The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1909-08-25
Court Decision in Missouri
River Rate Case.
INJUNCTION IS GRANTED
Interstate Commerce Commission En-
Joined by United States Circuit
Court From Enforcing an Order Re-
lating to Joint Rates From the At
lantic Seaboard to Missouri River
Cities,


Chicago, Aug. 25.-The permanent
injunction sought by Western rail-
ways against the interstate commerce
commission in the famous Missouri
river rate case was granted here by
Judges Grosscup, Baker and Kohlsaat
OF the United States circuit court.
The decision, if sustained by the
United States supreme court, will, it
Is said, limit the power of the inter-
state commerce commission to the
settlement of cases of rate discrim-
fnation.
The railroads in the Missouri river
rate case sought to have the inter-
state commerce commission enjoined
permanently from enforcing an order
OF the commission made June "a, 1908,
relating to joint rates from the Allan
TIC seaboard to Missouri river cities.
This order sought to create a system
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 STAT per hun
dred pounds. The reduction proposed
by the commission was $1.38. The
through rate now in force on the same
matter from the Atlantic seaboard to
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.
Effect Of Commissions Order
The commissions defeated purpose
would have allowed the Atlantic sea-
board 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 Mis-
sissippi river and then resent to the
Missouri river.
Speaking Of the power Of the COM
mission the opinion says:
1--WE are not prepared to say that
the commission has not the power to
enter upon plan looking toward a
system of rates wherein the rates for
longer and shorter hauls will taper
downward according to distance, pro-
viding such tapering is both compre-
hensively and symmetrically applied
applied with a design of carrying
out what may be the economic fact
that, on the whole, it is worth some
thing less per mile to carry freight
long distances than short distances.
"But it does not follow that power
of that character includes power, by
the use of differentials, to artifcially
divide the country into trade zones
tributary to given trade and manu-
featuring centers, the commission, in
such cases having as result, to pre-
determine what the trade and manu-
featuring 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 in the hands of the
commission the general power Of life
and death over every trade and manu-
featuring center in the United States"
The opinion holds that the commits
sion in attempting to enforce it's or
der sought to exercise this colossal
power.