The free lance. (Fredericksburg, Va.) 1885-1926, 1911-04-06
GOVERNMENT WINS
Supreme Court Decides
Against Lehigh Valley.
REVERSES LOWER COURT
Decision Gives Authorities Another
Opportunity to EnjOin Roads
Transporting Coal Produced
by Themselves.

Washington, April 4.-By virtue Oh
decision by the supreme court OF the
United States, the federal government
will lave another opportunity to en-
Join the Lehigh Valley Railroad COM
pany, piercing the anthracite region
OF Pennsylvania, from carrying coal
in alleged violation OF the "commodl-
les clause" OF the Hepburn rate law.
This decision furnishes a new wea-
Oon BY which the federal government
may reach out to prosecute coal car
rying railroads shipping the product
If mines in which they have a con-
rolling interest. In II the court holds
hat where the government can show
hat coal companies are merely dunn
mics" for the railroads and organized
specifically to eyade the commodities
clause, II may prosecute.
The importance Of the "commodi-
ties clause" decision was indicated by
Wade II. Ellis, who was special coun-
sci for the government. He said;
This decision reopens the funda-
mental questions involved In the orig
inal commodities clause case. The
court now holds that a railroad COM
pany cannot lawfully transport in In
terstate commerce the coal Of a sub
sidlary company which belongs to the
railroad and which Is managed so as
to make ii not in good faith an inds
pendent corporation.
This will correct the real evil at
which the commodities clause was
aimed. II will divorce the railroad
business from the coal business, and
compel interstate carriers to attend
strictly to functions for which they
we're organized"
Reverses the Lower Court.
Justice White in announcing the
commodities" decision held that the
lower court had failed to carry out
the earlier decree Of the supreme
court in not allowing the government
10 amend its original bill so as to
show that the coal company in Ques-
ton was a mere device Of the rail-
road to eyade the law.
Justice White held that the court
was right in refusing to dismiss with
out prejudice the suits against the
other railroads.
The commodities" clause made 1t
II ~.flrao1 tFQnCn0Tf
in interstate commerce any commod-
ity produced by IT, or in which II
might own or have any interest with
certain exceptions. The government
sought to reach under the law a num-
Der OF railroads carrying anthracite
from Pennsylvania.
The circuit court OF the United
States for the eastern district OF
Pennsylvania denounced the law as
unconstitutional. The supreme court
OF the United States reversed the
lower court, holding the law constitu-
tIonal as construed. The cases we're
remanded for further proceedings.
The government then took the posi-
ton that the supreme court had de-
cided merely that the ownership by
railroad OF stock in a coal company
was not such an interest In coal as
was prohibited by the law. Therefore
1t sought to amend its original petit
ton for injunction so as to allege that
the coal companies were mere de-
vices OF the railroads to evade the
law and that the railroads had a legal
or equitable interest in the coal.
The government made test case
OF the suit against the Lehigh Val
ley Railroad company. The lower
court refused permission to amend,
and likewise refused request to dis
miss the suits against the companies.
From thes rulings the government ap-
pealed to the supreme court.