New-York tribune., 1909-05-05
PRESIDENT TO URGE
COMMODITIES ACT
WILL F11VOR AMENDMENT
ONCE REJECTED.
Thinks Clause U'OuId Be EfectiUe
If Stock Holding Constituted
Legal Interest .
from The Tribune RursauJ


Washington. May 4-The President and his
Cabinet spent most of to-days Cabinet meeting
in considering the decision Of the Supreme Court
IN the commodities clause case. and the outcOns
of the consideration. and OF a protracted confer
ence between the President and the Attorney
General which followed. was decision that this
President would recommend in his annual mes
sage an amendment to the Interstate comu.er-s
law which viii. it is believed. render the con-
modities clause effective The proposed amend
ment is similar 70 one introduced and rejected
in Congress while the bill was pending. IL pro-
vides that the holding of STOCK in a producing
company by common carrier engaged in inter-
state commerce shall constitute legal interest,"
therein within the meaning of the law
Mr. Wickersham expressed the opinion tnat
the Supreme Court. in holding that the railroads
not prohibited by the commodities clause
from holding stock in producing companies
whose products they carried was entirely con-
sistent with earlier decisions in which the court
had held that the ownership Of stock did NOT
constitute a legal interest" He said that the
court had held that the ownership of stock mere
~ gave to the holder a share in that intaugibls
something known as the capital stock. but not
a legal interest In the light of such former de
cision, Therefore, the commodities clause. which
prohibits a railroad from Transporting a COM
modify. the product of a company in which u
may have any interest direct Indirect can
not be held to prohibit such railroads from
transporting the products - a company in whicl
it merely holds stock. but were the law
amended as To declare that the words any in
terest direct or indirect shall be construed as
meaning the holding of stock therein. such
transportation would be forbidden The other
lawyers in the Cabinet agreed with the Attorney
Generals interpretation of the decision. and tho
z
to amend the law as indicated by Mr.. Wick
ersharI-
The question was put to the Attorney General
in the Cabinet meeting whether he believed that
the decision of the Supreme Court the COM
modftfeS clause authorized holding companies.
and he said emphaticaIy that it did not He
explained that the question of the legality or
holding companies was not before the court. and
it did not. therefore pass upon it. The only
phase of this question presented 10 the court
for adjudication was whether the Interstate
Commerce law. as it stands on the statute
books. prohibited railroads from transporting
the products of companies in which they held
stock. and the court naturally deci.lsd only the
question before IT,
To RECOMMEND VARIOUS CHANGES
As has been indicated IN these dispatches. the
President purposes to urge number Of i'm
portanu changes in the Interstate Commerce
law one Of the most notable being an amend
ment which snail authorize the pooling Of rates
under the supervision of the Interstate Com
nerce Commission. This alteration in the law
was urged by President Roosevelt in several
MESSAGES To Congress. and it is held by Presi-
dent Taft 20 be all important in that it viii
make for the interests Of the shippers as we'll "a
of the railroads. He believes that the result OF
such an amendment would be, in many IN
stances TO lower rates to shippers, while the ex-
istfng law is So farredching as To be pract-
cauy impossible of enforcement
The President is intensely interested in the
urobIenl of what amendments should be made 70
the interstate commerce law To make it practi-
cable and effective, and he IS holding many
conferences with the Attorney General on the
subject As has been told in The Tribune. the
Attorney General. the Secretary of COmmerce
and Labor and the Secretary of the Interior
have been charged with the duty Of working
ont a method of simplifying the work Of the
Pursau OF Corporations. the Interstate COM
mere, Commission and the Department OF JUS
tice in so far as it relates To the common car
riers 10 the end that there shall be no duphca-
tfon of work and that each Of these agencies
shall work i'm harmony To a given end-tIle
rrouar and prompt enforcement of the law.
Thus far comparatively little lrogress has oeeh
made along this line. because of the many
drrries of these officials in obtaining a grasp on
and reorganizing their respective departments
brt the President expects that they Will work
,1t IN effective scheme in ample time for him
- enbodv it's recommendation in his annual
message 10 Congress
When with tila best legal advice at his com
,7and and he believes ne commands the aoleSt
legal talent in the country. the President has
determined on tine changes which he believes
fmDortant. he VIII urge them upon Congress
,.,e,rousrv. and he hopes that the next session
will record the enactment OF legislation which
will sc far 10 perfecting and rendering effetsiVs
the body of the law on this subject
~r MON or ODDLY