The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-06-01
WHAT IT MEANS.
Attorney John Dawson Explains
Freight Rate Decision.
Affects Tariff Between New York
and Missouri River.
ALSO FARTHER WEST.
Makes Material Reductions From
Chicago to Denver.
Latter Move Opposed by Missouri
River Cities.

John S. Dawson, attorney for the
railroad board, when asked today about
the particulars in regard to the de-
cision of the United States supreme
court this week in the Denver rate
cases, made an explanatory statement
of Just what this decision means to ship
pers and as to it's effect upon the status
of western rates
Mr.. Dawson attended the hearing be-
fore the interstate commerce commits
sion and also the hearing in the United
States supreme court.
His statement follows:
1.-THE cases decided by the supreme
court of the United States, mentioned
in yesterdays dispatches, are what
traffic men call the Denver and MIS-
souri, river rate cases. The dispatches
are too meager to learn just what the
supreme court has decided out In, Ihe
matters in controversy were these: The
interstate commerce commission re-
duced the class rates from the Atlantic
seaboard to the Missouri river cities,
Kansas City, Leavenworth, Atch1son,
Omaha and Sioux City. The rate from
as follows: The New York rate to
Chicago is rs cents per cwt. on first
class freight, and this rate is made the
100 per cent standard for all rates east
of the Mississippi river; New York 70
the Mississippi river is 81 cents or 116
per cent of the rate to Chicago. The
rate from the Mississippi to the Mis-
souri, is an old established Missouri
state rate of so cents per cWt. on nrst
class freight,-a rate which the inter-
state commerce commission has fre-
quentIy denounced as too high. This
makes a rate from New York and the
Atlantic seaboard to all the Missouri
river cities thus: 81 cents plus 60 cents,
or $1.47 per cwt., and corresponding 10
this the lower classes of freight rates
are made.
The Missouri Rate.
TT has long been hoped by the In
terState Commerce commission that
the state of Missouri, either through
it's legislature or by its state railroad
commission, would reduce the 60 cent
rate between the rivers, and thus in
directly effect a reduction of the rate
from the Atlantic to Kansas City. The
part of the through rate allowed the
railroads east of the Mississippi from
New York to st. Louis, for instance,
is considered low. 1t is 1868 miles
from New York to St Louis, for which
the rate is 81 cents; while from St.
Louis to Kansas City the distance is
only $50 miles while the rate is so
cents.
Finally about two years ago the
Interstate Commerce commission re-
| QuC6Q the 1nLoF-FlN6T pTOpOTllOH VI
the through rate from the Atlantic to
the Missouri to 81 cents; and, on the
ground that this was merely an inter-
| ference with a state rate over which
| the Interstate Commerce commission
had no control, the carriers appealed.
On the ground that Atlantic seaboard
cities would rob Chicago, Detroit
Cleveland and st. Louis of a part OF
| the Missouri river trade, they like
| wise interviewed, taking the side OF
| the carriers.
"Sl1ch is the case of Burnham-Han-
na-Hunger, otherwise called the Mis-
| souri, river rate case, although a null
| titude of incidental points were raised
! and thrashed out The federal court
| in Chicago enjoined the Interstate
| Commerce commission from PUTTING
| the rates into effect, and an appea
was taken to the United States SUI
Dreme court where the lower court
| has Just been reversed. The commls.
/ sion orders a rate to be maintained
/ for two years, and as the litigation has
| occunied almost that time the order
| viii have to be renewed to be effec-
tive.
1.-The Denver rate case involves the
same general principles, only some o.
the litigants reverse their attitude a:
| to the law applicable to the latter case
| The rate from Chicago to Denver wa
| ordered to be cut from $2.O5 to Slso
and from ST. Louis to Denver the rate
was cut from $1S0 to $1.62. The Mis-
souri, river cities contended that these
| reductions would permit Chicago anc
ST. Louis to encroach upon leglt1mat'
Missouri river trading territory: So th'
rival interests of all these cities were
lust reversed from that maintained b!
each in the Burnham- Hanna Mungel
case. That undoubtedly operated II
| their disadvantage in the supreme
court.
1--WE will have to await the published
decision for full particulars but l ap
prehend that the supreme court adopt
ed the views of the dissenting opinion
of Judge Baker of Indianapolis. Judg
Grosscup, speaking for the majority
the court below, declared that the com
mission had no right to farm out tn
country into trading territories tribu
tary. to the great cities. Judge Bake
said that this farming had been don
by the railroads themselves, and tn
commission had merely dealt with tn
situation as it found it. 1t would ap
rear that Judge Baker was right, blu
it may be that the supreme court ha
| merely decided that the rates were to
high and were properly reduced, an
. | may have left US as much at sea
| heretofore on the main question, wh1c
is the legality of a system of rate
! making by either the carriers or tn
| commission where the country is par
celled off into zones of trade and mad
tributary to favored commercial cen
ters."
1