Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-04-04
Government is Now Allowed to Amend
Its Original Petition.
FORBDS CONVINCING AFFAIRS
Railway Company May Not Control
Another Corporation.
THREE SYSTEMS MAY YET ESCAPE
Cases Against Erie, Central of New
Jersey and Pennsylvania Dis
missed and Doubt Exists
as to status.

WASHINGTON. April S.--The "commodi-
ties clause" of the Hepburn rate law. in
terpreted two years ago by the supreme
court Of the United States was given new
life today by that tribunal in a second
interpretation So effective waE the re-
consideration Of the subject that GOVERN
ment officials predict the evil win now be
remedied and railroads divorced from the
coal business.
Chief Justice White announced the de-
cision Of the court The entire bench agreed
with him, although on the previous con-
sideration Justice Harlan dissented.
The chief justice took the position that
the lower court had erred in refusing TO
allow the government to amend its original
petition.
Must Not COmminEle Affairs.
While that decision expressly held" said
the chief justice In referring to the prev
lous holding Of the court that stock own
ership by a railroad company in a bona
Tide corporation irrespective of the extent
OF such ownership did not preclude a rail-
road company from transporting the com
modify manufactured, mined produced or
owned by such corporation nothing in
that conclusion foreclosed the right of the
government to question the power of the
railroad company to transport in the course
Of Interstate commerce a commodity mann
featured, mined, owned or produced nv a
corporation In which the railroad bsI5
stock and where the power of the railroad
company as a stockholder was used 70
obliterate all distinctions between the two
corporations. That is to say. where the
power was exerted in such manner as to
commingle the affairs of both as bv neces-
ssry effect to make such affairs practieaIlv
undistinguishable and therefore TO cause
both corporations to be one for, all pur-
poses"
Summary of DecIsion.
The decision was summed up in these
words:
1T must be held that while the right os
railroad company as a stockholder Ia
use its stock ownership for the purpose nj
q bona fide separate administration OF the
affairs of a corporation in witch 1t has
stock interest, may not be denied the U.S.
of such ownership in such instances Tor
the purpose of destroying the entity Of a
producing corporation and of commingiins
| its effects in administration with the az
fairs Of the railroad company so as &c
make the two corporations virtually one
brings the railroad company so voluntarily
acting as to such producing corporation
within the prohibition of the commodities
| clause
In other words. that by operation and
| effect of the commodities clause. there Is
duty cast upon railroad company pur-
posing to carry in Interstate commerce a
product Of the producing corporation, in
which It has stock interest, not to abuse
such power so as virtually to do by I'm.
| direction that which the commodities claus,
prohibits. duty which plainly would be
violated by the unnecessary commingIlng
OF the affairs Of the producing company
with its own so as to cause them to be
one and inseparable."
VIII Amend Petition.
As result OF the decisions the lowe,
court will now allow the government &c
! amend Its petition in the I.ehirh Namn,