The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-05-04
JUSTICE HARLAN DISSENTS
ON The STOCK FEATURE
Decision Of Circuit Court Reversed
and Remanded.
A. to the RaiIroads HoIding stock Of
Subordinate Companies, the Find
inss Of the Court Wac
Favorable to the
Roads.


many a day since decision Of the SUI
preme Court Of the United States has
been received with SO much interest
as was manifested today in the de-
cision Of that court In what are now
known as the Commodities clause"
cases affecting the anthfacite coal car
rying railroads.
These cases had been decided by the
United States Circuit Court for the
Eastern District of Pennsylvania. ia
vorably to the railroads. in that the
clause OF the Hepburn rate law. which
prohibits interstate railroads from car
rying commodities manufactured. mined
or produced directly or Indirectly by
the roads. was declared unconstitution-
al. The general impression had been
that the decision would be affirmed by
the Supreme Court. when, therefore.
there was a reversal instead of an af-
firmation. the interest was much mag
nifled. =
When 1t. was found that REVERSAL was
based onA technical grounds and that
the effect was really favorable to the
railroads, sentiment took another turn
and those who had been anxiously
awaiting the announcement Of the re-
suit found themselves much puzzled.
The courts judgment was announced
by Justice White. who, while he read
from an elaborate printed opinion. de-
clined to give anything more than q
summary. showing the net result of
the courts finding, There was also
surprise over the fact that there were
no elaborate dissenting opinions and
in, indeed, only one dissenting opinion
of any kind. Because OF the courts de-
lay In announcing its conclusion, IT was
generally supposed that the court
would be found to be much divided.
The dissent was announced by JUS
~~fo @s-t.s r. 4su.R Ia q
ed that he did not follow the conclu-
sion of the court on the point that the
law does not prohibit the railroad own
ership OF stock in commodities produce
ing companies
Justice White'e necislon.
Analysed, Justice Whites decision Is
that csongress did not Transcend its con-
stitational authority In the enactment
OF the comr ODDITIES provision. but on
the other hand 1t was held that the
Governments decision Of the provision
had been entirely too comprehensive.
As construed by. the court the sole
object Of the clause Is to prevent car
riers from being associated in interest
with the commodities transported at
the time of transportation, hence that
the law only prohibits the Transports
ton OF articles when they have been
produced by railway company which
has not In good faith. parted with
trolls in whole or In part the cornmod-
ity to be transported and when the
company has an interest direct or In
direct, In the commodity in the legal
sense. 1t Is especially held. however.
that the prohibition decision does not
apply to the ownership of stock in such
arcapacity and at the same time trans
port the product OF that company.
Summed up, the act only compels
companies to disassociate themselves
from the products they carry and the
contention of the Government that the
law applies TO the ownership of stock
and prohibits the transportation Of COM
modities simply because they have been
produced by railroad company, re-
CARELESS of the fact that the company
has parted with them, is untenable and
incapable of enforcement.
1T thus appears that the commodities
clause is vital and operative statute
with respect to all products such as
coal which the railroad companies ac-
tua1fy own at the time OF transporta-
ton and that the railroad must sell
such products to somebody else before
they can lawfully ship them. and Sec
ond that unless the act Is promptly
amended by converting their direct
ownership of coal properties into stock
owners probably the organization of
subsidiary coal companies.
Favorable to Railroads.
The effect OF the decision Is favor
able to the railroads and the Govern
ment lost on practically all points ex-
cept in the sustaining OF the princi-
pie involved. In holding that Congress
had gone beyond its authority In en-
acting the law. the court comedies the
right to legislate and 1t is believed. IL
SO disposed. Congress might enlarge
and extend the scope of the provision.
Hence, while the railroads gain a prac-
teal victory, the Government is not
confronted by a constitutional bar from
further acting in the direction of con-
troll of the roads In the matter OF the
shipment of their own commodities.
The cases made their first appearance
in the Supreme Court on October 10,
last They were argued during the
month OF January and the decision has
been anxiously awaited since the lat
ter date.
The decision sustained the provision
of the law exempting timber from the
operations of the clause. This ex-
emption was used as basis Of attack
by the railroads on the law as discrfm-
inatory, but Justice White refuses to
accept that view.
The announcement as to the commodi-
ties clause was made in deciding the
twelve injunction and mandamus cases
brought by the Government against
the Delaware and Hudson, the Erie, the
New Jersey Central, the Delaware and
Lackawanra, the, Pennsylvania and the
Lehigh Valley Railroads. The cses
came to the court from the United
States Circuit Court for the Eastern
District OF Pennsylvania, whose decis-
ion, as announced by Judge George
Gray In 1908. attracted much atten-
ton. 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 interstate commerce in
anthracite coal mined by themselves In
their own mines which are located In
Pennsylvania. The Hepburn act makes
IL unlawful for any railroad company
to transport frop any State to any
other state or to any foreign country,
any article or commodity, other than
timber, manufactured. mined or pro-
duced by 1t or under its authority, or
which 1t may own in whole or in part,
or in which 1t may have any interest.
direct or indirect except In such ar
ticIes or commodities as may be nee
essary and intended for Its use in the