The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-08-24
Western Railroads Gain a Great Victory
Over the Government in Missouri
River Rate Case.

Chicago. Aug 94.-The permanent
Injunction sought by western railways
against the Interstate Commerce COM
mission 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 opin-
Ion of the court. Judge Kohlsaat con-
curing. while Judge Baker delivered
a dissenting opinion.
The commission. thus defeated in
its first attempt to bring about what is
alleged TO be new system, or pTin-
ciple of rate-making, will. 1t is assert
ed, carry the case TO the supreme
court OF the United States.
The parties which petltioned for the
injunction were the Rock Island. the
Burlington. the Milwaukee. the North
western, and the Chicago Great West
eln railways. The Illinois Central, the
Santa Fe. the Alton, the Missouri Pa
ciic and the Frisco railroads and
number OF important shipping inter
ests interyened as co-complainantS
THE question raised" said judge
Grosscup in rendering his opinion, "in
its larger aspect, is not so much a
question between the shippers and the
railroads as between the commercial
and manufacturing interests of Den.
yer and of the territory east of the
Mississippi river on the one side and
the commercial and manufacturing In.
terests OF the Missouri river cities on
the other"
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 10 Joint rates from the At
lantic Seaboard to issouri river cities.
This order sought to create a system
OF through rates from the Atlantic
seaboard to the Missouri river that
were n reduction from the sums of
the local rates This, according to
western roads, threw the burden upon
them. -----------
-rhe joint rate now in force from
the Atlantic seaboard to the Missouri
river on first-class matter Is s147 a
hundred pour.-s. The reduction pro-
posed by the commission was TO 81 IS.
The through rate now in force on the
same matter from the Atlantic sea
board to the Mississippi river is 81
cents, which. plus the through rate
from the Mississippi river to the Mis-
souri, river (60 cents makes the same
total. Sl.i7 per hundred. as the Joint
rate from the Atlantic seaboard 10
the Missouri river.
The commissions defeated purpose
would have allowed the Atlantic sea
board TO deliver goods To Missouri
river cities on joint rate nine cents
less than could have been done If the
shipments were sent first to the Mis-
siSsippi river and then resent 10 the
Missouri river. In the Denver case.
1t is said, the seaboard by shipping dl
rect to Denver under the order OF the
commission could save % cents on
frst-class shipments, and proportion
ately on other classes, instead OF re-
at the Missouri. Shippers OF
the Missouri valley thereupon pro
tested vigorously that the enforcement
OF the order would discriminate
against them.
Today's decision. if sustained. will.
II is said, limit the power Of the In
terstatc Commerce commission to the
settlement of cases of rate discriminn-
ton
In the present case. the railroads
maintain that the principle laid down
by the commission would be proper
II applied to one road, but that It's
Application TO more than one would
work hardship because of the eN-
pensc OF operation OF terminals by
each road
The railroads also contended that
sion meant discrimination against
western manufacturers and merchants
n favor of the Atlantic seaboard ship
oers.
Speaking of the power of the COM
the opinion says,
I'VE are not prepared TO say that
he commission has the power 10 en-
er upon plan looking toward a sys-
EN- of rates wherein the rates. for
onger and shorter bauls. Will taper
downward according to distance, pro-
llding such taperIng Is both compre-
lcnsiyely and symmetrically applied
applied with a design of carrying
nut what may be the economic flct,
hat. on the whole, II IS worth some
hing less probable to carry for the |
ong distances than the short dis
ance. But does not follow that pow"
IT OF that character includes power.
~ the use of differentials- TO artitic- |
ally divide the country into traffic |
zones tributary 10 given trade and |
centers. the commits !,
ion. In such cases. having as a result. |
% predetormlne what the trade and |
conters shall be; for |
such power. Vaster than any one body /
II men has heretofore exercised, |
hough wisely exerted in specific In
stances would be putting I'm the hands
II the commission the general power
# life and death over every trade
md manufacturing center In the Unit
I'd States"
The opinion holds that the commits
ion. in attempting to enforce its or
Ter. sought 10 exercise this colossal
,ower.
Judge Crosscup continued:
1T is urged that though the effect
# the ordor in the Missouri river
ate case Is To discriminate In favor
# tho Atlantic seaboard and the Mis-.
.ouri river cities against the central
rafic territory. and in the the Den
.cr case In favor Of Denver and the |