New-York tribune., 1911-04-09
ROADS WIN RATE CASE
sweeping Effect Of Decision in
st. Paul Litigation.
UPHELD ON VITAL POINTS
s.ate Commission Made Practi-
cally a Body of statisticians,
Saws Former Official.

=. paul. Aprii s.-Judge Walter H. San
cantor United States Circuit Judge
,rdic,al Circuit in an exhaustive opin-
,..dav decided the Minnesota rate cases
-.,,s, the members of the Minnesota
80. Railway Commission. He held that
-. necessary effect Of the reductions or
80 was Substantially to regulate inter
-. commerce. TO create unjust discrimi-
rot,ons between localities In Minnesota
"a those IN adjoining states. in violation
:, ,be commercial clause OF the Constitu-
.,o, and 70 take the properties OF the rail-
"a companies without just compensation
:. ,ioiation OF the Fourteenth Amendment
% the Constitution.
The suits were brought by stockholders
- .he Northern Pacific Railway Company
.,e Great Northern Railway Company and
.he Minneapolis e. ST. Louis Railroad Com
,snv against those companies, the Attor-
~ General and the members OF the Rail-
-.ov and Warehouse Commission OF Minne-
s,,s 10 enioin the reduction OF the pas
..nqor rates In Minnesota from three cents
% two cents a mile, the merchandise rates
oa ner cent 10 Is per cent, ana the COM
modify rates 7.S7 per cent.
The railroad companies had put all these
..arct,ons. except that on commodity rates.
,... .0.c. and the cases were begun and
,-,od after the effect Of these reductions
had become proyahle. Full PROOF OF the
,scts ~ the case was submitted, covering
many months. before Charles +. Otis' spe-
cial master. VINO reported the facts ana
recommended DEGREES in favor OF the STOCK
holders.
Judge Sanhorn entered DEGREES To-Day
which affirm the report Of the master ana
enioin the enforcement of the reductions
after June /. 1911.
The Opinion.
iIe holds in his opinion;
The acts of the Legislature OF MIN
reeota of April 1. 1891, Chapter -, reuuo
ing passenger fares within the stale 49, 49,
al 3 per cent, and of April ls' l%'' nc
to- 222 reducing commodity rates "l'nli'
Inc state about 737 per cent. and the oI
5are II its Railroad and Warehouse COM
mission Of September 9, 1906, REDUCING sen,
.rsl merchandise rates within tne stale seo.
rom % 10 25 per cent ana or Ma! o, lSv''
r.ducinc in-rates within the state 10 u1s-
,ributing points. by their natural and nee
.ssary effect substantially burden anu ".
recty regulate interstate commerce, Ce'
.,s Undue and unjust determinations De
.rssr localities in Minnesota and those IN
sSiosine states. violate the commercial
'isrse Of the Constitution. Article l, sec
lion and are void.
MAXIMUM fares and rates that bring from
fhsi- respective Minnesota lntrastate DUST
,esses 10 the Northern Pacinc Company
an annual net income OF only ZsVt per celt'
20 fhe Great Northern Company an an.
rual net income Of only 1883 per cent ano
N rbA Minneapolis & 81. Louis Company an
annual net income of only 24's per cent ol
the respective values OF their Mlnnesota
nrorerfies devoted 70 those businesses, pro-
hihit fair return upon these values
,ske the properties of the companies with
out lust compensation. Violate the -Four,
,eenth Amendment TO the Constitution and
are void
> The power 70 regulate commerce amons
The states was granted by the people 10
rhe nation in the Constitution, is exclusive,
may be exercised to its utmost extent oy
the use of all means requisite 10 It's COM
ulete exercise. and no state, by virtue OF
is police power or any other power IL pos
sesses may restrict this grant or the prem
sry exercise Of this power. for these lnnere
IN the supreme law OF the land ana are
paramount 10 the powers OF the states.
/. The fares and rates Of transpor-
mon IN interstate commerce are not IN
F, character susceptible Of uniform resulatloil;
ana 50 far as the nation has not regulated
them are free from regulation by virtue OF
TIE commercial clause OF the Constitution
Interstate Commerce.
8 The naton may regulate interstate
fares and rates and all interstate COM
merce. To the extent necessary com
pletey and effectually to protect the 1ree-
dom o.. ana 20 regulate interstate com
merce but no further, II may by Its con-
gress and its courts effect and regulate
iutlastGte commerce.
TO the extent that 1t does not suostan-
italy burden or regulate interstate COM
nerce state may regulate intrastate com
meTce and the fares and rates therein
within It's borders. but no further. II may
lenfOrce regulations OF intrastate commerce
shd It's fares and rates which only incicen-
tally or remotely affect interstate commerce.
But state laws. orders and regulations con-
ctrning intrdstate commerce, or tne iafes
or rates therein. which substantially pur-
Gen or regulate interstate commerce. or tie
fares or rates therein. are beyond the pow
ers OF the state unconstitutional and vold.
And where the attempted exercise Of the
power of state 10 regulate lnuaState
commerce, or the attempted exercise of any
o. It's other powers. impinses upon or con
ficts with the constitutional power CT the
nation 10 protect the freedom Of and 70
regulate Interstate commerce and the fares
tnd rates therein, the latter must prevail.
because that which is not supreme must
F'eld 70 THAI which is supreme
4 g. The effect and neither the terms
nor the purpose Of state regulations deter
imlnes whether they substan tially burden or
only incidentally or remotely affect inter
state commerce.
And this Is a judicial question which each
court must decide on It's own responsibility
On the special facts of the case before IL
and in the decision of which lit must exer-
cse the Constitution rather than the law
making department of the government
The nation has tho power TO for-
@ eie snS B. the sSs s to bss segas5fh paohbed dS
undue Determinations in different states