Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-02-29
COMMISSIONS
RULING IS SET
ASIDE BfCOURT
Controversy Between Inter
state Commission and the
Commerce Court Render
ed Acute by Decision.

Washington, D. G., Feb. 28.-An or
der OF the interstate commerce com
mission reducing certain class freight
rates from New Orleans to Montgom
cry, Selma and Mobile, Ala, and tc
Pensacola, Fla, today was annullet
ny the decision Of the commerce court
The decision handed down by Judge
Archibald, is certain to add consider
able fuel to the controversy already
acute between the Interstate commerce
commission and the commerce court.
The court declares that congress
never intended to clothe the cOmmls
sion with the wide authority it has as
sumed. 1t was further asserted thai
the court could discover nothing In
the record to support the conclusion o.
the commission or to justify the reduc
tions In rates that it ordered.
The courts opinion concludes
Counsel for the commission and fol
the government simply rely on the
authority of the commission to deter
mine what Is q reasonable. rate and
the conclusiveness. OF its judgment
where 1t has done so, against which
it was argued. the courts can afford nc
relief unless the rate which has beer
fixed is shown to be conflscatory.
"This contention must be rejected. In
our opinion it was never intended to
confer on the commission any such
unrestrained and undirected power. II
is not within the authority Of the com
mis:ion to reduce the rates in this OF
any other case not merely against the
weight of the evidence produced to
sustain them but without anything sub
stantial to warrant the conclusion
reached or the reasons assigned there
fore.
"And this, we are convinced, is 9
case Of that character. Having regard
to the undisputed evidence adduced
at the hearing, the existing rates Were
not shown TO be unjust or unreason
able and there was, therefore, no vslid
basis for the commission's IS conclusion
This was the first case argued be
fore the commerce court after Its
establishment more than q year ago
It was brought by the Louisville &
Nashville railroad in an effort to moi
fy or annul the commissions order
Of reduction.
It was declared in the record that II
the order of the commission, fixing
what, In its opinion, were reasonable
rates, were enforced, the loss to the
Louisville & Nashville would be 5000,
900 a year.
The New Orleans board OF trade al
legged that discriminating rates against
New Orleans were made by the Louis
vile & Nashville and urged that that
city be put on an equality Of rates to
the southeastern territory with New
York, Baltimore, the Carolinas and
Virginia. The opinion of the court is
directly opposed to LAT contention.
Peavey Firm Wants Rehearino.
Washington, D. c., Feb. 2S.-On the
ground that the recent decision Of the
supreme court of the United States in
the grain elevator case" is being used
as a rank discrimination both as be-
tween shippers and localities F. H
Peavey & Co., and subsidiary com.
panies at Omaha and Kansas City pc
titioned the court for a rehearing.
U. s. to Recognize China.
4 The house committee on foreign at.
fairs today favorably reported the
Sulzer resolution, which, in effect
would recognize the new republic OF
China 1t congratulates the Chinese
people ION their assumption of the
powers, duties and responsibilities OF
self government