads at the time the
law was passed
Mr.. Hepburn offered an amendment
to the resolution which provides that
railroads shall not charge a greater
Tariff for short haul than for long
haul. He said that the evils which
have grown UP under these practices
have attracted the attention OF the
rountry, and unless they are needed
legislators would hear from them at the
next election.
All OF the amendments We're ordered
printed, and the resolution went over.