The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-05-03
RELATING TO
HEPBURN ACT
Supreme Court Reverses U. s. Circuit
Court Of Philadelphia and
Holds Clause in Hepburn
Act Constitutional.
AFFECTS MANY ROADS
No Railroads May Transport Coal in
Any State or Territory, In
Which Said Road Has
Any Interest.

4
WASHINGTON, May 3.-The SUI
preme court this afternoon declared
the commodities clause Of Hepburn
railroad act constitutional, thus re-
versing the U. S. circuit court of Phil
adelphia
The decision is against the rail-
roads having ownership. or interest
in mines They now have to
dispose of their mine holdings. The
commodities clause reads as follows:
From and after May 1, 1908, it shall
be unlawful for any railroad company
to transport from any state or terri
tory, or the District of Columbia to
any state or territory or foreign coun-
try, any article or commodity other
than timber and manufactured pro-
ducts thereof manufactured, mined or
produced by it, or under its authority,
or which may have been in the whole
or part in which it may have any in
terest, direct or indirect, except such
articles or commodities as may be nee
essary or intended for it's use in CON
Quoting business as a common car
rier."
A fine not exceeding $4,000 fo reach
offense is provided.
Affects Several Roads.
The decision was read by Justice
White. It permits railroads like the
Pennsylvania and Reading, which own
stock in coal producing companies to
haul interstate commerce coal pro-
duced, but prohibits such lines as the
Delaware and Lackawanna, which ac-
tually own coal mines and operate
them, from haluing in interstate com.
mrece coal produced in these mines.
The claim of the government that
the provision contained in the Hep
burn act, prohibits railway company
from moving commodities in inter-
state commerce, because the company
has manufactured. mined or produced
them. or owned them, in whole or
part, is decided to be untenable. 1t
was also decided that the provisions
of the commodity clause, relating to
interest. or indirect, does not en-
brace interest which O carrier may
own in such corporation, provided
the corporation is organized in good
faith. Rejecting the constitution is
based by the government upon the
commodities clause. when all it's pro-
visions are harmoniously construed,
and has solely for its object to prevent
ba or,-;o In, iv{ ~
commerce from being associated in
interest at the time of transportation
with the commodities transported"
The Argument.
Therefore the commodities clause
only prohibits railroad companies en-
gagged in interstate commerce from
transporting in such commerce COM
modities under the following circum-
stances and conditions. When the
commodity has been manufactured,
mined or produced by the railway
company, or under it's authority, or at
the time of transportation, the rail
way company has not. In good faith
before the act of transportation part
ed with it's interest in such commod-
ity; when the railway company owns
the commodity to be transported as
whole or part; when the railway COM
pany, at the time of transportation,
has interest, direct or indirect, in a
decision continues, "The last prohi-
bition does not include owning stock
in the producing corporations saying,
as owning of stock does not cause it
to have legal interest in the commod-
ity manufactured, etc, by the pro-
ducing company. "
1t continues, "as thus construed the
commodities clause is a regulation of
commerce within the power of con-
gress to enact"
roads act of violation of the fifth
amendment in the constitution is all
based on the assumption that the
clause prohibited or restricted in ac-
cordance with the construction the
government gave clause, for the
purpose of enforcing which prohibit
tions of these suits were brought. 1t
says also that exemption as to lumber.
ETC., is not contrary to the constitution.
Provisions For Penalties.
The decision continues, provisions
for penalties are separable from other
CONTINUED on page 81