The Birmingham age-herald., 1912-03-25
Interstate Commerce Com mission Declares Present
 Rates Unreasonable
NEW RATES Q BECOME EFFECTIVE BY MAY 1
Commission Declares Road Must so Adjust Rates That Justice Will Be Done Between
 Communities

Washington, March 24.-The inter- state commerce commission. in an opin- aon made public today, established the far-reaching principle tha. a railroad must so adjust its rates that justice will be done between communities re- gardless of state lines. If railroad makes low rate upon traffic wholly within state. even when forced to do so by a state commission, 1t must iaccord the same rate 10 interstate traf- sic moving under substantially similar conditions.
 The principle was laid down by a vote of to 8. The minority held that the powers of Congress were usurped by the majority opinion, and that the remedy for such a situation should be applied through additional Legislation. The decision was in the case of the railroad commission of Louisiana against the St. Louis and Southwest ern railway and other carriers oper- ating between Louisiana and Texas. Clash Between Authorities The case practically precipltated n clash between federal and state au- thorities over the control of interstate l traffic. The opinion of the majority of the interstate commerce commission, prepared and handed down by Commis- sioner Lane. is a definite assertion of the supremacy of national regulators authority over the powers exercised by any state. It is the first time this as- sertion has been made distinctly by the commission. In making 1t, Chair man Prouty and Commissioners Clark and Meyer concurred with Commission .er Lane and Commissioners Clements. Harlan and Mccord dissented.
 t The proceedings brought by the Louisiana commission placed in issus the right of interstate carriers 10 dis crimnate in favor of state traffic and against interstate traffic,
 ''rhe gravemen of the complaint" the opinion says, lis that the defend- ant carriers make. rates out of Dallas ard other Texas points into eastern Texas which are much lower than thoss which they extend into Texas from Shreveport, La. A rate of 50 cents 7 ferries first class traffic from the east vard of Dallas distance of 160 miles, while the same rate of so cents will carry the same class or traffic only 55 miles into Texas from Shreveport"
 The low rate within the state of Texas was forced upo-- theA railroads by the Texas railroad commission in furtherance of a policy to protect and pronlote the jobbing interests in Texas The Louisiana commission and that states commercial interests declared that Louisiana was being dscriminated against because of the exaction of the higher rates from Shreveport westward
 
 rates. The contentious of Louisiana were sustained by the commission ab- solutely The majority held:
 Present Rates Unreasonable
 That the present class rates from Shreveport to Texas points were un- reasonable and prescribed lower rates, which must be put Into effect by May l.
 That the present relation of rates. pastbound and westbound from Shreve- ffort. gives an undue preference to Dal- las and Houston and other Texas cities anG the carriers are ordered to mak o the same rates on w-stbound as on eastbound traffic 4t
 That if state. by the exercise Of It's lawful power. establishes rates which the interstate carrier makes ef- fective upon state traffic, that carrier noes so with the full knowIedge that
 
 ;Apply such rates under like conditions upon interstate traffic To say that m interstate carrier may discriminate against interstate commerce because of The order of a state commission would be to admit that a state may limit and prescribe the flow of commerce between the states
 The conclusion of the majority opin- Ion is a vigorous assertion of the par lmount authority of the national gov krnment over all interstate traffic.
 Must Respect Federal Law K"An interstate carrier must respect the Federal law, and if it is also subjected to state law. 1t must respect that in so far As it can without doing violence to his obligation under the national authority. Before us are carriers which undeniably discriminate directly against interstate traffic. To this charge they plead that all they have done was to obey the orders of the state commission. as against which they were helpless. They applied to no rourt for relief. nor to this commission. When the state of Louisiana, after years ' of endurance. makes complaint 10 this body, these carriers make no showing of tthe reasonableness of their rates other Than that heretofore dealt with-a traffie ldjustment equalizing gateways-and even ln this defense all carriers do not join &rhe class rates of the Texas commission
 
 hot too low This the cafriers themselves 10 not urge. Yet they have maintained higher rates from Shreveport, the inter- )tate point While the Texas commission has evidenced a policy of home protection For it's own state cities, there is every av- 6eDce that the carriers moving into and rithin Texas accepted this policy as theiy. )wn, claiming that not to have adopted It would have led to especial state ali- ihorities. Such conditions may not exist nnder this act The state carrier which Adopts a policy, even under state direc- lion that makes against the interstate Hts eyes open and fully conscious of it's &4 responsibilities to the federal law, which K guards commerce among the states discrimination
 Clements Dissents
 Commissioner Clements. in his dissent hg opinion maintains that the comnis- lion has transcended its authority He charges that the situation which devel- ,ped between Louisiana and Texas 'can snly be reached by additional egslatior, md that the commission in it's decision has usurped the powers of the Congress Commissioner Harlan dissented from p.he majority opinion on substantially the tame grounds. as he holds that the ma l lority opinion is insecure" because 1t lows from . process of reasoning that is