New-York tribune., 1909-05-04
TRUESDALEON DECISION
NO d., L. 6 ". PLANS YET
UM Form Company to Take OUer
Mines or Buy Coal.

Mines or Buy Coal.
William II TruesdaIe president of the Delaware
Lackawanna & Western Railroad Company when
was adversely affected by the Supreme Courts de-
cision in the commodities clause case when asked
what steps his company would take to comply with
the ruling of the court said he thought the rodu
would be compelled to form corporation el'her 10
take over its coal lands to purchase Its coal al
the mines. The stock of such q concern he auoeu'
could be distributed among the stockholders OF the
railroad company.
so far as have read the decision. said Mr.
Truesdale. lit directly affects only the Delaware q
I.ackawarna, which is the only road having direct
ownership Of the coal which it transports NHl4e
the Delaware & Hudson also owns coal lands II
sells its coal at the mines and. understand lhe
ruling Of tn. court, railroad Is not PFolioi''u
from Transporting the product of its mines provided
such product has been sold in good faith 10 t.iiiu
party before the railroad undertakes TO carry IL
..Neitber docs II appear that railroad is prohio-
tied from the interstate transportation OF coal be-
longing a company in which it has STOCK IL
terest just how far such stock interest may Eo
the abstract Of the decision which have seen does
not state, and until ] know this j cannot sd! u'ii
nteIy just what plans will be
1T. would important TO know, for instance
whether there would be any objection to ralIroau
owning all the stock in such concern ana having
the same officers manage both companies Nh'e'
therefore. we may find it necessary TO form cor
noration for one of the purposes have mentioned
we have not yet decided upon any plan and ''lH
not do so until We have had time to study the de-
cision in full"
President Underwood Of the Erie said it looked to
him if it meant a practical victory lor 'He Iu''
roads, and added:
The decision so far be told from the ao-
stract is along the lines were led 10 expect ~
counsel The Erie has stood pat and made 10 at
tempt to transfer ownership. position which the
Supreme Court decision seems TO have jus'hed
Gohert w De Forest who associated with
John G Johnson in the argument Of the commodly
cases, said:
'PracticaIv the decision OF the Supreme Court IS
in favor Of the railroads and the public and against
the contention Of the Attorney General that all
coal mined by the railroads which had direct own
ership in the coal and all coal mined by SUD-
siJiarv coal companies in which the railroad COM
panies had stock interest was barred OF inter-
state transportation by the Hepburn act
'Of the anthracite carriers only two-the I'eId-
ware Iacllawanna & Western and the Delaware
& Hudson-have any direct legal ownership IN an
thracite coal. Both these companies are author-
lied bv their charters 10 mine anthracite coal and
to transpor; IL All the other so-called anthracite
carriers own stock in coal mining companies
The, Delaware x Hudson company. as under
stand at the present time and for some time past.
has been accustomed 10 sell its coal at the mines
Therefore tie prohibition Of the act. under the de-
cision OF the Supreme Court, would not apply TO
it II would apply to the Delaware, Lackawanna
4 Western under what understand 20 he its pres
ent course Of business, but ii would seem quite
possible for that company adopt the practice OF
the Delaware & Hudson, or equally possible for
that company transfer It's coal lands 10 another
company the stock Of which can be held by II. in
asrnuch as its coal lands not covered by any
mortgage.
The grave consequences 10 the public which
would have ensued had the contention Of the gov
ernment been sustained, viz. that all coal now
TRANSPORTED by these companies to states other
NaA hK
them, the case Of the last two mentioned
companies or mined by companies in which any OF
them had stool. interest. In the case Of the
other companies. and indeed in some degree with
the last two. will not follow A contrary decision
would have created a coal famine in every state
other than Pennsylvania the like of which has
never been experienced by the country"
Another of the leading attorneys for the anthra-
cite coal roads said concerning the decision
While the court declares the law constitutional
1t puts a new construction it which will enable
many Of the roads To continue operating under the
same conditions as now. AS I construe the de-
cision. II means that railroads which do not own
coal lands outright but do the stock of coal
companies controlling the lands. may continue to
transport the coal the they do The
courts ruling exempts them from the provisions of
the law This would apply the Reading and the
Pennsylvania, both OF which concerns simply
the stocks Of coal companies In part it will apply
a lso to the I.ehgh Valley. Jersey Central, Ontario
& Western and the New York Central"
While the Supreme Court has held the cOmmod-
tiles clause to be constitutional still another
torney for the ccal roads said 1T has construed the
statute declare that its provisions apply only
to such cases where the commodity manufactured.
mined or produced by a railroad company under
it's authority continues to be the property Of the
railroad company al the time OF its transportation
in whole or part, but that act does not apply to
a case where the railroad company is the owner Of
the stock of q corporation which manufactures.
mines or produces the commodity, however large
the interest Of the railway company in such stock
may he In such case assuming that the produc-
ing company is organized in good faith. the com
has MN nnIlicatinn