The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-04-02
GOVERNORS FILE
PLEA FOR STATES
Great Battle Over Railroad Rates
Is Begun in Supreme
Court

Washington, April, The battle
over state railroad rates for freight
ara passenger business began to-day
before the Supreme Court of tho
United States. The eighteenth Mis-
souri, rate case Were taken up for
consideration first. Time for arp,,.
ment was extended until next Thurs
day.
Frank Hagerman. OF Kansas civ.
Mo, hrst addressed tn. court. lie
lad the groundwork for an extend
cd argument that both the maximum
FIRE GIT rates OF Missouri and its
two-eent passenger Law meant con-
fiscation of the property of eighteen
railroads within the state.
Briefs similar TO that presented by
Governor Harmon were Tiled By per
mission OF the court by the attorneys
general of South Dakota, Ncbras ska.
Iowa, Kansas. Alabama and Okla
homa, and by the railroad commits
sions in Nebraska, Iowa. Kansas,
South Dakota, North Dakota, Okla
homa, Missouri and Texas. Each
state VIII be affected directly or in
directly by the decisions.
The plea OF the Governors. all OF
whom have been active in railroad
itS iHS .LN!Sstt!Oll. was III the
appeal from United States Circuit
Judge Walter Sanborn's decision III
the Minnesota railroad rate case IN
volvins the rich, OF State to regu-
late commerce within its borders.
Brief Drafted By Harmon.
The three Governors Eere empow-
cred to act as committees on state
rights at the Conference of Governors
az Spring Lake. y. Y. last September.
and were then authorized to seek TO
intervene in the Minnesota rate case.
The controversy in the courts, &C.
cording 10 tho brief which was drafted
by Governor Harmon, ana which was
immediately filed with the clerk of the
court, involved no conflict between the
States and The Federal authority. but
the more extraordinary question OF
whether railroad rights superseds and
dominate State rights.
The decision OF Judge Sanborn. the
brief contends. took the power OF
States 10 regulate railroads from the
States and left the railroads free TO
charge whatever rates they please in
their traffic within the States. He took
the stand that II a State cannot regu-
late the railroads within lis borders,
then there was no power 10 regulate
them al all
The appealed case grew out of that
OF Shepard versus Simpson. in which
the Minnesota railroad rate regula-
tions, particularly the 2-cent mile
passenger rate law. were attacked as
confiscatory.
Judge Walter Sanborn. who heard
the case in the Federal court, held
that exercise of the right OF States to
regulate railroad rates may be en-
joined by the courts because of the
actual or probable effect which i; may
be shown to have on interstate COM
merce through the operation on those
engaged therein of conditions of COM
petition, location OF commercial cen
tres and railroad lines. and of what
were called business necessities" The
local rates fixed by that State We're
held unlawful and entoined because
the court found tina. because OF them
carriers would have TO change exist
ing interstate rates. The States regu-
latlon of its own internal commerce
was for this reason held to be, In eff
feet, a regulation of interstate rates.
1t is not held in the Minnesota case
that the law was passed or the order
of the railroad board made for the
purpose of regulating interstate com
merce, according, TO the brief but only
that they are invalid because of their
effects on such commerce.
The brief declared the right or State
regulation extends to every business
conducted within It's borders, although
such business may also extend into
interstate commerce"