Omaha daily bee., 1909-08-25

sion was N.@. The through rate now In
force on the same matter from the Atlantic
seaboard TO the Mississippi river IL 81 cents,
which plus the through rate from the MIS-
sissippl river to the Missouri river O0 osnts)
makes the same total Of F.H per 100 pounds
as the joint rate from the Atlantic seaboard
to the Missouri river.
The commissions defeated purpose would
have allowed the Atlantic seaboard to de-
liver goods to Missouri river cities on a
joint rate 3 cents less tina could have been
done II the shipments were sent first to
the Mississippi river and then resent to the
Missouri river.
Court Limits CommiasiOn's Power.
Today's decision, II sustained. will, 1t Is
said, limit the power OF the interstate Com
mercs commission TO. the settlement Of ca-es
of rate discrimination.
In the present case the railroads maintain
that the principle laid down by the Inter
state Commerce commission would be pro-
per II applied to one road, but that its
application to more han one would work
a hardship because of the expense OF oper-
alton OF terminals by each road.
The railroads also contended that the
reductions ordered by the commission
meant discrimination against western man
ufacturers and merchants in favor Of the
Atlantic seaboard shippers
Speaking of the power OF the commission
the opinion says:
I'VE are not prepared 70 sRy that the
commission has the power 70 enter upon
a plan looking toward q system Of rates
where the rates, for longer and shorter
hRuls, will taper downward according 10
distance, providing such tapering In both
comprehensively and symmetrically APP
pl~ied-applied with a design OF carrying
out What may be the economic fact that,
on the whole, It is worth something less
per mile to carry freight long distances
than short distances,
But 1t does not follow that power Of
that character includes power. by the use
Of differentials, TO artificially divide the
country into trade zones, tributary to given
trade and manufacturing %centers, the COM
mission, in such cases, having as a result,
to prs-determine what the trade and man
ufacturing centers shall be; for such power,
vaster than any one body OF men has
heretofore exercised. though wisely ex-
erted In specific instances would be putting
In the hands Of the commission the gem
eral power of life and death over every
trade and manufacturing center In the
United States.''
the opinion holds that the commission
in attempting to enforce its order sought
to exercise this collosal power.
Juatice of Rate Not Considered.
The opinion states that much testimony
was heard from various sections of the
country to show the effect the proposed
new rate would have.
Blu In the case here" Judge Grosscup
continued, the q~eustlon involved is not a
question of fact, but a qeustion OF power
the question is not whether, by the appli-
cation of correct principles, q given rate
has been decided by the commission to
be unreasonable, but whether the prin-
ciples applied are themselves within the
power OF the con. mission; for congress did
not intend to confer upon the commission
power to do by indirectlon what it could
not directly do-did not intend to include
within the word reasonably every power
over the trade and manufacturing country
hat the commission should determine 1t
was reasonable that 1t uhe commissIon)
should possess
Again 1t is urged that though the ef-
feet of the order in the Missouri river
rate case is to discriminate in favor Of the
Atlantic seabOard and the Missouri river
cities against the central traffic territory,
and in, the Denver case in favor Of Denver
and the eastern Mississippi river country
against the Missouri river cities, the dis
elimination is not '.uudue'' with the mean
ing Of the Interstate act, and
that therefore the courts rave no power
to enjoin. The difficulty with this argu-
ment is that it draws no distinction be-
tween the power hat the commission is
actually given $50 . and q power that
the commission In usurpinK"
Judge Grosseup's opinion concludes;
ut must be understood, however, that
these two orders OF the commission are
enjoined solely because, in our judgment,
they lay upon the commerce and manufac
turing Of the localities affected an arti-
ficial hand that congress never intended
should be put forth and therefore are out
side the power conferred upon the com.
mission by congress. for with the question
Of a reduction in rate or a readjustment
Of rates, from which such artificial results
nave been eliminated, We are not now
dealing"
The Missouri river rate case" as it is
popularity called, was formally begun be.
fore the Interstate m commission
February l. 1907, when a complaint waS
drawn up and signed by a large number Of
Kansas City, st. Joseph and Omaha whole
salers.
The commission held a meeting. granted
in part the request of the Missouri river
jobbers, and the railroads took the matter
into the courts, where It has now beer
finally decided by the Issuance OF q perma.
nent injunction. The result Is a defeat fol
the compliments and a victory for the
railroads.
The original petition was directed
against st. Paul and Minneapolis, the Job
bers OF which towns enjoy the Mississippi
river basing rates. The effort was to throw
out the Mississippi river as a basing poin
on shipments coming to the Missouri from
the Atlantic seabosrd.
Omaha jobbers are not all discounted b.
the decision. Some OF them nave Figured
that the wiping out Of the Mississippi rive
as a basing point would be quickly followed
by similar action with regard to the Mis-
souri,, and the advantage which st. Pau
and Minneapolis have with regard to Kan