Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-04-06
SUPREME COURT DECISION RE.
STORES EFFECTIVENESS OF
STATUTE.
RAILROADS AND COAL
WILL NOW BE DIVORCED
Commodity Clause Of Statute, Once
Hold Invalid, Put Into Force by
Same Tribunal That Once Decided
otherwise-coai Operators Not Wer.
ried by Decision.

Washington, April 6-The "commodi-
ties clause" of the Hepburn rate law,
interpreted two years ago by the SUI
preme court of the United States into
what was comm only supposed to be an
impotcnt group of words, was given
new life by that same tribunal In g.
second Interpretation. So effective
was the reconsideration OF the subject
that government officials predict that
the evils sought to be corrected by the
legislatio will now be remedied and
railroad business henceforth divorced
from the coal business. Chief Justice
! White Yesterday announced the decis-
ion of the court
The chief justice took the position
that the lower court had erred in refus-
ing to allow the government to amend
it's original petition. He referred TO the
refusal as IAN absolute abuse OF dis
cretion" He said. however. that the
abuse was obviously occasioned by
misconception Of the character OF the
action of this court and the scope OF
the mandate"
In referring to the holding Of the SUI
preme court two years ago. the CHIEF
justice said:
while that decision expressly held
that stock ownership by a railroad
company in bona f1de corporation. ir-
respective of the extent OF such owner
ship, did not preclude railroad COM
pany from Transporting the commod-
ity 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 interstate commerce a commodity
manufactured mined. owned, or pro-
duced by corporation in which the
railroad held stock and where the pow
ar OF the railroad company as stock
holder was used to oblfterate all dis
tinctions between the two corpora
tons"
White Sums Up Decision.
The decision was summed up by the
chief justice IN these words: =,
ut must be held that while the right
Of a railroad company as a stakeholder
to use its stock ownership for the pur-
pose Of bona hde separate adminis-
tration Of the affairs Of corporation
IN which 1t has stock interest may not
be denied, the use OF such stock own
terslip for the purpose OF destroying
the entity Of producing etc, corpora
ton and Of commingling It's affairs IN
administration with the affairs Of the
railroad company go as to make the
two corporations virtually one. brings
tho railroad company's voluntary act
ing as to such producing. etc, corpora
ton within the prohibition Of the COM
modities clause"
AS a result OF the decisions. the lower
court win now allow the government
to amend its petition In the Lehigh
Valley railroad case. A different situa-
ton arises in regard to the Erie. and
Central Of New jersey and the Penn
sylvania. In those cases the govern
ment did not ask for leave to amend,
considering the Lehigh Valley suit a
test cese. The government did ask the
court to dismiss the Erie, Central and
Pennsylvania cases without prejudice.
but this was refused and the circuit
court dismissed the cases. This dis
missal today was approved by the SUI
preme court. Ordinarily this would
prejudice the government bringing new
s,,it~ arain9A fhese "a ilroads