Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1909-05-03
COMMODITY CLAUSE
IS UPHELD
Railroads Must Go
Out of Mining
Business
JUDGE GRAY REVERSED
Tariff Discussion Resumed
in Senate---CommerciaI
Treaties Expire.

Washington, May 3.--In the com
modities clause of the Hepburn rate
law, the Supreme Court of the United
States today reversed the decision ol
Judge George Gray in the U. S. Cir
cult court for Delaware and uph0lds
the constitutionality Of the act. The
original action was begun by the gov
ernment against a number of Eastern
railways under the commodities clause
of the rate act, which forbids, rail
way from carrying timber, coal or an,
other commodity which it controls
other than for it's own use. The roads
resisted and Judge Gray held against
the government, deciding that the law
is unconstitutional and worked prac
tical confiscation of property. This
the Supreme court reverses. The de
cision holds that the clase is a regu
lation of commerce which Congress
has right to enact
The court holds that the railways
will not be restrained from holding
stock in corporations producing the
commodities which they carry ant
that if they do control commodity
and sell it before shipment they may
carry it if they do so in good fait1
and have parted with it before en-
gaging it for shipment.
Termination Of Commercial, Agree
ments.
Washington, May 3.-The termina
tion of commercial agreements will
a number of other countries made ir
conformity with section three of the
Dingley Tariff act is announced by
the State Department. The action il
based on the intent and wish of Con
gress as shown by pending legislation
Formal commercial agreements I'm
der the Dingley act exists with Grea
Britain, Germany, France, Italy
Spain, Portugal and Netherlands
while formal understandings, thu
basis of which are Presidential proc
lamations have been entered in witt
Switzerland and Bulgaria
The Tariff Debate.
Washington, May 3.-The lumber
schedule and the income tax amend
ment of the tariff bill, received spe
cial attention in the Senate today
Senator Piles replied to McCumber''
free lumber speech and will presen
the views of the lumber states of th'
northwest and Pacific coast. Senate
Borah will maintain the constitution
ality of the income tax.
A Plea Against Free Lumber.
Washington, May 3.-A plea agains
free lumber and story Of orienta
labor figuring in the difference of cos
between the two sides of the Canadian
boundary line was the substance of 6
speech in the Senate today by Senator
Piles of Washington.
Mr.. Piles contended that tariff suf
ficient to save the American manufac
turer the United States market, fo1
his low grade lumber and shingles viii
make it possible for him to utilize
every part OF the tree. If this market
were taken possession of by the Cana
dian manufacturer, the American lum
bermen. he said, would be obliged tt
leave large per cent of the tree ir
the forest, a total loss and constant fire
menace to the standing timber.
In Washington. he pointed out, lum
Der is the principal industry, employ
ing 10000 men with average annua
wages exceeding $60,0O0,0O0. The
Washington state legislature. CONNER
cial bodies, labor unions and bank
ing interests have urged the retention
of the duty on lumber and increased
duty on shingles. The difference in the
cost of stumpage in British Columbia
and nj Washington, he said, was about
$1.50 per thousand. While the shingle
industry had decreased in Washington
since 1905 1t increased in British Co
lunlbia phenomenally.
There was, he said, material dif
ference in the cost Of labor, owing
principally to the use of upward Of II
per cent oriental labor in British Co
lumbia. Despite oriental labor mills ol
equal capacity on both sides of the
boundary employ practically the same
number Of men. There was differ
ence of approximately 81 per thousand
on water freight rates to California
ports, as British Columbia can ship In
foreign vessels while washington mus
use American bottoms in the coastwise
trade. Logging also costs more on
this side, 1,1O0 miles Of logging rail-
road being necessary in Washington.
Free lumber, he said, would stimu
late the development Of Canadian
provinces and be detriment to the
business interests of this country. Mr.
Continued On Page Eighty