The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1910-03-08
ROAD WINS IN
HIGHEST COURT
Decision in So Called Port
land Gateway Case.
NORTHERN PACIFICUPH

Hill Line Objected to Order of Inter.
state Commerce Commission Com
peIling Joint Rate as Demanded
by the Union Pacific and Its Con.
tention is Sustained in Decision
Written by Justice Holmes.
washington, March S.-The North
ern Pacific Railway company won its
fight In the so called Portland gateway
case by decision of the supreme
court of the United States.
This controversy was over the at
tempt of the interstate commerce COM
mission to require the Northern Pa
cific to join with other railroads in
establishing through passenger
route and joint rates from the East to
Puget sound territory via Portland,
Ore.
In announcing the decision Justice
Holmes said that the commission had
power to require new route only
when no reasonable or satisfactory
way already existed. The reasons as
signed by the commission as to why
the Northern Pacific plan was not a
satisfactory or reasonable one could
only be maintained by giving the
words CT the statute an artificial mean
ing.
The Portland gateway case, as it is
known in railroad circles, originated
in an inquiry. instituted by the inter-
state commerce commission early in
1909, the purpose of which was to de-
termine whether joint passenger
route between Eastern points and Pu-
get sound points, the principal ones
being Seattle and Tacoma, should be
ordered by the commission by way of
the Union Pacific railroad to Portland
and from there over the Northern Pa
cific to the sound. The Northern Pa
cific, having its own line from East
the Union Pacific, whose line ends at
Portland, insisted that the arrange
ment be made.
Commission Orders Joint Rate.
After hearing the two roads the
commission ordered that the Chicago
and Northwestern, extending from
Chicago to Omaha, the Union Pacific
and allied companies, whose lines
reach from Omaha to Portland, and
the Northern Pacific, whose road con-
nected Puget sound and Portland, es-
tablish on or before July /, 1909,
through routes and joint rates for the
transportation of passengers and their
baggage from Chicago, Omaha, Kan
sas City and other places in that ter
ritory to points on the Northern Pa
cific railway between Portland and
Seattle. The rates were ordered to
be the same as those made by the
Northern Pacific for the entire haul
over its own line.
The Northern Pacific Immediately
appealed to the federal court of ap-
peals, sitting in st. Paul, for an order
restraining the commission from put
ting the ruling into effect. The COM
pany claimed 1t had line of it's own
for the entire distance, the revenue
from which was used, in part, to sup
port the large terminals in the Puget
sound district. 1t claimed that the
order of the commission was an in
justice in that 1t gave the rival lines
the use of those terminals without
taxing them with any of the expense.
The circuit court of appeals upheld
the claim of the Northern Pacific and
granted the Injunction asked. The
case was Immediately taken to the
United States supreme court and ex-
pedited under special law for that
purpose and with the consent of the
attorney general. The decision just
rendered in favor of the Northern Pa
cific settles the question and .estab-
fishes a precedent for all similar
cases.