Omaha daily bee., 1909-08-25
Majority of Court Holds Commission
Exceeded Its Powers.
JUDGE BAKER DOES NOT AGREE
Says Commission Should Have as
Much Power as Railroads.
ORDER IN DENVER CASE
Enforcement of Cut from Chicago
and Sc. Louis 90 Colorado Also
Held Up-This Benefits
Missouri River Cities.

CHICAGO, Aug. 2A-Manufacturers and
producers generally in the territory be-
tween Buffalo, Pittsburg and Parkers-
burg, on the east, and the Mississippi river
on the west are regarded the greatest
beneficiaries by the majority decision OF
the United States circuit court here today,
permanently enjoining the Interstate Com
merce commission from enforcing its sea-
board Missouri river through rate in the
famous Missouri river rate case.
The opinion OF Judges Grosscup and
Kohlsaat (JudEe Baker dissenting), II sus-
tained by the supreme court Of the United
States, will greatly curtan the power OF
the commission over transportation rates,
restricting 1t to sort of police court ad-
judication of specific cases Of alleged dis
elimination. The rate-making power re-
mains in the hands of the railroads.
Order in Denver Rate Case.
The Missouri river cities, which would
have profited had the commissions order
been allowed to go into effect benefit by
the courts ruling in the Denver rate case.
In the latter temporary restraining order
was issued.
This case ana the Missouri river case are
similar In principle, the former concern
ing the commissions order Of a new and re-
duced through rate between Chicago and
st. Louis to Denver
The commissions order OF June "A, 1908,
reduced the rate on first-class freight from
the seaboard (east OF Buffalo, Pittsburg
and Parkersburg) to Missouri river points
| from 1.lS to S1.39. This order was issued
upon representation of the Missouri river
interests - Manufacturers and jobbers
chiefly-that the seaboard rate Of f1.15 to
Minneapolis and st. Paul was discrimina-
ton against them, inasmucn as the Twin
Cities, using the cheaper water rate from
the Mississippi, were able to undersell them
In their own territory on articles coming
originally from the seaboard. The sea-
board shipper shared in the profit seen In
/ the commissions order over his competi-
tors In central traffic territory, who would
not share in the reduced rate. According
to sentiment aroused in Chicago Milwau-
kee, Detroit, St. Louis and other central
traffic cities, the order was a discrimina-
ton calculated to ruin their industries.
They were not aroused, however, by the
Denver case. This case was the Missouri
river case over again, save that central
traffic points and Denver would reap the
benefit OF a 23-cent reduction In the
through rate which the Missouri river
points would not enjoy. Missouri river
interests were to be protected against the
middle west and Denver against the Mis-
souri, river The seaboard mad an advan-
4 tage in both rates.
| No Power over Through Rates.
In their opinion Judges Grosscup and
Kohlsaat held congress in creating the in
terstate commerce act had not intended
| to place a power in the hands of a few
men to build up one community or to ruin
another. They held that In ordering the
through rates at issue the commission had
greatly exceeded its powers.
In dissenting Judge Baker discussed this
point at length, declaring that the COM
mission in ordering the through rates
had done no more than the railroads have
always done. AS the railroads were ex-
tended west, he said, new through rates
were constantly made and these rates were
less than the joint rates. When the rail-
road 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 SYRIA
cuse. So rates had been continued to bc
made as the 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 bssing line
from the Mississippi TO the Missouri river.
He declared that had the commission not
acted the railroads would in time, with
the growing wealth OF the trans-Missouri
country. have followed their own pre-
cedent and made a through rate from the
seaboard TO the Missouri.
Judge Baker Makes POtnt.
Surely II the railroads have this power
Judge Baker argued, the commission like
wise has 1t. II this power is too dan
gerous to be in the hands OF commissioner
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