The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-06-01
Supreme Court Upholds Order
of Commerce Commission
Reducing the Freight Rates
From Chicago and st. Louis.
RAILROADS FIGHT HARD,
BUT ARE .VANQUISHED
Interstate Commerce Commits
sion Order in Missouri River
Rate Cases Also is Upheld
by the Highest Tribunal,
THREE JUDGES DISSENT

w WASHINGTON, May 3I.-By n de-
" cision OF four TO three, the SUI
states today decided that the inter
state commerce commission had not
exceeded it's power In ordering the re-
duction of freight rates in the So
called Missouri river rate cases and In
the Denver rate cases
These orders were held 60 be valid.
The Missouri river rate cases were
based on an order OF the commission
reducing the freight rate between the
Mississippi river and the Missouri
river as part OF the through rate on
through shipments originating in the
seabOard territory. The Denver rate
cases were based on an order reducing
the rates on through freight from Chi
cagO and from St Louis to Denver.
In both cases certain railroads and
shippers concerned alleged the COM
mission was endeavoring to divide the
country into rate zones. The circuit
court for the northern district or H.
linois decided this contention was cor
rect. The Supreme court today, in a
decision announced by Justice Mcken-
commission was not attempting to ex-
ercise such a power and that the rec
ord showed no evidence such was be-
ing done. Hence II reversed the de-
cision OF the district court In both
cases.
Received Great Attention.
The cases have received the great
est attention during the two years
ton. The government contends the
very existence OF through rates was at
stake.
In 1906. George J. KindeI. a manu-
facturer of Denver. complained TO the
Interstate commerce commission that
the freight rates from New York and
Chicago and from 81. Louis and Omaha
were excessive and discriminative, and
the rates from Denver TO salt Lake
City also excessive and preferential, as
compared with the rates from Kansas
CITY
The Denver chamber of commerce
interviewed to insist that the proper
way to eliminate the alleged discrim-
ination against Denver was not by re-
ducing rates to Denver. but by making
Denver a basing line.
The commission came to the concur
sion that the alleged discrimination
against Denver was due to the fact
that the Missouri river was used as a
a through rate from the east 70 Den
yer. the railroads were giving ColOrado
points a combination Of the rates 70
the Missouri river and the rates from
the Missouri river to Denver.
Reduced Rates Ordered.
Consequently. II was ordered that BY
May ] the railroads should put INTO eI-
feet reduced rates from Chicago ana
went into effect, the railroads took the
matter into the United states district
court for the northern district OF IL
linois and had the commission en-
Joined from enforcing the order.
on the grounds that the court had no
Jurisdiction and that the court erred IN
its decree. the commission appealed 10
tire Supreme court. The decision OF
the Supreme court was based on the
reasoning in the Missouri river rate
case announced just before. to the et-
feet that the record did not show the
commission was trying TO divide the
country into rate zones. a power II did
not possess. Justice White delivered
a dissenting opinion. in which Justices
Lurton and Holmes concurred.
As to the Missouri river rate cases,
the order OF the interstate commerce
commission reduced the freight rate
between the Mississippi river and the
Missouri river as a part OF the through
rate on through shipments originating
In the seaboard territory 1t was to-
day declared to be valid by the United
States Supreme court. and in so holding
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