The sun., 1909-05-04
VICTORY FOR COAL ROADS
COMMODITIES CLAUSE VAkfn
hut HARMLESS. 50
Carriers Msy Trsnpsst' Csal Itsey - M
Own 1t the Tine sf en'pnssss aaA sesy
Own stsck IN Cssi 1Csapaaas u
Taey Arc OrVaadzed in Coed vue1A

was constitutional, which MS rovettsl
Of the finding Of the Federal Circuit cpart
for the Eastern district Of PsunsylvanlA
This apparent sweeping victory Tor ths
Government wac. however, completsiy
wiped out by the further fading 81 ths
court that the ownership by railroads 4,
stock In coal companies was not dissst
or indirect interest In the commodtty
within the meaning Of the att, which
would permit the roads to coutinns thar
coal business through other corporations
and also that the act did not prevent
railroad from owning coal mines and opss-
stins them; providing IL aoid tbs o,h 81
tho pit mouth In good fsith, 1t could as,
transport Ito products. -, .,~
These latter conclusions wSrs directly
opposite to the oontsntions OF the Govssa-
ncnt, which 10 the present saits "a
deavorvd to enjoin, the six authrscitA
coal roads--the Delaware and HnAssn
the Erie. the reunsyivania, the f.A6ts-
wanna, the Lshish vailsy and tbs Central
Railroad Of New Jeney-frum vioiStins
the law by transporting coal owtSd by
them or by corporations to which thAy
owned stock.
Tho lower court disYhisssl the .,ills
brought by tho Governu1ent hsosuxa t1s
commodity clause was tncorstlt,,tIn.s.l
In that II deprived the carriers Of pyopSry
wit hout due process Of law. w6ySed
directly conHsoatlon Of their propsfty
was unreasonable regulation a. sSt4ss-
state commerce and In nature and sAsct
was discriminative prohibition. Tbs
Government appealed TO the Gnprtrss
Court and the cases were argued nesry
three months ago. since which thsY k6#s
been under consideration By xhe count, {.
The courts opinion to-day was unkAi.
nous except for the diAsent Of Justxes
Harlan. and his divergence Wa osp6as6
to one point. namely. that tAS owAsc1tJp
by tbs railroads q stock Ia :...!!:.s:sS Seza.
panies was In vioistios Of the law eTbs
majority opinion was By Justss Wiats.
who delivered 90 Oral oplnioa sAdsha6dsd
down . memorandum ooutaining u,
principal points of the conclusions ysana1sa
Ia the Case His writtsn opdnlou, wlae4i
b Of oonsidefsbaa length. w1h bs avss4h9s
withan . fsv Aass- THs nsllsosssdan IL
submttted follows % ~
I. The claim Of the GovsrurnSnt thE
the provtaion, contstnsd IN w AeV6ss
sct Approved Juns -. itoe. ,e0Huls
called the commodities clause. prc4t1lts
. railway company from naevt1s 0tbd.
moditiss In interstate oernmsrce bacso0
the company has naanefsctufsd, nnlae4
or produced them or owned tAsa 70 wtSts
or In part Or hes hsd N int@eee 4tsct
or indirect Ia them, wholly ifrAap9cstss
Of the relation or ooansction Of the safrfef
with the commodities at the tina q
transportation. d decided 70 b uatss-
able. It 10 also decided that the prSvisl6n
OF the commodities clause rslstine h ~
terest. direct or indirect doea not ssA-
brace an interest whioh q osrYiss utey
have In q PRODUCING corporation - the
result OF the ownsrship by the oAsriW
Of stock In such corporation, kr<epeeftSa
OF the amount Of stock which tk$ o4ffter
may own In such corporation. pr6stdsS
the corporation hss besu eessutetd 10
good faith.
.. Rejecting the cohstruction plassi
by the Government upon the eou1nSedi'
ties clause Il y decided that that clsdae.
construed, hAs solely for its sbtsot ~ Pre-
vent carriers sntassd In intSrstats Ssni-
MERGE from bsine associated Id intrses
At the time Of transportation With the
commodities transported. and thsf>fors
the commodities clause only proh(bts
railroad companies engaged tu intefst6ts
commerce from Transporting IN such cofus
meroe commodities under the foliowtns
Circumstances and conditions; 80
t., When the oomao dty has bees nsaus-
faotured. mined or produced ~ s rul-
way coTpanS or under its authortty and
at the time Of transportation the ssilwly
com pany has not In good faith bsfors ths
act OF transportation parted with Ito Ia
terest In such commodity.
tb) When the railway company owas
the commodity to BE- transported Ia Whole
or ID part.
20, When the raslwsy eondp6uy 1t the
time Of trapsportAtioa hAs - int>ttpt.
direct or indirect, In 4 legal eenss y tAs
which lest prohibstlou d6es
not apply to commodities msaufseerSl.
mined. produced. owned. Ao.. ~ 3 6yr-
poration bsosuss . railway osucesy Ne
stockhoidsr In such oorpossetoa.
Such ownershlb Of stook In . pre6sslAS
company By . railway e6mpeny da4a ~.
cause Il ~ the owner u ths eee6k - AeSs
. legal interest In th4' e6a&Asodltv naAAe'
fsotured, TO-, by thA pro4udlnS eofpesse6a
3, A. thus conStruad - soa1us6ts3es
CLAUSE ID . rakulatisu ef oonanArss vttels
tbs povtr sf CeaSrsaA - eAank ~
oontSntionA slaborst4ly sTsued ~ -
railroad compsniss. that ~ c3snee ~
p,isd 10 prssyieaas nghh wv cSeea0
tS tAks prepsety II ralread s>Mteoes
and ghssSfoTo vioistH ~ ~ tToAnle A4sDe
Of tn Fun AnnAndMsdt were ~ heeed
upon ths assumptaou tAat ~ eesust ~
hhitsd and restricted IN A1epf1oA1e WITH
IA oonstruotion whteA ~ 06po9101at
rave that casuss and fer ~ yuxpM 81
enforcing which prohibitaons 49, susn
wsrt brought. -.
A. ths construction watch ~ ost.
eminent placed upon - aos - sdn
10 enforce 10 nov hAld ~ 10 uBse9pl. -
n none Of the oentsatioAa te(teA un1e
lrS Applicable 70 the oct - nov eee1trse4
bocause under such oonStruottea N eet.
merely snfoross . rtgulstien Of coe4nys
by which CARRIERS are osnp4ll1 y 1
date Themselves from ths prsdooee WA
hey oarry and doss not prohfett ~Segs
he carrier 70 net assecisted MN ~ oen-
modify carried. u followv thst TIE con-
leotions on The subject Of the ffth AnASed'
nsnt are without merit
4 The exemption ~ 70 timbsr. kc.
In the CLAUSE b not repakAsnt
10 the Constitution.
s, The provision - 70 penAitits b sep.
,rabls from the other provtdona of tAs
.ct, A. no reoovery OF penAittes wns
,rayed no Issue concerning them h. hsss
presented. 10 win b time enough 70 od1'
Iidsr whether the right 10 rscovef pto1l-
lea exists whom an attempt to collect p>a.