The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-06-01
DECISION is HANDED DOWN UP.
HOLDING COURSE or commls.
SION IN RATE CASE.
NOT ASSUMED
Contention Of Roads That Effort Was
Made to Create Rate Zones Is Not
Provsd--Counsel Asks Thirty Days to
File Petition for Rchcaring IN Inter.
est OF Further Delay.

Washington, May -. BY u decision
Of to .. the supreme court of the
United states today decided that the
Interstate commerce commission had
not exceeded It's power in ordering tho
reduction OF freight rates Ia the So
called Missouri river rate cases and In
the Denver rate cases. These orders
were held To- bc 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.
an order reducing the rates on
through freight from Chicago and
from ST. Louis To Denver.
In both cases certain railroads and
shippers concerned claimed the COM
mission was endeavoring To divide the
country into rate zones. The circuit
court for the northern district OF H.
llnois decided tnis contention was
correct. The supreme court today In
"a decision announced by Justice Me-
Kenna. announced that Il believed
that the commission was not attempt
ing to exercise such power and that
the record showed no evidence that
such was being done. Hence. II re-
versed the decision of the district
court in both cases.
The. cases have received the great
Ian. Il k.s
they have been the subject of litiga-
tlon. The government contended the
very existence OF through rates was
at stake
In 1906, George J. kindel, a manu-
factnrer of Denver, complained To the
Interstate commerce commission that
the freight rates from New York and
Chicago and from st. Louis and
Omaha were excessive and discrlm-
NATIVE 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
making Denver a basing line, The
commission came to the conclusion
that the alleged discrimination against
Denver was due to the fact that the
Missouri river WAS used AS IA baslng
line and that instead of having n
through rate from the east to Den
yer. the railroads were giving Colo
RADIO points "a combination of the rates
to the Missouri river and the rates
from the Missouri To Denver
Consequently IL was ordered that by
May | the railroads should put into
effect reduced rates from Chicago and
st. Louis To Denver, Before the rates
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 4
jurisdiction and that the court erred /
In It's decree the commission appealed
Ia the supreme court The decision I
Df the supreme court was based on
the reasoning in the Missouri river 1
rate ease announced just before. to 4
he effect that the record did not show 4
he commission was trying to divide |
The country into rate zones. a power IL /
did not possess.
Justice white delivered q dissenting |
opinion In which Justices Lurton and /
Holmes concurred.
Counsel asked the court to give /
ihem 30 days to file petition for re-
hearing, Solicitor General Bowers |
objected on the ground that such |
would prevent the rates from going |
nto effect before the court met next |
October, Chief Justice Fuller directed I
hat the mandate of the court issue |
n 30 days unless a petition for re- !
rearing was filed.