The Washington herald., 1912-03-25
DEALS HARD BLOW
TO STATE POWER
Commerce Commissions De-
cision Extends Fed
eral Rule.
FRESH ISSUE is RAISED

A decision has just been handed down
by the Interstate Commerce Commission
In a case brought by the railroad COM
mission OF Louisiana against the St
Louis Southwestern Railway, and other
carriers, which constitutes the longest
and most important step ever taken by
that body in curtailing the powers OF
State railroad commissions. The de-
cision. IL sustained. will. II is contended.
lead TO the elimination OF State railroad
commissions, or leave them compara-
lively little Jurisdiction or authority.
The real defendent in the case is the
railroad commission of Texas. inasmuch
as the rates against which complaints
were made and which have now been set
aside by the Interstate Commerce Com
mission were fixed by It..
VIII Be Appealed.
The whole question Of Jurisdiction be-
tween the Interstate Commerce Commits
sion and the State railroad, commission
Is put sQuarely up to the United States
Commerce Court, and eventually will be
brought before the Supreme Court in a
more comprehensive manner than Is
afforded by the well-known Minnesota
rate case now pending before the high
est court.
The present case resulted IN a sharp
division In the commission Four COM
missIoners Joined in setting aside the
rates Of the Texas railroad commission.
and three dissented from this action. The
commissioners who united in the major
ity opinion are Chairman Prouty and
Commissioners Lane. Meyer, and Clark.
The dissenting members of the commits
a. T,,A- ~ Z
Harlan, and Charles c. McChord.
The Case at Issue.
The complaint in the case was that the
railroads make rates out OF Dallas and
other Texas points into Eastern Texas
which are much lower than those which
extend into Texas from Shreveport. La.
As an instance. II Is stated that a rate
OF 50 cents carries first-class traffic to
the eastward Of Dallas a distance OF 16o
miles. while the same rate of 50 cents
will carry the same class OF traffic but
IS miles into Texas from Shreveport. The
complaint asked the commission for an
adjustment OF rates that would be just
and reasonable from Shreveport into
Texas. and TO end. IL possible, the alleged
unjust discrimination practiced by these
interstate railroads in favor OF Texas
State traffic and against similar traffic
between Louisiana and Texas. Letters
and decisions of the Texas commission
are cited. showing that Its policy is to
protect Texas shippers and manufactur-
ers from outside competition.
The decision of the commission. which
was written by Commissioner Lane, says
that the evidence supports the theory OF
the Louisiana commission that the Texas
commission is acting In loco PARENTS TO
the jobtfng interests OF Texas. and that
Il is not the function of railroad TO
equalize the commercial advantages of
cities.
The decision reviews adjustment of
rates by the Texas commission, and says
that the effective exercise of the Inter
state Commerce Commissions power re-
garding interstate commerce makes
necessary the assertion of the supreme
authority OF the national government.
and that the Congress has appropriately
exercised this power in the provisions of
the act to regulate commerce, touching
discrimination"
The railroad commission of Texas. while
invited to be heard. was not represented
at the hearing. 1t Is considered a fore
gone conclusion that the commission will
promptly take the case to the Commerce
Court.