New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-24
Holds Interstate Com
MERGE Commission Can
not Examine Them.
RIGHT OF SEARCH
NEVER INTENDED
Oil Companies Lose Claim to
Rich Western Lands With.
drawn by Taft.

Washington. Feb. 23.-Ihe clam OF
the Interstate Commerce Commission
that II possessed the right 10 examine
all Of the correspondence and private
records of the railroads of the country
was rejected in emphatic terms by the
United States Supreme Court to-day IN
an opinion in the case OF the Louis
Vile & Nashville Railroad.
The court declared there was no
basis in the interstate commerce act
for the claim of the right Of unlimited
search. and that the railroad was act
ing within its rights in denying to the
examiners Of the commission accession
to its private records and correspond
ence. Mr.. Folk, counsel for the com
mission, contended in his brlet thAI II
had been given such power by Coh-
gress. ,,,
The case grew out Of the resolution
offered nv Senator Lea calling on the
Interstate Commerce Commission Tor
data regarding the issuance of passes
NV the railroad. The examiners insisted
on searching all of the Mes OF tnS
Louisville & Nashville company ana
were elected from the office. Inc mat,
ter was then carried 70 the courts ana
to-day's decision is the result.
Justice Day, who delivered the
courts opinion, said the act was ue-
signed TO prevent Justification or ac-
counts and destruction of records
Never Sugg ted by Commission
"There is nothing" said Justice Day,
"to suggest that the provisions OF the
act we're intended (, include CORE.
snondence relating 10 the business OF
railroads. In recommending the pas
sage of the act the commission did not
suggest that il was essential 70 us
purposes 70 have an inspection OF the
correspondence Of railroads.
There is nothing, from the begin,
nin7 to the end Of the section referred
10. TO indicate that Congress had IN
mind that it was making any provision
concerning correspondence received oI
sent by railroad companies. Inc PHI
mary object to be accomplished was
establish a uniform system OF &C
counting and bookkeeping and PROVIDE
70. the inspection thereof. Al u IN
tended to permit the commission 70 ao-
thorize examiners - selZe an CoIIe-
spondence Of every nature, Congress
would have used language adequate TO
that purpose.
The court pointed out that the com
mission itself had drafted the language
of the statute which empowered 1t to
inspect accounts, records and memo
randa, and drew the conclusion that
the leaving out of specific authorize
ton for an inspection Of correspond
ence was intentional and recognition
that such inspection was not necessary
for the proper regulation of railways.
The court did not pass on the con-
stitutional right Of Congress TO pass a
law to inspect correspondence
Oil Companies Lose Lands.
Long acquiescence by Congress in
executive Withdrawals of public lands
from entry was held by the Supreme
Court to-day to have had the effect OF
recognizing the existence OF TINS rlght
the President. So the court sus-
tanned the action of President Taft in
1909 in withdrawing from entry thou
sands of acres Of rich oil lands in Cal
ifornia and Wyoming for conservation
/ by the government. Justices Day, Nc
Kenna and Van Devanter dissented.
ION oil companies, which obtained en-
tries after the Taft withdrawal, but
before legislation by Congress provid-
ing for withdrawal, lose their claims
on lands valued at millions of dollars.
San Francisco, Feb. 23.--Vast oil in.
terests in California and suits involving
many millions Of dollars are vitality af-
fected by to-day's decision of the Su.
preme Court Of the United States con-
firming withdrawal by President Taft
of oil lands in this state and the prin-
oiple under which he acted.
About 2,87l 900 acres Of oil lands In
California are confirmed to the govern
ment, officials here say, and an oil
supply for the navy Is thus considered
assured. Hundreds OF thousands OF
dollars impounded from proceeds OF
oil taken from this land goes 10 the
| government by effect of the decision
and it is said that $40,00O,0O0 in devel-
| opment work was done on the land
which is forfeited by the entremen.
Titles claimed by more than a hun
dred companies and individuals are
made void by the decision, and half a
dozen suits, involving as much as $780,
| 600, 900 each, are said TO be disposed OF
automatically in the governments
Il