The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-21
KNOCKOUT BLOW.
Supreme Court Hits Railroads
in Solar PIexus.
They Cannot Sell Their Own
Coal at Rebate Basis Price.
THE WAY is OPENED.
For the Successful Application
Of Rate Law.
Hepburn Bill Is Clearly Within
the Constitution.
THE WAY is OPENED.

Washington, Feb. Ply a decision
Of the supreme court handed down by
Justice White a bread extension of the
interstate commerce law has been estab-
lished as the law OK the land
1t was held that a railroad company,
which is a common carrier, could not
own and mine coal or own and transport
any other commodity and then sell that
coal or commodity below the market
price so as, in effect, to make the re-
duction a rebate on the cost of transpor-
tation.
The supreme court established the
broad general principle that reduction
in the price Of coal owned by railroad
a the mines might be used as an in
direct rebate of the transportation
charge. and. therefore, be prohibited by
the original interstate commerce law.
The decision IS d sensational one, be-
cause it seems to indicate the purpose
Ct the supreme court to interpret the in=
terstate commerce law in the Interest Of
the people and shippers as against the
railroads. To that extent this decision
has a direct influence upon pending
legislation in congress.
Paves Way for Rate Bill.
The court has broadened the inter
state commerce law to such an extent
IS to make it apparent that the rate reg
ulati0n bill passed by the house and
now pending in the senate is clearly
within the authority Of congress
This last decision of the supreme court
is one of a long line, every one Of which
has upheld the interstate commerce law
and has bToadened it with the excep-
ton of one which declares that the law
did not give the commission authority
to fix a specific reasonable rate. This
is what the pending L gislation proposes
to do, and with that corr ection the in
terstate commerce law will apparently
be impregnable so far as the supreme
court is concerned.
By the decision the supreme court
perpetually enjoints the Chesapeake &
Ohio railroad from carrying coal at less
than the published rates.
The decision was delivered by Justice
White, ard the effect VIII be far reach
ing and compel other railroads to aban-
don the practice which led to the suit
in which the decision was rendered.
Statement of the Case.
The Chesa peake & Ohio Railroad COM
pany had contracted to carry coal from
the Kanawha district in West Virginia
to Newport News and thence by water
to Connecticut for delivery to the New
York, New Haven & Hartford Railway
company at $2.75 per ton. The railroad,
after paying for the coal at the mines
and the cost of transportation from
Newport News to Connecticut, received
only % cents per ton for carrying the
coal from the Kanawha district to New
port News. The published rate for car
rying coal from this district to Newport
News was 81. As per ton.
Suit was brought by the interstate
commerce commission against the road
for violating the interstate commerce.
act which requires adherence to pub
lished rates. An injunction was issued
by the circuit court in West Virginia.
and an appeal taken to the supreme
court by the railroad company.
Plea of the Railroads.
The railroad company set up the claim
that. although the price which it receiv-
ed for the coal was less than the total
outlay, including its published rates,
this did not amount to a departure from
the published rates. and was not a dis
elimination for two reasons: First if
such difference existed it was a loss
suffered by the railroad, not for taking
less than its published rates. but be
cause it had received less as purchasers
than the coal had cost; second, that even
if it had not the lawful right thus to
compute the payment of the price of the
coal the railroad had already received
more than the price because the New
Haven road had a claim exceeding $780,
600 against the Chesapeake & Ohio
arising from a previous contract to de-