Los Angeles herald., 1909-08-25
INJUNCTION is
MADE ENDURING
IN RATE CASE
APPLICANTS IN MISSOURI SUIT
CLAIM DISCRIMINATION
COURT AT CHICAGO GRANTS PER-
MANENT ORDER
Take Appeal from Decision to U.
S. Supreme TribunaI-Denver
Secures Victory
[By Associated Press. ]

and producers in the territory be-
~ tween Buffalo, Pittsburg and
Parkersburg, on the east. and the Mis-
sissippi river on the west are regarded
as the greatest beneficiaries by the ma
jority decision of the United States cir
cult court here today, permanently en-
Joining the interstate commerce com
mission from enforcing its seaboard-
Missouri river rate in the Missouri
river rate case.
The opinion of Judges Grosscup and
Kohlsaat Judge Baker dissenting) II
sustained by the supreme court of the
United States will greatly curtail the
power OF the commission over trans
portation rates, restricting it to sort
of police court adjudication of specific
cases of alleged discrimination.
The commissions order of June "a,
1905 reduced the rate on first class
freight from the seaboard to Missouri
river points from $l.4S to $1.39 This
order was issued on representation of
the Missouri river interests that the
seaboard rate of $1.15 to Minneapolis
and st. Paul was a discrimination
against them, inasmuch as the twin
cities, using the cheaper water rate of
the Mississippi points were able to un-
dersell them in their own territory who
would not share in the reduced rate.
ACCORDING TO cOl1lHneTCldl pOuleS III CHi-
cago, Milwaukee, Detroit 81. Louis and
other central traffic cities, the order of
the commission was a discrimination,
calculated to ruin their industries.
Permanent Injunction Granted
The permanent injunction sought by
the western railroads against the inter-
state commerce commission in the ia
nous Missouri rate case, was granted
here today by Judge Grosscup, Baker
and Kohsaat OF the United States
court.
Besides granting the permanent IN
junction in the Missouri river rate case
the court also granted a preliminary
Injunction in the Denver rate case,
which is based on similar representa-
tions as the Missouri rate case.
The Denver case, involving shipments
to Denver instead of Missouri river
points, is still pending final decision on
n demurrer filed by the interstate COM
merce commission.
Judge Grosscup, delivered the opinion
of the court, Judge Kohlsaat concur
ring, while Judge Baker delivered dis
senting opinion.
The commission, thus defeated in
it's first attempt to bring about what
is alleged to be new system, or prin-
ciple, of rate-making, will it is as
serted, carry the case to the supreme
court of the United States.
The parties which petitioned for the
injunction were the Rock Island. the
Burlington, the Milwaukee, the North
western and the Chicago Greatwest-
ern railroads.
The Illinois Central. the Santa Fe,
the Alton, the Missouri Pacific and the
Frisco railroads. and a number of i'm
portant shipping interests intervened
as o-complainants.'
Question of Commercial Interests
"rhe question reduced" said Judge
Grosscup in rendering his opinion, lin
its larger aspect, Is not so much
question between the shippers and the
railroads as between the commercial
and manufacturing interests of Den
YER and of the territory east of the
Mississippi river on the one side, and
the commercial and manufacturing in
terests of the Missouri river cities on
the other
"The railroads in the Missouri river
rate case sought to have the inter-
state commerce commission enjoined
permanently from enforcing an order
of the commission made June "a, 1908,
relating to Joint rates from the At
lantic seaboard to Missouri river cities.
This order sought to create a system of
through rates from the Atlantic sea-
board to the Missouri river that was a
reduction from the sums of the local
rates. This, according to western
roads. threw the burden on them
"The joint rates now in force from
the Atlantic seaboard to the Missouri
river on first-class matter is $1.47 a
hundred pounds. The reduction pro-
posed by the commission was to $1.3S.
The through rate now in force on the
same matter from the Atlantic sea-
board to the Mississippi river is 81
cents, which, plus the through rate
from the Mississippi river to the Mis-
souri, river (60 cents), makes the same
total, $1.47 per 100, as the joint rate
from the Atlantic seaboard to the
Mississippi river.
Rate Might Have Been Lowered
"The commissions defeated purpose
would have allowed the Atlantic sea-
board to deliver goods to Missouri
river cities ON a joint-rate cents less
than could have been done if the ship
ments We're sent first to the Mississippi
river and then resent to the Missouri
river.
I'm the Denver case, it is said the
seaboard, by shipping direct to Denver
under the order of the commission,
could save 23 cents on first class ship
ments and proportionately on other
classes, instaed of reshipping at the
Missouri. Shippers Of the Missouri
valley thereupon protested vigorously
that the enforcement of the order would
discriminate against them"
Today's decision, If sustained. will,
1t is said, limit the power of the in
terstate commerce commission to the
settlement of cases of rate discrimina-
ton.
In the present case the railroads
maintain the principle laid down by
the commission would be proper, if ap-
piled to one road but that it's applica-
tion to more than one would work a
hardship because of the expense of
operation of terminals by each road
The railroads also contended that the
reductions ordered by the commission
meant discrimination against western
manufacturers and merchants in favor
of the Atlantic seaboard shippers.
Speaking of the power of the COM
mission, the opinion says: 'We are
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