The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-01
Wilson to Plug Loophole
in the Anti Trust Act
Bill Prepared by the Attorney General to Really Divorce
the Railroads From Producing Corporations
Is Offered in House.


WAsHiNuToN. Dec. 3l.--TuE SuN here
with presents the text OF new Admins
traton anti-rust bill designed to
strengthen what is known as tho com
m0dtties clause" Of the interstate COM
merce act. by requiring railroads to di-
vorce themselves from any concerns that
manufacture, mine. produce or deal in
commodities transported by common car
ricrs.
The Mill was introduced by Represen-
tative Adamson OF Georgia. chairman OF
the House Committee on Interstate and
Foreign Commerce. II WAS offered a, the
instance Of Attorney General Gregory
and has been ndorsed by President VIII
son An effort will b. made TO put the
hill through a. this session, although the
Administration will not insist on it's
passage at this time
In the report OF the Attorney-General
statement was made that the commodi-
ties CLAUSE" had failed 20 attain the end
sought by Congress as the result OF in
depreciation by the courts. In passing
tho commodities clause" Congress
sought to prohibit railroads from cngag-
ing in such business as tho mining OF
coal or other production Of articles tranS-
ported In interstate commerce. This pro
h.bitlon was rendered ineffective by tho
formation Of subsidiary companies that
bought coal. for example. at the iuoTh OF
the mine. such subsidiaries. according
TO lawyers. being controlled by railroads.
Victory for Railroads.
IN the decision IN the case Of the Gov
eminent against thu Delaware and iiud-
ron Comapny tho court held that rail-
road does not necessarily have an In
a a. n - lEi los
featured or produced by bona fde. cor
poration Of which the railroad is
stockholder.'
Accordingly Attorney General Gregory
recommended changes In the law as out
lined In the Adamson bill. The bill pro.
vles that after January !. 1917, 1t shal
he unlawful for railroad to transport
I'm interstate commerce amy articles or
commodities" mined by such railroads or
under us authority directly or indirectly.
BY January I, l9iS. all railroads are re-
uiircd 10 dispose Of any interest stock or
otherwise, that they may hold in concerns
producing articles for transportation.
Violations OF the law are To be deemed
q misdcmeanor punishable by hnc not
exceeding 1000 or by Imprisonment. not
exceeding one year. or both. in the dis
,retion Of the court Tho text of III"
Atkinson bill Witch was written under
the direction OF the Attorney General. is
as follows:
prom and after January /. 1917. Il
shall he unlawful FOR any railroad com
pauy subject TO the act 10 regulate com
nerve. to transport I'm commerce any ar
urle. or commodities hereafter mauufac-
turcd. mined o. produced 90 nv "hcn
railroad company or under its authority
directly or indirectly, or 90 10y any per-
son. firm or corporation subject to its
control or to whose control u Is subject
through stock ownership or otherwise, Or
a. u, any corporation or association
which has the same controlling share
holders or members at II has. or is other
wise subject To the same control This
prohibition shall apply irrespective or
whether there is any relation direct or in
drcc. between the railroad company ana
the producer OF any article or Comnodi-
ties at the time ~ transportation
LoophoIe Blocked ~.
Section g. From aud aftc. That
date II shall also re unlawful for any
railroad company subject to the act to
regulate commerce 60 transport I'm COM
mcrcc any articles or commodities the
control of which or any interest in
mich. direct or indirect, shall have been
thereafter acquired iu any other man
ncr for the purpose u dealing therein
90 10y such railroad company or an
der it's authority directly OF indirectly,
or (2D by any person, firm or corpora
ton subject to It's control or to whose
control II IL subject, through stock own