The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1909-12-31
Uncle Sam After the Railroads.

Washington, Dec. 27.-The United
States government is to make another
attempt to compel railroad companies
to divorce themselves from any other
business than that of transportation.
To this end evidence is being collect
ed by attorneys especially appointed
by the department of justice and it
will serve as the basis for new suit
to be instituted under the so-called
commodities clause" of the Hepburn
interstate commerce act.
The commodities clause" was in
serted in the Hepburn act following
an exhaustive investigation made by
the interstate commerce commission,
which showed that many of the rail-
roads of the country, especially those
penetrating mining regions, were en-
gagged in mining or producing commod-
tiles and were giving the products
| thereof preferential treatment in the
way of branch lines, switching accomo-
dations, etc.
Their policy naturally resulted eth
er in sending Independents into bank
ruptcy or compelling them to make
almost superhuman efforts to keep
their heads above water. The effect
also was to tend toward railroad
monopoly not only of transportation
but of industrial businesses.
! Ostensibly for the purpose of pre-
venting this monopolization, the com
modities clause was adopted prohibit
ing any railroad company from trans
porting any article or commodity other
than timber and manufactured pro-
ducts thereof, manufactured mined,
or produced by it, or under its authori-
ty, or which it might own in whole,
or in part, or in which it might have
any interest direct or indirect. An
exception was made in cases of such
articles or commodities as might be
necessary and intended for the use of
a railroad company in the conduct
of its business as common carrier.
1 With the cooperation of the rail
road companies and to determine the
constitutonality of the law suit was
entered by the government in the cir
cult court for the eastern district of
Pennsylvania against six railroad
comprehensive Delaware and Hudson
company, the Erie railroad company,
the Central railroad of New Jersey,
the Delaware, Lackawanna and West
ern railroad company the Pennsyl-
vania railroad company, and the Le-
high Valley railroad company.
The entire distribution of anthra-
cite in and into the different states
| 20 no
1905 was 61,410,201 tons, approximate
" four-fifths of which was transported
in interstate commerce over defend
ant railroads, and of this from seventy
to seventy-five per cent was produced
either directly by the defendant COM
panies or through the agency of their
subsidiary coal companies.
The circuit court declared the COM
modities clause invalid. The supreme
court, however, upheld the right of
congress in the exercise of its con-
stitutional power to regulate inter
state and foreign commerce, to pro-
hibit absolutely an interstate carrier
from carrying in competition with 9th
er shippers commodities in which it
is personally interested at the time
of such transportation.
At the same time it was decided
that this prohibition did not apply to
the transportation of commodities
owned by another corporation, where
the only interest which the carrier
had therein at the time of such trans
portation arose out of its ownership
Of capital stock in the corporation
owning the commodities so trans
ported.
Under this decision a number of
railroad companies sought to evade
the intent of the statute by organizing
separate corporations and retaining
the ownership of their capital stock.
In other words, their possession of
mines and products thereof is Just
as absolute today es 1t was before the
decision was handed down by the su.