Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1909-08-26
RATE BOARD SHORN
Of ITS POWER
ENFORCEMENT OF ORDER RE-
STRAINED BY UNIT ed STATES
CIRCUIT COURT.
BENEFITS OF RULING WILL COME
TO WISCONSIN AND CENT
RAJ TERRITORY.
JUDGE BAkEd DISsENTs-sAys
COMMISSION AcTEp WITHIN
AUTHORITY.

-+'~"S", aug. manufacturers
and producers generally of the terri
tory lying between Buffalo, Pittsburg
and Parkersburg on the east. and the
Mississippi river on the west are re-
garded as the greatest benefciaries
by majority decision Of the United
States circuit court here yesterday
permanently enjoining the interstate
commerce commission from enforcing
its seaboard- Missouri river through
rate in the famous Missouri river rate
case.
The opinion Of Judges Grosscup and
Kohlsaat Baker dissenting if sus-
tanned by the supreme court of the
United States will greatly curtail the
power Of the commission over trans
pOrtaIion rates, restricting it to a
sort Of police court for the adjUdica-
ton of specific cases of alleged dis
examinations. The rate making power
remains i'm the hands of the railroads.
Missouri river cities which would
have profted had the cOmmission's
order been allowed to go into effect,
will benefit by the courts ruling in the
Denver rate case. In the latter a
Temporary restraining order was is
sued. This case and the Missouri
river case are similar in principle, the
former concerning the commissions
order of new and reduced through
rates between Chicago and St Louis
10 Denver.
The commissions order Of June "a,
1908, reduced the rate on first class
freight from seaboard to Missouri
river points from $I48 to $1.39. This
order was issued upon the representa-
ton of Missouri river business inter
ests that the seaboard rate of $1.15
to Minneapolis and s.. Paul was a dis
elimination against them inasmuch as
the twin cities, using the cheaper
water rate of the Mississippi boats,
were able to undersell them in their
own territory on articles coming origi
naIly from the seabOard. The sea
board shipper shared in the profit seen
in the commissions order over his
competitors in the central traffic terri
tory who would not share in the re-
duced rate.
According to aroused sentiment in
Chicago, Milwaukee, Detroit, st. Louis
and other central traffic cities the or
der was a rank discrimination calcu-
lated to ruin their industries. They
were not aroused, however, by the
Denver case. This case was the Mis-,
souri, river case over again, save that
central traffic points and Denver
would reap the benefit of a % cent re-
duction in the through rate which Mis-
souri, points would not enjoy. Mis-
souri, river interests were to be pre-
tected against the middle west, and
Denver against the Missouri river. The
seabOard had an advantage in both
rates.
In their opinion Judges Grosscup
and Kohlsaat held that congress In
creating the interstate commerce act
had not intended to place power in
the hands of a few men to build up
one community or to run another.
They held that in ordering through
rates the commission had greatly ex-
ceeded its powers.
In dissenting, Judge Baker discussed
this point at length, declaring that the
commission, in ordering the through
rates. had done nothing more than
railroads have always done. AS rail
roads were extended west, he said,
new through rates were constantly
made. and these rates were less than
the Joint rates. When the railroad
from New York to Buffalo was eX-
tended, say TO Syracuse, the through
rate from New York to Syracuse was
less than the sum of the rates between
New York and Buffalo and Buffalo
and Syracuse. SO rates had been con-
tinued to be made as railroads worked
to the Mississippi, to the Missouri
and beyond. The commission, he said,
merely attempted to make new rate
on the same time-honored principle,
moving the basing line from the Mis-
sissippi to the Missouri river.
He declared that had the commits
sion not acted, the railroads would in
time. with the growing. wealth of the
trans-Missouri country, have followed
their own precedent and made a
through rate from the seaboard to the
Missouri
Surely if the railroads have this
mower. Baker argued. the commission
likewise had it. If this power is toe
dangerous TO be in the hands of the
commissioners bound by the sanctitg
Of their oaths, did congress desire te
leave If IN the hands of an unbridleo
corporations.
If congress cannot consttutionallH
make a general declaration that the
rates shall be reasonable, Judge Ba
lzer continues. and no. unjusty dis
crfminatory. and then trust an exc
cutive body Il. hear evidence then the
mower OF congress over rates would o'
worthless, for il would be utterly I'm
practicable for congress itself to maxi
enactments 10 cover specific instan