Omaha daily bee., 1909-09-03
Missouri RIVER RATE CASE.
Government Denied the Right 60 DO
what Railroads ne.

what Railroads us-
Springfield, Mass, Republican.
The United States circuit court az Chi
cago appears to take extraordinary ground
In It's disposition OF the Missouri river
rate cases. The issue as determined by
the court is not whether the rate order
Of the Interstate Commerce commission was
reasonable and Just. but whether that body
possesses power to make rate orders which
ave the effect Of establishing trade
zones tributary to given trade and manu-.
featuring centers." In the case at hand,
the railroads had made a rate from tho
Atlantic seaboRrd to the Missouri river
which was the sum Of the rates from the
seaboard to the Mississippi, and from the
Mississippi to the Missouri river. In con-
sideration Of the longer haul the commits
sion thought the seaboard-Misour river
rate should be a little less than the sum
of the rates for the two hauls.
We are not prepared. says-the court, ITO
say tho commission has not the power to
enter upon a plan looking toward a sys-
tenn OF rates wherein the rates for longer
and shorter hauls will taper downward
according to distance, providing such ia
pering is both comprehensively and sym
metrically applied-applled with a design
Of carrying out what may be the eco
monte fact, that, on the whole, II is worth
something less per mile to carry freight
long distances than shorter distances"
But-and here is the gist Of the decision: -
But Il does not follow that power OF
mat Character includes power, by the use
OF d~ifterentials, to artifically divide the
country into trade zones tributary to given
trade and manufacturing %centeTs, the com
to predeterm nESe w SssfS the nst traae as and manu- rSTT
featuring centers shall be; for SUCH power,
yaster than any one body OF men has here
totore exercised, though wisely exerted In
specific instances, would be putting into
the hands Of the commission the general
power or life and death over every trade
ana manufacturing center In the United
States.
So the commission Is permanently en-
Joined from enforcing It's reduction order,
whose effect would be to favor somewhat
the industrial interests Of the eastern
states and Missouri river points, as against
the manufacturing interests Of the Mis-
sissippi valley.
Discussion, however. of the fairness OF
the commissions order in the light of these
conflicting interests is precluded by the
courts decision, and we have only 10, con-
slider the legal right Of that body to lake
such matters into consideration. 1t in
wolves the exercise Of a colossal power,
say Judges Grosscup and Kohlsaat, and It
cannot be that congress ever Intended to
confer TIA power Of life and death over
every trade and manufactures center in
the United States" Yet IL the commits
sion possesses no such power, do not the
railroads possess II all, and may they not
exercise it as they will without any pub
lie restraint upon them whatsoever And
is II better that private corporations should
have and exercise absolutely this life-and-
death power over trade and manufacturing
centers than that the government should
have II, or than that the railroads should
have it subject to public control? And the
evident answer Of the judges is that it Is
better,
Indeed, It is the railroads themselves
which have divided the country into such
trade zones as are involved in the case
at hand, and the commission is merely
recognizing a fact or situation already de-
termined by the roads. And as a practical
matter It evidently must give some heed
to established situations Of this charac-
ter even In trying to carry out a funda-
mental and scientific reform in rate-mak-
ing. But the court says, or seems to say,
no, 1t Is for the railroads and not the
government or it's commission to recognize
and build up or tear down trade zones.
Congress never intended to confer this
power of life and death over trade cent-rs
upon the government commission7 The
Judges apparently SO contend. But will they
maintain the converse Of that proposition
that congress never intended TO interfere
with the exercise Of this life-and-death
power by the railroads2 II so. then they
are running head on against one of the
very first and greatest purposes of the
interstate act. Their position is
extraordinary, and should certainly be
brought under the review Of the United
States supreme court.