East Oregonian : E.O. (Pendleton, OR) 1888-current, 1910-02-22
RATE CASE
AGAINST 0. R. & N.
WoLVERToN HANDS
DOWN IMPORTANT DECISION
Holds Rates TO Points East of The
Dallcs To BE Prohibltive-Dcclsion
VII Probably Bring TO Close Long
Legal War Between Company and
Railway Commission.


learn that the Oregon railroad COM
mission has won another battle in Its
long rate war with the o. r. & N.
company The Portland Journal of
yesterday evening contains the fol-
lowing story
Federal Judge c. f. Wolverton this
morning handed down an opinion in
| the Oregon distributive rate case, sus-
tanning the demurrer of the Oregon
railroad commission and dismlssing
the amended bill of complaint of the
O.. R. & n. In all probability, the de-
cision of the court will bring to
close the legal battle between the
commission and the railroad
Judge WoNerton's opinion today
comes as a climax to n fight which
has lasted for two years between the
railroad company and the commits
sion. The clash was brought about by
the commissions order declaring the
railroad rates to Oregon points east
of The Dalles from Portland prohib-
tive, and reducing them one-seventh.
As its first action the O. R. & N
filed In 1907 a bill attacking person
ally the whole commission act for al
legged conflict with both the federal
and state constitutions 1t particu-
larly attacked the order of the COM
mission made in the action of the
Portland chamber of commerce
against the oregon Railroad & Navi-
CATION company
To the bill of complaint the defend
ant members of the state railroad
commission and the attorney general
interposed their demurrer.
On September 2S, 1909, Judge VOL
verton filed the opinion of the court.
in which he discussed at length the
question sought to be raised by the
| bill. He denied the application Of the
railway company for a preliminary in
junction making the commission or
der imperative
No Interfcrcnco
The comm ssion act was held 10
contravene none of the provisions of
the federal or state constitutions. and
was held not 70 amount to a constl-
[ tutiona, Interference with interstate
. commerce. The restraining order
however was continued in force for
period Of 20 days, pend ng the fill
. ing Of an amended bill of complaint
by the railroad company.
On November IS, 1909. the amend
ment to the bill was filed hy the rail-
road company The defendants de-
murrc3 20 the amended bill and at the
same time moved for the entry Of an
/ order dissolving the restraining order
/ issued in May. 1908 On November
. 80, 1909. the court denied the motion
/ to dissolve the restraining order
Last week the demurrer to the
amended bill was heard by Judge
! Wolverton, w W. Cotton appoar'nr
for the railroad company and Teal
Minor & Winfree for the railroad
/ commission.
q. Point Raised hy Cotton.
fThe point was particularly raised
BIZ Mr. Cotton that the railroad com
mission had exceeded its powers In
attempting to enforce the order regu-
latng class rates from Portland to
Oregon points east of The Dalles, and
had undertaken to regulate the rates
of freight upon the transportation OF
interstate as well as .ntrastate com
merce.
%Whether the rates prescribed ap-
ply depends on whether the freight
specified falls within the category of
interstate or intrastate commerce" +"
said Judge Wolverton in his opinion
today.
But this discussion brings back to
the proper Interpretation of the act.
4 have heretofore interpreted the rate
rs fixed as applying and intended to
apply to intrastate freight only. The
order here requires the complainant
|, to cease from charging any higher
|, rate, within the state for the trans
portftion of merchandise"