The Washington times., 1909-05-04
FORECASTS DEFEAT
FOR GOVERNMENT
Commodities Decision Be-
lieved to Affect Sab
Lake Cases.

Continued from First Page1
may organize holding companies wkich
may operate the mines. In either CsSe
the railroads can, as the law Is noS
construed, own the stock in the selling
81 the mining corporation without in
fraction of the law.
Among the radical publicists who are
anxious 10 restore tho law 20 its intend
ID efficiency. there IS talk OF urging
President Taft to press the matter on
Congress at the present session. and
send IN message asking amendment
along the lines which the Supreme
Courts construction indicates. But the
general expectation is that there viii be
no GGch recommendation at this time.
and that IL is uncertain whether the
president will even take such a course
next winter.
Is Confident.
Tho Attorney General, in a statement
sEalyzing the courts opinion. makes
clear that he has no doubt of the power
Of Congress to so farther and strength
en- the law At the points now found
weak. But il is regarded as probable
mat such legislation would not get out
OF the Interstate Commerce Committee
Of the Senate. even II it should safely
escape the committee opposition in the
House and pass the lower body.
This discussion OF the commodities
legislation has served to make more Ger
tain than ever that there will be a fight
OF some kind next winter between the
advocates and tbe opponents OF further
railroad legislator. The commodities
decision IS of the most tremendous inn
FoTtance If. as the New York CORPORA
ton lawyers declare. it has She effect
Of legalizinE the eutire holding, company
system OF handling great financial and
Industrial enterprises.
The Northern Securities case is not a
peraneA TO the one Just decided. In any
way. The Government now has a case
pending against the Union Pacific sys-
TEN in the effort 10 force the Hartman
roads to be separated The decision in
the commodities case is regarded as a
Precedent for giving Hartman the vic
tory I'm that case, ana likewise for very
possibly finding that the Standard or
company IS not an Illegal combination
in restraint of trade. These are some
ri the immense significations which may
be found in the decision of Monday.
Wickersham's Opinion.
Attorney General wickersham has
authorized the following statement, in
ferpreting the decision as he under
stands 81
Mr.. Justice Whites statement in
announcing the opinion Of the Supreme
Court in TIE commodities clause cases
IS, in effect, that a proper construction
% the so-callsd commodities clause is
that IL prohibits the transportation by
railroad companies only of commodi-
ties owned. In whole or in part by such
companies at the time of trsnsporta-
ton. commodities manufactured, mined,
or produced by them previous 10 such
does not apply TO transportation of
commodities owned by other corpora
tons n which the transporting rail-
read company has a stock interest, al
though Congress has the power to ex-
tend tin prohibition TO the iast-men-
toned cauAe If 1t shall see mt TO exer-
else It.
Congress Reccynized.
The recognition of the power in Con-
gress to extend prohibition TO conmod-
ities mined. manufactured. or produced
by a company in which the carrier is a
stock owner makes it possible for Con-
gress by further legislation to prevent
an evasion of the genefal prohibition Of
The statute, which might otherwise be
resorted 20. In other words, as I un-
derstand the opinion, IL is 10 the effect
that the question whether or not a car
rieT is prohibited from transporting
goods which il has produced or owned
depends upon whether e owns or has an
interest IN them at the time OF trans
poFtation. II 4 has, then the commod-
tiles clause prohibits the carrier from
50 transporting; although if that owner
ship IS only the indirect interest result
ing from owning capital stock Of a cor
poration which owns the goods, that
facf does not operate to prevent il from
transporting
Not Fully Sustained.
.-The decision does not sustain the full
contention of either the Government or
the carriers. II adopts a construction
Of the statute different from that con-
tended for by both the Government and
the carriers It, however, sustains the
principle contended for by the Govern
fnent, that Congress has power TO pro-
hibit a carrier from carrying, in COM
petition with other shippers. conmod-
tiles which the carrier owns or In which
prevent any carrier from Transporting
any commodity which It owns at the
moment Of shipment. and II confirms In
Congress power to extend that prohibi-
ton to the carriage Of commodities own
ed at the time of shipment by a corpor-
alton in which the carrier has a stock
Interest"