Waterbury evening Democrat., 1908-05-07
THE HEPBURN ACT
Government Will Test The Le. galily of this Railroad Law
 Now OD Books.

" 0ohAA6tO I- S.b N'ANs - ~N~ A~- portant legal proceeding is to be in stituted in short time by the gov ernment 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 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 holding roads of the country and it affects particularly the Lehigh Valley, the Philadelphia & Reading, the Erie, the Central of New Jersey, the Dela- ware, Lackawanna X Western, and d few other lines. The companies which especially come under the ban of the law are what popularly are known as the anthracite roads-those lines which transport anthracite coal from the producing fields in Pennsyl- vania 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 the business of mining and selling coal, in addition to doing a general railroad business.
 The commodity provision of the rate law went into effect on the 1st inst. Most of the railroads in- terested have refused 10 comply with the law, maintaing that it's enforce ment means a confiscation of their property, which is prohibited by the : constitution. Some lines, heretofore interested in coal properties, have disposed of their coal holdings and have indicated their intention strict ly to comply with the law. Most Of the lines, however, have refused to make any disposition of their coal properties, because it practically is life or death matter with them. Some of the roads mentioned in the list above do an enormous coal bus mess. If they were compelled to dis pose of their coal properties, their stockholders would be effected very seriously. Hence, they maintain that the requirement of the law is uncon- stitutiona1.
 An effort was made in congress to secure a postponment of the effec- tiveness of the law, but it 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 bad time for the railroads to make the financial arrangements ne- cessary to turning over of their coal properties even if they desired to do that.
 An agreement has been reached be- tween the department of justice and the counsel for the coal roads by which q test suit is to be instituted by Attorney General Bonaparte to determine the constltutionality of the commodity provision of the rate law. The penalty for violation of the act is S5O00 for each car transported that is not in strict compliance with the law. It is evident that it is a pretty serious matter, because the absolute enforcement of the penalty clause would mean bankruptcy for some. at least, Of the lines. They are so ceI- tain, however. that the provision Is uncmatitutional that they are willing to take the chance of violating it.
 The interest of the various lines in anthracite properties amounts to tens of millions of dollars. The proposed suit, therefore, will be as tremendous ly important from q financial view point as from the viewpoint of a great industry.