The San Francisco call., 1908-10-01

Dilard would like to do. We shall let
lie court know shortly.
Judge Gilbert then announced that
he matter would be brought up this
nornine at 10 O'Clock Late In the
afternoon Peter F. Dunno, after a con-
tultation in which he, billiard and Cot
.on took part, announced that an
amended complaint would be filed this
morning.
The attorneys representing the inter-
state commerce commission and the
government We're jubilant over the re
suit OF the rate case. which is the first
ct which the peculiar powers of the in
terstate commerce commission have
been tested.
Luther NJ. Walter. counsel for the
commission. who came TO San Fran
cisco from Washington for the express
purpose OF trying the case, would dis
cuss the matter but briefly, bat he
spoke on the deep significance Of the
fecisiOn. He said:
COMMISSION GRATIFIED
The Interstate commerce commits
sion is gratifed at the view of the Hep
burn rate bill which the court has
taken in this decision. This bill was
urged by President Roosevelt and the
courts act is a vindicatiOn Of the pres
ident's position and contention. that
congress could and should make stat
utes to control the charges made by the
railroads
President Roosevelt made the enact
ment Of this statute one OF the most I'm
portsnt results OF his administration,
Tor the court to have held IL invalid
would have gone far TO have nullined
the work OF Roosevelt"
in reviewing the decision Joseph n.
Teal, special counsel for the lumbermeni
said:
The proceedings in this case were an
attack on the constitutionality of the
Hepburn act, in that it delegated TO the
interstate commerce commission both
legislative and judicial powers TO hx
rates in the future. On that point the
court held the law TO be constitutional
The railroad claimed that the COM
mission. in reviewing q rate or fixing
81, could not consider the history of the
rate, the conditions under which it was
made or the effect il would have on the
industry affected. These points were
raised directly and were fully argued.
and as the court sustained the demurrer
IL follows that the commission has the
power to consider these questions fully
in making rates. Without those pow
ers its Investigations would be limited
and OF little value.
OF NATIONAL IMPORTANCE
The court also was asked by the
complainant 10 go into the whole ques
.tion of rates as if it We're the commits
sion and TO pass upon the reasonable
ness OF rates; TO substitute its judg
ment for the commissions as TO just
what amount would constitute a rea-
sonable rate. While the court IN an
nouncing its opinion simply sustained
the demurrer. this question was in
VOlved and must have been considered.
The decision is of national Importance,
and il the law had been found TO be un-
constitutional or the commissions
power so limited that il could act only
in an advisory capacity the usefulness
OF the commission would have been re-
tarded and the contest for the regula-
tion Of the common carriers would
have TO be gone over again"
Peter +. Dunno, in giving the rail-
roads views on the decision. said: The
court sustained the demurrer upon the
ground that II did not allege any fraud
nor miscOnception Of the law in the
action taken by the commission and be-
cause, inasmuch as the report and opin-
ion Of the commission were made part
OF the bin, the allegations OF the bill
did not meet the facts set forth in that
opinion with sufficient fullness and
particularity as going to the point that
there was a deprivation Of property
without due process Of law. We shall
amend our bill and ask for a prelim-
nary Injunction. We DO not understand
the court TO hold that the action of the
commission on the facts as to the rea-
sOnableness OF the rate is conclusive,
or that the equity Jurisdiction OF the
court TO determine whether the carrier
has been unJustly deprived Of its prop
erty can be constitutiOnally transferred
to an administrative body"
FIRST TEST CASE
One feature of the case just passed
upon is that il is the first one in which
the power of the interstate commerce
commission 10 establish single com
modify rate has ever been tested There
We're other considerations than the rea-
sonableness OF the rate involved in the
opinion Of the commission when estab-
fishing the rate, particularly the rights
Of the shipper TO a certain rate which
would make it profitable for him to
move his commodity. In this case the
commodity was rough lumber, for
which the only market was San Fran
cisco.
The Oregon and California and the
Southern Pacific companies adopted
rate Of S3.1O per ton eight years ago to
enable the shippers 10 compete with
coast lumber that was shipped by
steamer and schOoners. Recently that
rate was raised to IS per ton. The
water rate was much less. being s425
per 1000 feet. while the rail rate from
the interior valley was equivalent TO
1888 per 900 feet
The shippers appealed to the inter
state commerce commission for
restoration OF the old rate. The COM
mission, after a hearing. set the rate at
$40. It was this rate which the Har-
rimam interests sought TO enioin