Omaha daily bee., 1910-06-01
MUSTLOWER THROUGH RATES
Supreme Court Upholds Finding of
Commerce Commission.
CUT FROM RIVER TO RIVER
Decision Affects Tariff on Shipments
from Points ON Atlantic seabOard
to Points on MissourI-Den-
yer Case Also Affirmed

YER Case Also Affirmed.
WASHINGTON, May 31.-The long
contested order of the Interstate Com
merce commission, reducing the freight
rate between the Mississippi river and
the Missouri river as part of the
through rate on through shipments origi-
mating in the seaboard territory, was
today declared to be valid by the United
States supreme court. In so holding the
court reversed the lower federal court.
justice McKenna in announcing the
opinion, said the court hesitated to be-
lieve the commission sought to divide
the country into rate zones and neld thar
the record did not show that such had
been done.
The cont 'st began early in 1907, when
shippers, jobbers and wholesalers in
Kansas city, St. Joseph and Omaha filed
complaint with the Interstate Com
merce commission alleging that the
rates charged by the carriers operating
between points on the Atlantic sea-
board and Missouri river cities on traf-
fic originating at the seaboard and des
tined to these cities were unjust and nm
reasonable. After many hearings and
several parties had interviewed, an order
was issued by the commission directing
the railroads doing business between the
Mississippi river crossings and the Mis-
souri, river to reduce their rates as n
part OF the through rate on shipments
originating in seaboard territory.
Ihe railroads in the west and ship
pers, jobbers and Wholesalers in the
east out outside of the seaboard ter
ritory went into the courts. The circuit
court ha
ern district of Illinois enjoined the COM
mission from enforcing the order on N.
ground that it worked an unjust dis
elimination against the intermediate To-
calities and shippers.
The commission and business men in
Missouri river cities appealed from the
decision of the circuit court
Inc authority of the Interstate Com |
merce commission in issuing the order
uirectlng a reduction of the thSoueh |
Irelsht rates from Chicago and from St. |
Louis TO Denver, and the validity of that
order was today upheld by the supreme
court Of the United States.
ne supreme courts upholding the order
OF the interstate Commerce commission ra
uucihg the freight rate between the Mis-
sisslppl river and the Missouri river as a
part OF the through rate on through shin
Hehts originating in the seaboard territory
VIII mean saving of about $4,000 a wear
10 the Shippers of Omaha, Sioux CITY 81
Joseph and Kansas City. This is +ba
claim OF attorneys for the jobbers.
Attorney John Lee Webster, who renre
Seh'eu the shippers at the hearing before
the Interstate Commerce commission in
Washington about six weeks ago. said that
he does not wish TO give out a statement
the matter until he hears direct
from Washington.
Ihe shippers petitioned to the TntAr-
state Commerce commission" said Mr
W Wepster' to have the rates reduced on
Ireisht coming from Chicago to the Mis-
souri, river and tho request was granted
Dy the commission. This applied to all Of
me railroads and they in turn took the
natter 10 the United States circuit court
II Onicaso' asking for an Injunction 10
'leNe"t 'he ruling OF the commission from
,O"s into erect The injunction was
''an'eu ana the shippers and the Inter
'e NOinHlerce commission appealed the
'ase to the United States sunrep,a -. -
skiing that the Injunction be removed
from the brief telegram received bv tho
'apers 1t would seem that the court or
Tered the Injunction to be declared MN
md void and the reduced rates 10 90 inc
itect' but l can not tell the details unt,I
et FIRST Information from Washington
III the case is won in the manner which
indicated by the telegram received a.
'maha it will mean a great saving 70 tba
nippers OF the Missouri river section M
~ the nearing Edward b. Boyd, assistant
the vice president OF the Gould lines
estified that II the reduced rates wero
flowed to go into effect It would mean a
ivins Of $4,000 to the shippers OF Omaha
loux CITY, St Joseph and Kansas CIty
lone" ny
W. w. Johnson, assistant general freight
gent for the Burlington road. did not care
discuss the decision. He said: "A fellow
oesnt like to say anysn.ns against our
ipreme court At the same time we don't
Re to admit that they are right I'm this
lrueular instance. so our position is on
10 renee and We prefer to say nothing.
attorney William ID. McHugh, who rem
scented the railroads at the hearing IN
'ashlngton, was another silent memhar :
e confined himself to single exprasston
haven't anything at all to say about
lie matter"