The Washington times., 1909-05-04
DECISION Of COURT
FORECASTS DEFEAT
FOR GOVERNMENT
Experts Believe Commodi-
ties Ruling Will Affect
Salt Lake Cases.
HOLDING COMPANY
PLAN SUSTAINED
Many Public Men Consider Ruling
Victory for Stand
ard Oil.
By 7. C. wELLIvER.

That the Government is likely 20 lose
its case in the Federal courts at Salt
Lake City for the dissolution Of the
Union Southern Pacific merger, and
further. that the Standard oil Company
may be sustained as legal and regu-
lar. are two OF the things strongly
foreshadowed. in the opinion of many
public men, by the commodities clause
decision handed down Monday.
Frank B. Kellogg. special trust buster
for the Government, in charge Of the
Union-Southern Pacific and Standard Oil
cases, was in town Sunday and Mon
day. and held a long conference with
President Taft. Mr.. kellogg has sub
mitted the Government case against the
Standard Oil to the circuit court for
the eighth district, and a decision is
expected some time toward the end OF
the year. Meanwhile Mr.. Kellogg's
partner, Charles A. Severance, is TAX
ing more testimony in the Union-South-
ern Pacific case at San Francisco this
week
Lawyers have In some cases ventured
the confident opinion that the holding
company plan is sustained in a broad
way by the commodities case decision.
They look upon the Union Pacific as
distinctly a holding company, as is also
they are strongly disposed to the opin-
ion that the Government will find the
commodities case decision quoted
against it. when these two cases reach
the Supreme Court, AID with the most
telling effect
What 1t Means.
Beyond all this the United States Steel
Corporation IS a huge holding company,
and a number OF the other great COM
D. L.r1 -.
way. That the commodities decision
may give character and legality to the
entire system OF them is the proposition
advanced today and lawyers are seeking
full texts Of the court decision with the
anxious purpose OF learning just how
much Il may mean
The Governments nominal victory in
the commodities clause case may be
made real victory IL Congress shall
consider, at the next session. that il is
desirable 70 amend the present law so
that < shall apply to wider range OF
relationship between railroads and coal
properties. Whether Congress will take
this course. however. is regarded as
very doubtful.
There Is no doubt that it was the In
tent OF Congress TO make the commodi-
ties clause cover the case Of a railroad
holding stock IN a coal mining company.
On this all the men who had 10 do with
the making OF the Hepburn act are in
agreement They supposed that Ian
guage had been employed TO meet every
possible case; indeed, in drafting the
measure. il was supposed that general
terms such as were used would be
more inclusive and therefore safer. than
more specific but restricted phrases.
The Supreme Court found in this gen
eralization the basis for its decision that
a railroad company may own stock IN a
coal company without losing the right
20 transport that company's coal.
Outlook for Legislation.
As TO the outlook for legislation which
shah so broaden the law as to make II
really effective. the feeling is not very
confident among public men who favor
such a course. They recall that the
commodities clause has been the object
Of constant and determined attacks
from the time II was enacted, and they
are doubtful whether. in the present
less radical attitude OF the public mind
toward the corporations II will be pos
siple TO overcome this opposition. II
is true that efforts to repeal or even
suspend the operations Of the measure
failed last session, but that proves
nothing II Is always harder TO pass
any legislative measure than TO permit
the status quo 20 persist.
The Lackawanna and the Delaware
and Hudson are the two roads which
are most affected by the decision. It
is not yet known, OF course, what they
VIII DO by way OF accommodating
themselves 10 the new situation These
roads directly own and mine their coal
They may either organize selling cor
porauons, which viii take the coal from
them at the mines and thereafter be
free 10 haul and market II, or they
fr4rr r.E