Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1909-05-06
RATE LAW IS VALID.
HEPBURN COMMODITIES CLAUSE
CONSTITUTIONAL, SAYS THE
SUPREME COURT.
MUST ENFORCE THE STATUTE
Roads Win Point in Decision That
They May Own Stock in Industries
for Which They Are Carriers
Announcement Is Welcomed.

for Which They Are Carriers
Announcement Is Welcomed.
Washington, May 4.-That the "com-
modities clause" of the interstate
commerce act of 1905, known as the
Hepburn railroad rate law, is consti-
tutional was yesterday in effect de-
clared by the supreme court of the
United States. The decision was an
nounced by Justice White. The court
reversed and remanded the decision of
the United States circuit court, but
the only directions were to enforce
Strued.
Briefly summarized, the decision of
the supreme court in the commodities
clause cases holds the law to be con-
stitutional, but it does not concede the
contentious of the government as to
its scope. An especial exception was
as to the ownership of stock in a diff
ferent corporation, which it was held
did not constitute such ownership as
would prohibit transportation under
the terms of the law. 1t was also held
that ownership of the commodity ap-
plies only to the time of transporta-
ton.
Roads May Hold Stock.
If before transporting it the railroad
company has in good faith parted with
commodity it may carry it. The prin-
cipal point of the decision was in re-
lation to railroads holding the stock
OF subordinate companies, and on that
important point the finding was favor
able to the roads.
Justice Harlan dissented on the
stock feature, but otherwise the deci-
sion was unanimous.
The announcement as to the COM
mOdities' clause was made by the gov
eminent against the Delaware & Hud-
son, the Erie, the New Jersey Central,
the Delaware & Lackawanna, the
Pennsylvania and the Lehigh Valley
railroads. The cases came to the court
from the United States circuit court
for the Eastern district of Pennsyl-
yania, whose decision as announced by
Judge George Gray in 1908 attracted
much attention.
Originate in Circuit Court.
They originated in the circuit court,
and in. it's petition the government
charges that the railroad companies in
question were engaged in transporting
in interstate commerce anthracite
coal mined by themselves in their
own mines, which are located in Penn
sylvania. The Hepburn act makes it
unlawful "for any railroad company to
transport from any state to any other
state or to any foreign country any
article or commodity other than tim
Der manufactured, mined or produced
by it, or under it's authority, or which
it may own in whole or in part, or in
or indirect except such articles or
commodities as may be necessary and
intended for it's use in the conduct of
it's business as a common carrier"
The circuit court decided against
the constitutionality of the provision,
because, as it was alleged, it deprives
the corporations of their liberty and
OF property in a way that is prohibit
ed by the fifth amendment to the con-
stitution. 1t was also held by that
court that the clause mot indirectly
but directly" works practical confis-
cation of the property of the railroad;
hence the law was held to be invalid
and "in it's nature and effect a discrim-
NATIVE prohibition"
Hold Claim UntenabIe.
The following is a summary Of the
opinion in the commodities cases:
1.-THE claim of the government that
the provision contained in the Hep
burn act, approved June 29, 1906, COM
monty called the commodities clause,
prohibits railway company from NOV.
ing commodities in interstate com.
merce because the company has manu-
factured mined or produced them, or
owned them in whole or in part, or
has had an interest, direct or indirect.
in them, wholly irrespective of the re-
lation or connection of the carrier with
the commodities at the time Of trans
portation, is decided to be untenable.
1t is also decided that the provision of
the commodities clause relating to in.
terest, direct or indirect, does not en-
brace an interest which carrier may
have in producing corporation as the
result of the ownership by the carrier
of stock in such corporation, irrespec-
tive of the amount of stock which the
carrier may own in such corporation,
provided the corporation has been or
ganized in good faith"
Panama's First President Dead.
d-nr