The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-08-25
DECISION GIVEN
IN RAILROAD CASE
Famous Rate Contention Is Al
Last Decided
COMMISSIONS POWER CUT
Opinion Of Judges, If Sustained by
Supreme Court, Will Greatly
Limit Power of Com
meree Commission.
COMMISSIONS POWER CUT

Chicago, August Manufactures and
producers generally of the territory ly-
ing between Buffalo, Pittsburg and Par
kersburg on the east and the Mississippi
river on the west are rega rded as the
greatest benefciaries by the majority de-
cision of the United States court here
today 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 Grosseup and
Kohsaat Judge Barker dissenting) il
sustained by the supreme court of the
United States will greatly curtall the
power of the commission over Transport
tation rates, restricting to a sort of po-
lice court adjudication of specific cases
of alleged Determinations
The Missouri river cities which would
have profted had the commissions order
been allowed to go into effect, benefit
in the Denver rate case In the latter
q temporary restraining order was is
sued.
This case and the Missouri river case
are similar in principle, the Denver case
concerning the commissions order of a
new and reduced through rate between
Chicago and St Louis to Denver.
The commissions order of June, 1908,
reduced the rate on first class freight
from the seaboard least of Buffalo, Pitts
burg and Parkersburg) to Missouri river
points from s1.4S to s1.39 The order was
issued on representation of the Missouri
river interests, manufacturers and job
bers chiefly that the seaboard of s1.15
to Minneapolis and st. 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 in their own territory on arti-
cles coming originally from the seaboard.
The seaboard shipper shared in the profit
over his competitors in central traffic
territory who would not share in the
reduced rates.
According to aroused sentiment in
Chicago, Milwaukee, Detroit, St Louis
and other central traffic districts the
rate was a discrimination calculated to
ruin their industries They were not
aroused, however, by the Denver case.
This case was the Missouri case over
again, save that central traffic points
and Denver would reap the benefit of
23-cent reduction in the through rate
which the Missouri river points would
not enjoy. Missouri river interests
were to be protected against the mid
die west and Denver against the Mis-
souri, river The seaboard had an ad-
| vantage in both rates.
In tn cir opinion Judges Grosscup and
| Kohlsaat held that Congress in creating
| the interstate commission act had not
| intended to place a power in the hands
| of a few men-the power to build up
| one community or to ruin another They
| held that in originating the through
rates at issue the commission had
! greatly exceeded its power.
In dissenting Judge Baker discussed
this point at length, declaring that the
| commission in ordering the through
| rates had done nothing more than the
| railroads have always done.
As the railroads were extended west
he said, new through rates were con-
stantly made and these rates were less
than the joint rates. He declared that
had the commission not acted, the ran
roads would in time, with the growing
wealth of the trans Missouri country
have followed their own precedents ana
made a through rate from the sea-
board to the Missouri.
"SureIy, ii the railroads have this
power" Judge Baker argued, the COM
mission likewise has it. If this power
is too dangerous to be in the hands OF
commissioners bound by the sanclty OF
tn cir oaths, did Congress desire TO
leave it in the hands of unbridled cor
porations?
eff Congress cannot constitutlohaily
make a general declaration that the
rates shall be reasonable" Judge BAKER
continued. land not unjustly discrim-
natory and then trust an executive
body to hear evidence, the power
of Congress over rates would be worth
less for it would be utterly impfactlcd-
BILE for Congress itself to meet enact
ments to cover the specific instances