The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1909-05-06

- W
Washington. May b,-That the com
tnojitieS clause of the Interstate com
merce act Of 1906, known as the Hep
burn railroad rate law. Is constitution
al, was in effect declared today by the
supreme court of the United States.
The decision was by Justice
White. The 90 reversed and re-
manded the decision OF the United
States circuit court, but the only direc-
lions were to enforce and apply the
statute as 1t is now construed.
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
contention of the government as to it's
scope. An especial exception was as to
the ownership of stock in a different
corporation which held did not consti-
tute such ownership as would prohibit
transportation under the terms of the
law. It was also held that ownership
of the commodity applied only to the
time of transportation. If before
transporting 1T the railroad has in good
faith parted with a commodity, 1t may
carry it.
One Favor to Roads.
The principal point Of the decision
was In relation to railroads holding the
stock of subordinate companies, and on
favorable to the roads.
Justice Harlan dissented on the stock
feature. but otherwise the decision was
unanimous.
The announcement as to the COM
modtties clause was made in deciding
the IL injunction and mandamus
cases brought by the government
against the Delaware & Hudson, the
Erie, the New Jersey Central, the Del
aware & Lackawanna, the Pennsyl-
vanta and the Lehigh Valley railroads..
The cases came to the court from the
United States circuit court for the
eastern district of Pennsylvania, whose
6anfV3nr q q Qnn01,oon6 n&rE T,,Ion (Sno~-n
Gray in 1908 attracted much attention.
They originated in the circuit court. In
Its petition he government charged
that the railroad companies In question
state commerce anthracite coal, mined
by themselves in their own mines,
which are located in Pennsylvania.
The Clause in Question.
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 com
modify, other h timber, manu- !:
featured, mined or produced by it, (:
or under its authority or which it !:
may own In whole or in part, or /:
in which it may have any inter- !:
est, direct or indirect, except such ::
articles or commodities as may !:
be necessary and intended for its !:
use in the of its business ]:
as q common carrier" I:
The circuit decided against the con-
s~titutionality of the provision, because
as 1t was alleged, 1t deprived the cor
porations of their property without due
process Of law, which is prohibited by
the ffth amendment to the constitu-
ton.
1t was also held by the court that the
clause, not directly but indirectly,
works a practical confscation of the
property of the railroads: hence the
law was held to be invalid and In its
nature and effect q d~iscriIninatiye pro-
hibition.''
The verdict was reversed by today's
decision.
Summary of Opinion.
The following is a summary of the
opinion in the commodities cases:
First-The claim of the government
that the provision contained In the
Hepburn act approved June 20, 1906.
commonly called the commodities
clause. prohibits a railroad company
from commodities In Interstate COM
-nerce because the has manu-
featured, mined or produced them, or
owned Their in whole or in part. or has
had any interest direct or indirect in
them, wholly irrespective OF the rela-
ton or connection of the carrier with
the commodities at the time of the
transportation Is decided to be I'M
tenabIe. It is also commended tina the
pFOf iSloA u Lie Co~ulIiouilles ClauSe
relating to interest. direct or Indirect,
does not embrace an interest which a
carrier may have in a producing COR
poration as the result of the owner
ship by the carrier Of stock in such
corporation irrespective Of the amount
OF stocks which he carrier may own
In such corporation provided the cor
poration has been organized In good
faith.
notwithstanding the construction
placed by the government uDOu the
commodities clause, 1t Is decided that
the clause. when all its provisions are
h-armoniously construed as solely for
its object to prevent curriers' engaged