The Elk Mountain pilot., 1912-03-28
IMPORTANT
RATE RULING.
COMMISSION SAYS RAILROADS
MUST NOT DISCRIMINATE
AGAINST STATES.
DISREGARD S1ATEL|NES
RATES MADE FOR STATE TRAF.
FIG MUST BE ACCORDED IN
TERSTATE TRAFFIC.
western Newspaper Union News Service.


Washington.-In an opinion made
public recently the Interstate Com
merce Commission established the
far-reaching principle that 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, it must ac-
cord the same rate to interstate traf-
fic moving under substantially similar
conditions.
The principle was laid down by a
vote of four to three. The minority
held that the powers of Congress
were usurped by the majority opinion
and that the remedy for such situa-
tion should be applied through addi-
tional legislation.
The case practically precipitated a
conflict between federal and state au-
thority over the control of interstate
traffic.
The opinion of the majority by
Commiss, ,oner Lane is definite
assertion of the supremacy of
national regulatory authority over
the powers exercised by any state.
1t is the first time this as
sertion has been made distinctively
by the commission. Chairman Prouty
and Commissioners Clark and Meyer
concurred with Commissioner Lane,
and Commissioners Clements, Har-
Ian and McChord dissented
A proceeding bror=ht by the Louisi-
ana commission placed In issue the
right of interstate carriers to discrim-
mate in favor of state traffic and
against interstate traffic
''The gravamen of the complaint"
the opinion says, sis that the carriers
defendant make rates out of Dallas
and ether Texas points into eastern
Texas which are much lower than
those which they extend into Texas
from Shreveport. La.
A rate of sixty cents carries first
class traffic to the westward from Dal-
las, a distinct of 100 miles. while the
same rate of sixty cents will carry the
same class of traffic only fifty-five
miles into Texas from Shreveport"
The low rate within the state of
Texas was forced upon the railroads
by the Texas railroad commission in
furtherance of policy to protect and
promote the jobbing interests of Tex
as The Louisiana commission de-
clared that Louisiana was being dis
crimInated against because OF the ex-
action of the higher rates from Shreve-
port westward and demanded an ad-
justment. The contentious of Louisiana
were sustained by the commission.
The majority held:
That If a state by the exercise of
its lawful power established rates
which the interstate carriers make eff
fective upon state traffic, that carrier
does so with the full knowledge that
the federal government requires it to
apply such rates under like conditions
upon interstate traffic. To say that
an interstate carrier may discriminate
against intertate commerce because or
the order of state commission would
be to admit that a state may limit and
prescribe the flow of commerce be-
tween the states.
"An interstate carries must respect
the federal law and If 1t is also sub
iected to state law 1t must respect
that in so far as it can without doing
violence to its obligations under the
national authority"