Middletown transcript., 1909-05-08
COURT sUsTAINs HEPBURN LAW
Supreme Body at Washington Says That
Congress- Can Regulate Commerce

Supreme Body at Washington Says That
Congress Can Regulate Commerce
WASHINGTON, May 3d.-That the ''com-
modities clause" of the Interstate Com
merce act of 1906, known as the Hep.
burn railroad rate law, is constitutional
was to-day in effect declared by the Su-
preme Court OF the United States. The
decision was announced by Justice White.
The court reversed and remanded the
decision of the United States Circuit
Court, but the only directions were to
enforce and apply the statute as it is now
construed.
Briefly summarized, the decision of the
Supreme Court in the commodities clauses
holds the law TO be constitutional, but it
does not concede the contentious of the
government as to its scope An especial
exception was as to the ownership of
stock in different corporation which it
was held did not constitute such owner.
ship as would prohibit transportation
under the terms of the law.
1t was also held that ownership of the
commodity applied only to the time OF
transportation. If before transporting it
the railroad company has in good faith
parted with the commodity, it may carry
it. 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 decision vas
unanimous.
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 Lacka--
wanna, the Pennsylvania and the Lehigh
Valley Railroad Companies.
The cases came to the court from the
United States Circuit Court for the East
ern District of Pennsylvania, whose de-
cision as announced by Judge George
Gray in 1908 attracted much attention.
They originated in the Circuit Court, and
in its petition the Government charged
that the railroad companies in question
were engaged in transporting in interstate
commerce anthracite coal mined by them
selves in their own mines, which are
located in Pennsylvania.
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 than timber, manufactured,
mined or produced by it, or under its
authority, or which it may own in whole
/ or in part, on in which it may have any
interest, direct or indirect, except such
articles or commodities as may be neces-
sary and intended for its use in the con-
duct of its business as common carrier. +"
The Circuit Court decided against the
constitutionality of the provision because,
as it was alleged, it depriVes the corpora
tions Of their liberty and of property in
a way that is prohibited by the Fifth
Amendment to the Constitution. Il also
was held by that Court that the clause
''not indirectly but directly works
practical confscation of the property Of
the railroad since the Law was held to be
invalid and Sin its nature and effect a
diecriminative prohibition" That YER
I dict was reversed by to days decision.