The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-05-03

Washington, May 3.-That the Com
modities clause Of the Interstate
Commerce act OF 1906. known as the
Hepburn rate law. is constitutions
was in effect declared today by the
supreme court of the United States
The decision was announced by Jus
ticc White The court reversed and
remandcd the decision of the United
States circuit court, but the only direc-
tIons were to enforce and apply the
statute as II is now constructed
Briefly summarized. the decision of
the supreme court. In the commodities
clause cases, holds the law to be con
stitutional. but 1t does not concede the
government side as TO the scope An
especial exception is as to the owner.
ship Of the stock OF the different cor
porations which II held did not con.
stitutc such ownership as would pro-
hibit transportation under the terms
OF the law.
II was also held that ownership of
the commodity applied only to- the
time OF transportation. If. before
transporting 1t, the railroad company
has in good faith parted with a COM
modify, 1t may carry II.
The principal point of the decision
was In relation to railroads holding
the stock of subordinate companies
and on that important point the finding
was favorable TO the roads.
Justice Harlan dissented on the
stock feature, but otherwise the de-
cision was unanimous.
The following is a summary of the
opinion in the commodities cases:
Il The claim of the government
that the provision contained in the
Hepburn act. June %. 1906, commonly
called the commodities clause. prohib-
Its a railroad company from maying
commodities In interstate commerce
because the company has manufactur-
ed, 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 relation oil con-
nection of carrier with the commodi-
ties at the time of the transportation
Is decided To be untenable 1t Is also
decided that the provision Of the COM
modities clause relating to interest
direct or indirect, does not embrace an
interest which carrier may have in
a producing corporation as the result
Of the ownership blythe carrier Of
stock in such corporation irrespective
OF the amount OF stock which the car.
rler may own In such corporation pro-
vided the corporation has been organ
lied in good faith.
The announcement as to the COM
modities clause was made in decid-
Ing the twelve injunction and man
damus cases brought by the govern
ment against the Delaware & Hudson.
the Erie. the New Jersey Central, the
Delaware & Lackamanna, the Penn
sylvania and the Lehigh Valley rail
roads. The cases came TO the court
from the United States Circuit court
for the eastern district of Pennsyl-
Sania, which decision was announced
by Judge Grew, attracting much at
tention. They originated in the circuit
court and. In Its petition, the govern
ment charged that the railroad com
panies In question were engaged In
transporting in interstate commerce
anthracite coal, mined oy themselves
on their own mines which are located
In Pennsylvania. The Hepburn act
makes II unlawful for any railroad
company to transport from any state
TO any other state or TO any foreign
country any article OF commodity. 9th
er than timber. manufactured. mined
OF produced by II, or under It's author
ity, or which il may own In whole or In
part, or in which II may have any in
terest. direct or Indirect, except such
articles or commodities as may be nee
essary and intended for its use In the
conduct of It's business as a common
carrier"
The circuit court decided against
the constitutionallty OF the provision.
because. as IT was alleged, il deprlves
the corporations OF their property with
ont dM process OF law. which is pro.
hibited By the fifth amendment To the
constitution. IL was also held by the
court that the clause, ,'"not directly but
Indirectly" works a practical conAsca-
ton of the property Of the railroad !:
hence the law was held to be Invalid
and I'm its nature and effect a discrim-
NATIVE prohibition"
The verdict was reversed by toJav's
decision.
New York, May 3.-PhiladelphIa and
Reading stock slumped 3 points on
the stock market on the announce.
ment OF the commodities decision and
the rest Of the market weakened mod.
clately. Before | o'clock Reading re-
covered it's loss and the whole market
became intensely dull Delaware and
Hudson lost l IL and Pennsylvania I