The Washington herald., 1915-01-01
new ANTITRUST
BILL INTRODUCED
Administration Offers Meas
ure to Strengthen Com
modities Clause" of Act.
IS ITS SPONSOR
Would Divorce Railroads from Con-
Germs Manufacturing Commodities
Transported by Common Carriers.

new administration antitrust bill
has been placed before Congress. It
is designed to strengthen what is
known as the commodities clause" of
the interstate commerce act by requir-
ing railroads to divorce themselves
from any concerns that manufacture.
mine. produce. or deal in commodities
transported by common carriers.
The bill was introduced by Repre-
sentative William c. AdamsOn, of
Georgia. chairman of the House Com
mittee on Interstate and Foreign Com
merce. 1t was offered at the instance
of Attorney General Gregory. and has
been indorsed by President Wilson. An
effort will be made to put the bill
through at this session, although the
administration will not insist upon it's
passage at the this time.
Commodities Clause Failed.
In the annual report Of the Attorney
General the statement was made that
the commodities clause" had failed to
attain the end sought by Congress as
a result of Interpretation by the
courts. In passing the commodities
clause" Congress sought to prohibit
railroads from engaging in such bust
nesses as the mining of coal or other
production of articles transported in
interstate commerce. This prohibition
was rendered ineffective by the forma-
tion OF subsidiary companies that
bought coal for example, at the mouth
of the mine, such subsidiaries, accord
ing to lawyers, being controlled by
railroads. In the decision in the case
Of the government against the Della
ware and Hudson Company, the court
held that railroad does not necessari-
ly have an interest, direct or indi-
rect, in articles manufactured or pro-
duced by a bona fide corporation of
which the railroad is a stockholder."
Accordingly. Attorney General Gregory
recommended changes in the law which
are outlined in the AdamsOn bill The
bill provides that after January l. 1917,
it shall be unlawful for a railroad to
transport in interstate commerce ANY
articles or commodities" mined by such
railroad "or under its authority. direct
ly or indirectly" BY January ], 1918. all
railroads are required to dispose of any
interest, stock or otherwise, that they
may hold in concerns producing articles
for transportation.
Punishment Provided.
Violations of the law are to be deemed
a misdemeanor, punishable by fine not
exceeding 5000 or by Imprisonment not
exceeding one year, or both, in the dis
cretion OF the court. The bill was writ
ten under the direction of the Attorney
General.
From and after January l. 1917" reads
the bill in part, lit shall be unlawful for
any railroad company subject to the act
to regulate commerce, to transport in
commerce any articles or commodities
thereafter manufactured. mined or pro-
duced % by such railroad company or
under its authority, directly or Indirect
ly. or (2 by any person. firm or corpora
ton subject to its control, or to whose
control its is subject, through stock
ownership or otherwise, or 90 by any
corporation or association which has the
same controlling shareholders or men,
bers as it has, or is otherwise subject
to the same control. This prohibition
shall apply irrespective of whether there
is any relation, direct or indirect. between
the railroad company and the articles or
commodities at the time of transporta-
tiOn.
Transportation Forbidden.
From and after that date it shall
also be unlawful for any railroad COM
pany subject to the act to regulate COM
merce, to transport in commerce any
articles or commodities the control of
which. or any interest in which, direct
or indirect. shall have been thereafter
acquired in any other manner, for the
purpose of dealing therein, % by such
railroad company or under its author
ity, directly or indirectly. or (2) by any
person. firm or corporation subject to
it's control. or to whose control it is
subject. through stock ownership or
otherwise. or (3) by any corporation
or association which has the same con-
trolling shareholders or members as il
has. or is otherwise subject to the same
control. This prohibition also shall ap
ply irrespective of whether there is any
relation, direct or indirect. between the
railroad company and the articles or
commodities at the time OF transpor-
tation."