New-York tribune., 1908-05-02
ROADS LIABLE TO FINE
THE COMMODTTY CLAUSE.
Took Effect Yesterday-Resolution
to Suspend 1t Discussed.
From The Tribune Bureau.I

From The Tribune Bureau.I
Washington. May 1.-The Senate spent the
greater part OF uo-days session debating the Elkns
resolution suspending for twenty months the
modify clause Of the railroad rate law. The
pracucahility Of passing this resolution de-
Cided by the leaders some time ago but Sen
ator aElkns was confident that he could obtain
the approval Of the resolution that it per
mitted to up to-day on a vote Mr.. Elkins.
who apparently supposed ne would encounter
serious difficulty the resolution was seriously
taken up, asked that il be read order that it
might be perfected. and then the hoodgates o
oratory and legislative amendment were opened
Senator Fulton offered his bill conferring on the
Interstate Commerce Commission authority 10 pass
On all proposed increases of freight rates before
they 20 into effect as an amendment. This caused
considerable debate. then Senator Hepburn
offered his resolution. which seeks enforce what
is known as the long and short haul clause
Senator Culberson proposed his shortage bill
amendment. and Senator Foraker gave no.
tee OF substitute Tor the Elkins resolution which
he intends 10 offer. Before any vote was reached
II had been proposed to repeal and re-enact the
entire fourth and sixth sections the interstate
commerce act. and there is still follow.
The leaders regard to-day's debate as demonstrat-
ing the accuracy Of their contention that effort
amend this law will almost intermin-
able debate and is more than likely TO result in
effort 10 reframe the law. They do not expect
that final action the Elkins resolution will be
reached st this session. but they glad the de-
hate occurred as it demonstrates how impossible
81 would be 70 the Hepburn Civic Federation
bill which would meet with similar fate in the
Senate
The commodity clause went into effect to-day and
railroads. therefore. which haul in interstate com
-,erce products Of mines or manufactures in
which the carriers interested liable maxi
mum fines Of $500 for each offence The Elk5ns
resolution gives the railroads twenty months addi-
tona in which to divorce themselves from these
properties on the ground that the financial condi-
ton Of the country has been such that the rail-
roads have been unable ind buyers and TO settle
such questions o. joint ownership involved
II mortgages covering both the railroad property
ard mining or manufacturing property
When the Elkins resolution was called up several
days ago il went over under objection from Mr.
Culberson. the Democratic leader. but il taken
Up to-day by Of the Senate. Mr.. CuIberson
had refused unanimous consent. and he first
recognized 10 speak against the resolution. He
said that the committee had given no reasons why
the extension should be made. and he called on
Chairman Elkins for an explanation
M. EIkns answered that the condition Of the
country demands delay in the operation Of the
lar and that the railroads have been unable to find
capitalists TO take over the coal lands owned by
them. For this situation he blamed the recent
panic and he said that had II not been for the
money shortage and business depression the rail-
roads would have been able 10 comply with the
He called attention 10 the fact that his
luton did repeal the clause but only suspended
L The Lackawanna and the Reading railroads
were especially chartered by the states coal
lands he said. and he showed that the properties
were rnortgaged and remortgaged. and that diff
Guilty had been experienced in separating these OBJ
legations. Other railroads owning coal lands were
IN the same position he declared.
Nj Nelson said Il appeared that the attitude Of
the railroads was against compliance with the law
and 10 Htgate TO the power of Congress TO enact
such legislation. expressed the opinion that the
railroads were not entitled 10 any special consdera-
ton SO long they undertook 10 attack the
validity Of the law he declared. Congress was
under obligation 10 favor them
M McCumber construed the commodity Clause
not preventing the railroads from owning coal
mines. mining Tie coal selling the product Of
the mines. He said the coal could be sold al the
mine n independent dealers. who could ship il
over the railroad wherever they pleased and there
would be violation Of the law
NJ. Warren said that such a transaction would
be q perfectly patent evasion Of the law.
NJ NCcumber admitted that a deal Of this char
acter might be open TO suspicion, but he believed
there would be no technical violation Of the law
Senator Elkius was permitted 10 perfect his reso-
luton accordance with recommendations from
the committee and the Interstate Commerce Com
mission
Nj. Fulton then offered his amendment recurring
the railroads TO keep on file all schedules including
Joint rates Mr- Foraker previously had introduced
an amendment which provided that the commodity
clause should not apply railroads hauling prod
-Crs Of mines or manufactures which owned
by The railroads a the time the law passed.
N Heyburn offered his amendment providing that
-s roads shall not charge a greater tariff for a
short haul than for q long haul. He said that the
evils which have grown UP under the discrimina-
tons have attracted the attention OF the country.
unless they are needed legislat tors would hear
from them the next election.
Al the amendments were ordered printed and the
resolution went over
Senator Carter gave notice that he would address
the Senate in support Of his postal savings bank
bill on THURSDAY, and Senator tiallinEer obtained
unanimous consent for consideration Of and a vote
his child labor bill for the District of Columbia
before adjournment on "Wednesday