The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-08-24
Against Interstate Commerce
Commission Is Granted.
MISSOURI RATE CASE.
1t Will Be Appealed to the
Supreme Court.
Opinion Is Delivered by Gross
cup, Kohlsaat Concurring.

rate case was granted here today by,
Judges Grosscup, Baker and Kohlsaat
of the United States circuit court
Besides granting the permanent in
junction in the Missouri river rate case.
the court also granted preliminary
Injunction in the Denver rate case
which is based on similar principles as
the Missouri river case. The Denver
case involving shipments to Denver m
stead of Missouri river points is still
pending final decision on demurrer
filed by the interstate commerce COM
mission to the bill of the complaining
railroads.
Judge Grosscup delivered the opinion
of the court. Judge Kohlsaat concur
ring while Judge Baker delivered
dissenting opinion.
The commission. thus defeated in its
first attempt to bring about what Is al
legged to be a new system, or principle
of rate making, will, it is asserted.
carry the case to the supreme court or
the United States. ....
Parties to the Suit.
The parties which petitioned for the
Injunction were the Rock Island, the
Burlington, the Milwaukee. the North
western. and the Chicago Great West
ern railways. The Illinois Central the
Santa Fe, the Alton, the Missouri Pa
cific and the Frisco railways and
number of important shipping interests
interviewed as co-complainants-
Grosscup, in rendering his opinion, "in
its larger aspect, is not so much a
question between the shippers and the
railways as between the commercial
and manufacturing interests of Denver
and the territory east of the MISSISSIPPI
river on the one side and the CONNIE
cial and manufacturing interests of the
Missouri river on the other.
The railroads in the Missouri river
rate case sought to have the Interstate
,Se-cf Ion r.
manently from enforcing an order OF
the commission made June "a, 1905 re-
lating to joint rates from the Atlantic
sea board to Missouri river cities. rms
order sought to create a system OF
through rates from the Atlantic sea-
board to the Missouri river that We're
reduction from the sums of the local
rates. This, according to western roads,
threw the burden upon them.
Only Slight Reduction.
The joint rate now in force from the
Atlantic seaboard to the Missouri river
on first-class mattepais $1.41 a hundred
pounds The reduction proposed by the
was to $1.3S. The through
rate now in force on the same matler
from the Atlantic seaboard to the mis-
sissinni river is 81 cents, which plus the
through rate from the Mississippi river
to the Missouri river go centS) MAKES
the same total $1.H per hundred as the
Joint rate from the Atlantic seaDoard
defeated purpose would have allowed the
Atlantic seaboard to deliver goods TO
river cities on joint rate nine
&c nts less than could have been cone
if the shipments were nrst sent 70 ne
Mississippi river and then resent to the
Missouri river. In the Denver case II
is said the seaboard. by shipping olrect
to Denver under the order OF the com
mission could save % cents on nrst-class
shipments and proportionately on other
classes, instead of reshipping at the
Shippers of the Missouri valley
protested vigorously that the
of the order would ais
eliminate against them.
Limits Commissions Power.
Today's decision, if sustained. will, II
is said, limit the power of the inter
state commerce commission to the settle
ment of cases of rate discrimination. IN
the present case the railways maintain
that the principle laid down by the
commission would be proper ii appled
to one road, but that its application TO
more than one would work hardship
because of expense of operation of
terminals by each road. The railroads |
also contended that the reductions or |
iered by the commission meant dis
against western manufac-
-urerS and merchants in favor OF the
Atlantic. seaboard shippers.
Speaking of the power of the. conf
mission the opinion says: 4
I'VE are not prepared to say that the
commission has the power to enter
Upon a plan looking toward system |
Of rates. wherein the rates, for longer
and shorter hauls, will taper down
ward according to distance. providing
such tapering is both comprehensivelS
With design of carrying out what may
De the economic fact, that on the
whole it is worth something less per
nile to carry freight long distances
han short distances.
But it does not follow that power
If that character includes power. by |
he use of differentials, to artificially
iivide the country into trade zones
to given trade and manu-
acturing centers, the commission in
uch cases, having as a result. to pre- |
determine what the trade and manu-
acturing centers shall be; for such
power, vaster than any one body of
nen has heretofore exercised, though
wisely exerted in specific instances,
would be putting in the hands of the
the general power of life
md death over every trade and man
Featuring center in the United
States
Colossal Power.
The opinion holds that the COM
mission in attempting to enforce it's
rider, sought to exercise this colossal
power.
Judge GrosscuI continued:
1T is urged that though the effect of
he order in the Missouri river rate
ase is to discriminate in favor of the
Atlantie seaboard and the Missouri
liver cities against the central traffic
erritory, and III the Denver case in
avor of Denver and the eastern Mis-
issippi, RI er country against the Mis-
curl river cities. the discrimination is
OF sundu' within the meaning OF the |
Interstate commerce act; and that
hereore the courts have no power to
rjoin The difficulty with this argu-
lent is that it draws no distinction I
etween the power that the commission
: actually given and power that the
commission is usurping.
Judge Grosscups opinion concludes: