Daily press. [volume] (Newport News, Va.) 1896-current, 1909-05-04
But on Whole EFFECT Of Verdict
Appears to be Favorable
to Railroads.
GOVERNMENT WINS ONE POINT
Railroads May Organize Subsidiary
Companies to Hold Industrial Prop
Laws Operation-Great Interest
Manifested in Decision.

w ADIllANN O4N, IL. ~ -hos - ~
has been many a day since a decision
of the Supreme Court of the United
States has been received with so much
interest as was manifested today in
the decision of the court in what
are known as the commodities
clause" cases, affecting the anthracite
coal carrying railroads.
These cases had been decided by
the United States Circuit Court for
the Eastern district of Pennsylvania
fayorably to the railroads. in that
the clause of the Hepburn rate law,
which prohibits interstate railroads
from carrying commodities manufac-
tured. mined. or produced directly or
indirectly by the roads. was declared
unconstitutional and the general i'm
preston had been that the decision
would be affirmed by the Supreme
Court.
When, therefore, there was a re-
versal instead of an affirmation, the
interest was much ma gnified.
Decision is PuzzIing.
When again it was found that the
reversal was bnsed ON the technical
grounds and that the effect was
really favorble TO the railroads, SEN
timent took another turn, and those
who had been anxiously awaiting the
announcement of the result found
themselves much puzzled.
The courts judgment was announc-
ed by Justice White, who while he
read from an elaborate printed opin-
ion. declined to give ont anything
more than a summary showing the
net result of the courts finding. There
was also surprise over the TACT that
there was no elaborate dissenting
opinions, and indeed only one dis
senting opinion of any kind.
Justice Harlan Dissents.
The dissent was announced by JUS
tice Harlan, who, in a few words.
stated that he did not follow the
conclusions of the court on the point
that the law does not prohibit the
railroad ownership of stock in COM
modities-p producing companies.
Analysed Justice Whites decision
is that Congress did not transcend
its constitutional authority in the
enactment of the commodities proyis-
ion, but on the other hand, 1t was
held that the governments cOnStruc-
ton of the opinion had been entirely
too confrreheDsjye AS construed by
the court. the sole object Of, the
. clause is I prevent carriers from
lbeing associated Ii interest with the
commodities transported at the time
,of Transportation, hehce the law Only
;pr6hibits the transportation of ar
sticles when they have been produced
iby a railroad company WHICH has
not. in good faith. Tarted with them
when the company owns or controls.
in whole or in part, the commodity
to be transported. and when the COM
panv has an interest direct or indi-
rect in the commodity in legal
sense. II was especially held, how
ever. that the prohibition does not aP-
ply to the ownership OF stock in
producing couirany lent that carrier
NAV own stock in such a company.
and at the same time transport the
product Of tina; company Summed up.
the act only cOmpcls companies TO
disafsOciate themselves from the prod
ucfs they carry and the contention
of the government that the law sp-
niles TO the ownership Of STOCK and
prohibits the transportation OF com
u.odiiicS simply because they have
been produced by railroad company
regardless OF the fact that the con-
panv has parted with them IS Intcn-
able and incapable u enforcement
= thus appears. frs that the com
uosifirs clause * = vital and opera
tive statute with respect 10 an prod
ucfS such a. coal. which the railroad
crmpanics actually own az the time
Of transport alton. ard fhst the raj
roads must sell such products 10
somebody else before fkcv csn law
fully ship fhcm. and second. that
unless he act Is promptly amended
50 as 10 include stock ownership. the
railroads can cscaDc the Law entire
IL bv converting their direct owner
shifts Of coal properties into stock
Ownership by the organization otl~-lo-
sidiarv coal companies.
Favorable TO Railroads.
The effect ~ the decision undcf
exixfine conditions is favorsbic 70
sbc railroads. The government lost
ON practically al points except IN the
erfcuxion Of the principle involved. In
holding that Congress had not gone
frorfinucd On Flftt Parcl