Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-08-24
COURT LIMITS POWER
interstate Commission En-
joined at Chicago.
RATE ORDER NULLIFIED
Alleged Unwarranted Exercise Of
Authority.
MISSOURI RIVER CASE DECIDED
Opinion Delivered by Judge Gross
cup-It Is Said That Matter
Will Be Taken to Supreme
Court.
MISSOURI RIVER CASE DECIDED

| CHICAGO, August 24.-The permanent
| injunction sought by western railways
against the interstate commerce commits
sion in the famous Missouri river rate
case was granted here today by Judges
Grosscup, Baker and Kohlsaat OF the
United States circuit court.
! Judge Grosscup delivered the opinion OF
the court, Judge Kohlsaat concurring,
while Judge Baker delivered dissenting
opinion.
The Missouri River Case.
The railroads in the Missouri river
case sought to have the interstate COM
mercc commission enjoined from enforc-
! ing an order Of the commission made
June "a. 1908, relating to joint rates from
| the Atlantic seaboard to Missouri river
! cities. This order sought to create sys-
tenn Of through rates from the Atlantic
seaboard to the Missouri river that were
a reduction from the sums of the local
rates. THIS. according to western roads.
threw the burden upon them.
The Joint rate now in force from the
! Atlantic seaboard to the Missouri river.
on first-class matter, is $1.47 per hundred
pounds The reduction proposed by the
commission was $1.3S. The through rate
now in force on the same matter from
the Atlantic seaboard 10 the Mississippi
| river is 81 cents, which plus the through
rate from the Mississippi river to the
Missouri river go cents) makes the same
| total. $1.47 per hundred pounds. as the
joint rate from the Atlantic Seaboard to
the Missouri river.
The commissions defeated purpose
would have allowed the Atlantic Seaboard
to deliver goods to Missouri river cities
on joint rate cents less than could
have been done if the shipments were
sent first to the Mississippi river and then
resent to the Missouri river.
In the Denver case 1t is said the sea-
board, by shipping direct to Denver
under the order Of the commission,
could save twentythree cents on first
class shipments and proportionately on
other classes, instead of re-shipping at
the Missouri. The shippers of the Mis-
souri, valley thereupon protested vigor-
ously that the enforcement OF the order
would discriminate against them.
Limiting the Commission.
Today's decision, If sustained. will, il
is said, limit the power OF the inter-
state commerce commission to the set
tlement OF cases of rate discrimination.
In the present case the railroads main
tain that the principle laid down by the
Interstate commerce commission would
be proper If applied to but one road,
but that it's application to more than
one would work hardship because Of
by each road The railroads also con-
tended that the reductions ordered by
the commission meant discrimination
against western manufacturers and
merchants In favor of. the Atlantic sea-
| board shippers.
| The commission. thus defeated In its
| first attempt to bring about what Is al
legged to be new system, principle OF rate
to the Supreme Court of the United states.
The petitioners for the injunction were
| the Chicago, Rock Island and Pacific, the
Chicago, Burlington and Quincy Railroad
| Paul Railway Company. the Chicago and
Northwestern Railway Company and the
| receivers Of the Chicago Great Western
| Railway Company ct al.
! The Illinois Central, the Santa Fe. the
Alton. the Missouri Pacific, the Frisco
| railroad companies and number of I'M
| portant shipping interests intervened as
| complainants.
The Interests Affected.
"The question raised.'' said Judge
Grosscup in rendering his opinion, lin
Its larger aspects is not SO much ques-
| ton between the shippers and the rail-
roads as between the commercial and
manufacturing interests Of Denver and
| of the territory east Of the Mississippi
| river on the one side and the commercial
and manufacturing interests of the Mis-
! souri, river cities on the other"
| BY the decision announced today the
Missouri river cities lose the advanta ge
| which the enforcement of the commits
sion's order would have given them.
! Besides granting the permanent irjunc-
| ton In the Missouri river rate case the
court also granted a preliminary injunc-
tion in the Denver rate case, which is
based on similar principles az the Mis-
| souri, river case. The Denver case, in
volving shipments to Denver instead OF
| r}x-ov n{yNfQ e CT
final decision on a demurrer filed by the
| interstate commerce commission to the
bill OF the complaining railroads.
Commissions Power Discussed.
| Speaking Of the power of the commits
sion the opinion says:
| I'VE are not prepared to say the COM
mission has not the power to enter upon
a plan looking toward a system of rates
wherein the rates for longer and shorter
/ hauis will taper downward according to
distance, providing such tapering is both
comprehensiycly and symmetrically ap-
plied-applied with a design of carrying
out what may be the economic fact that
on the whole ii Is worth something less
] per mile to carry freight long distances
than shorter distances.
| But Ii does not follow that power of
that character includes power by the use
of differentials. to artiticially divide the
| country into trade zones tributary TO
given trade and manufacturing centers,
the commission In such cases having, as
a result, to predetermine what the trade
and manufacturing centers shall be; for
such power vaster than any one body of
men has heretofore exercised. though
wisely exerted in specific instances. would
be putting into the hands of the commits
sion the general power of lite and death
over every trade and manufacturing GEN.
ter in the United States"
,tv~1-. do hot tf,s ,tz.
| in attempting to enforce its order sought
| to exercise this colossal power. The
| opinion states that much testimony was
heard from various sections of the coun-
try to show the effect the proposed new
rate would have.
Not Intention of Congress.
But in the case here. Judge Gross