The herald-advance. (Milbank, S.D.) 1890-1922, 1909-08-27
RATECASF
THE INTERSTATE COMMERCE
COMMISSION GETS MAJOR
lTY DECISION
JUDGE BAKER DISSENTS
THINKS CONGRESS OUGHT TO
HAVE EQUAL RIGHTS
WITH CARRIER

territory lying between Buffalo. Pitts
burg and Parkersburg on the east,
and the Mississippi river on the west
are regarded as the greatest benefic-
iaries by a majority decision Of the
United States circuit court here today
permanently enjoining the interstate
commerce commission from enforcing
It's seaboard-Missouri river through
rate in the famous Missouri ri> er rate
case.
Inc opinion of Judges Closeup and
kohlsaat OBaker dissenting) if sus-
tanned by the supreme court of the
United States. will greatly curtail the
power of the commission over trans
portation rates, restricting it to a sort
Of police court adjudication of speci-
iic cases of alleged discrimination.
The rate-making power remains in
the hands of the railroads.
THE TWO CASES
n Missouri river cities which
would nave profited, had the COM
missions order been allowed to go in
to effect, benefit by the courts ruling
in the Denver rate case. In the lat
ter a temporary restraining order was
issued.
This case and the Missouri river
case are similar in principle. the for
mer concerning the commissions or
der Of a new and reduced through
rate Chicago and st. Louis
to Denver
The commissions order Of June "a,
1908, reduced the rates on frst-class
freight from the aboar to Missouri
river points from s1.4S to s1.3S. This
order was issued upon representation
of Missouri river business interests
that the seaboard rate Of $l.l5 to
Minneapolis and st. Paul was a dis
elimination against them, inasmuch
as the Twin Cities, using the cheaper
water rate of Missouri boats, were
able to undersell them in their own
territory on articles coming originally
from the s~eaboard. The seaboard
shipper shared in the profit, as seen
in the commission order, over his
competitors in the central traffic ter
ritory, who would not share in the re-
duced rate.
RAM DISCRIMINATION
According to the rouse sentiment
in Chicago, Milwaukee. Detroit, st.
Louis and other central traffic cities
the order was a rank discrimination
calculated to ruin their industries.
they were not aroused. however, by
the Denver casa Frhi- ,,r, ,,.,, 49,
Missouri river case over again. save
that the central traffic points and
Denver would reap the benefit of a
23-cent reduction in a through rate
which Missouri points woul not
enjoy. The Missouri river interests
were to be protected against the mid
die west, and Denver against the Mis-
souri, river. The seaboard had an
advantage in both rates.
In their opinion Grosscup and Kohl
saat held that congress in creating
the interstate commerce act had not
Intended to place the power in the
Il Of a few men to build I'D one
c".nmunity, or to ruin another. They
held that in ordering the through
rates at issue the commission had
greatly exceeded its powers.
BAKER DIssENTs
In dissenting Baker discussed this
pClnt at length, declaring the COM
mission, in ordering the through rates.
n ,G done nothing more than the rail-
loads have always done. AS the rail-
roads were extended west, he said.
new through rates We're constantly
made, and these rates We're less than
the joint rates. When a 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 be-
tween New York and Buffalo and But-
been continued to be made as the
railroads worked to the Mississippi,
the Missouri and beyond. The COM
mission, he said. merely attempted
to make a new rate on the same time
honored principle, moving the bas;ng
line from the Mississippi. to the Mis-
souri, river.
He declared that had the commits
sion not acted, the railroads would IN
time, with the growing wealth Of the
trans-Missouri country. nave follow
ed their w precedent and made a
through rate from the seaboard to
the Missouri.
CONGRESS HAS RIGHTS
St,ely, if the railroads have this
power, Baker argued. the commission
likewise a it If this power is TOO
dangerous to be in hands Of the COM
m~issioners. bound by the %sanctity OF
their oaths. did congress desire 10
leave it in the hands Of unbridIed cor
porations?
If congress annot constitutional
ly make a general declaration that
rates shall be reasonable. Baker con-
tinued, land not unjustiy discrimina-
tory. inc then trust an executive body
tO hear the avi6enca ~ q