Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-08-24
PERMANENT INJUNCTION ISSUED
AGAINST INTERSTATE COM.
MERGE COMMISSION.
DECIDES FAMOUS MISSOURI
RIVER RATE SUITS
Commission Defeated in Its First At
tempt in New Principle of Rate Max
ing, Will Carry Case to United State.
Supreme court-Pre'imnsry Injune-
tion Issued in Denver Rate Case.

injunction sought by western railroads
against the interstate commerce COM
mission in the fameus Missouri river
rate case, was granted here today by
United States Judges Grosscup, Baker
and Kohlsaat.
The commission. thus defeated in its
first attempt, being about what is al
legged TO be the new system or principle
of rate making. will. it is asserted, car
ry the case to the supreme court of the
United States
injunction in Denver Case.
The court also granted preliminary
Injunction in the Denver rate case.
which Is based on the same principles
as the Missouri river case. The rail-
roads in the Missouri VI case sought
to have the interstate commerce COM
mission enjoined permanently from en-
forcing the order of the commission
made June "a. 1908. relating to joint
rates from the Atlantic sesboard TO
the Missouri river cities. This order
sought to create q system OF thru
the Missouri river that were a reduc-
ton from the sums of the local rates.
This, according to the western roads,
threw the burden upon them.
Would Mean Lower Rates.
The commissions defeated purpose
would have allowed the Atlantic sea-
board to deliver goods to the Mis-
souri, river cities on a Joint rate Of 9
cents less than could have been done
If the shipments were first sent to the
Mississippi river then resent to the
Missouri river. Today's decision, If
sustained, will 1t is said, limit the pow
er Of the interstate commerce commits
sion to settlement Of cases Of rate
Determinations. Grosscup delivered the
opinion in which Koblsaat concurred.
Baker filed dissenting opinion.
The parties which petitioned for the
injunction were the Rock Island, Bur-
Mngton, st. Paul, Northwestern, Great
Western, Illinois Central. Santa Fe,
Alton, Missouri Pacific and Frisco
railroad companies, and number Of
important shipping interests inter-
vened as co-complainants.
Commercial Question Involved.
1.-THE question raised" said Judge
Grosscup in rendering the opinion Sin
its larger aspect is not so much a
question Between the shippers and the
cial and manufacturing interests Of
Denver and 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"
Questions Rate Making Power.
Speaking Of the power of the COM
mission the opinion says:
I'VE are not prepared to say the
commission has not the power to enter
upon plan looking toward system
of rates, wherein rates for longer and
shorter hauls will taper downward ac-
cording to distance, providing such
tapering Is both comprehensively and
systematically applied-applied with
the design OF carrying out what may
be an economic fact, that, on the whole
it Is worth something less per mile to
carry freight long distances than short
distances.
Has Too Much Power.
"But 1t does not follow that power
Of that character includes the power
by the use of differentials, to artificla!ly
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. tho wisely
exerted in specific cases, would be put
ting in the hands Of the commission
the general power OF life and death over
every trade and manufacturing center
in the United States"
The opinion holds the commission in
attempting to force its order sought to
exercise this colossal power.