The free lance. (Fredericksburg, Va.) 1885-1926, 1909-05-06

Ohocf OSStetOn ~ ONttco SNaNSe Sl-
prere Court Anthracite Roads May
Transport Coal n Sold to Somebody
Else-Msy hold Stock In Coal Com
psnies.
Washington. May at has been
many a day since n decision OF the
supreme court OF the United States
has been received with 50 much in
terest as was manifested in the de
cision OF that court in what are known
as the commodities clause cases.
affecting the anthracite coal carrying
railroads These cases had been de-
CiGed by the United States circuit
court for the eastern district of Penn
sylsauia faNoraoiy 70 the railroads in
that The clause of the Hepburn rate
Law. which prohibits interstate rail
roads from carrying commodities
manufactured. mined or produced di-
reotly or ntirectly by the roads was
declared constitutional. and the
general impression had been that the
decision would De affirmed by the su.
preme court When. therefore there
was = reversal instead OF an afirms-
tion. the interest was much magnified.
when again IL was found that the re
versal Was based on technical grounds
and that the effect was really favor.
able to the railroads. sentiment took
another turn. and those who had been
anXiously awaiting the announcement
OF the result found themselves much
puzzled.
Justice Whites Decision.
Analysed. Justice Whites decision
IS that congress did not transcend its
constitutional authority In the enact.
ment OF the commodities provision.
but on the other hand It was held that
the governments construction Of the
provision had been entirely too com
prehsnsive. AS construed by the court.
the sole object Of the clause Is 70 pre-
vent carriers from being associated
in interest with the commodities trans.
ported a. the time Of transportation.
hence that the law only prohibits the
transportation OF articles when they
have been produced by a railway COM
pAny. which has not IN good faith
parted with them. when the company
owns or controls. the commodity 70 be
transported. and when the company
has an interest direct or Indirect in
the commodity In a legal sense. II
was especially held. however. that the
prohibition does not apply to the own
ership OF stock in a producing com.
pany. but that carrier may own stock
in such a company and at the same
time transport the product OF that
company.
Railroads Can EVsde the Law.
Summed up. the act only compels
companies TO disassociate themselves
from the products they carry 1t thus
appears. FIRST. that the commodities
clause is a vital and operative statute
with respect 10 all products. such as
coal. which the railroad companies
actually own at the time OF transpor,
tation. and that the railroads must
sell such products 70 somebody else
before they can lawfully ship them
and second. that unless the act Is
promptly amended so as to include
stock ownership. the railroads can es
cape the law entirely by converting
their direct ownership OF coal proper
ties into stock ownership by the or
ganizatiOn Of subsidiary coal com
panies
The effect OF the decision under ex
listing conditions is favorable 10 tn,
railroads and the government lost OF
practically all points except In the sus
tsntation Of the principle involved.