The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-04-01
Involved in Rate Cases
Which Come Up
To-Day.
MOST IMPORTANT
OF ENTIRE TER M
Rate Laws and Orders in Six
States Will Stand or Fall by
Observation-Disclosures Finding
Will Affect Practically
Every State in
the Union.

Washington. March 3I-Their bulk
and importance rank the group of
state rate cases to be taken up for
consideration tomorrow by the SUI
prcme Court az the biggest cases 30
come before that tribunal this term.
State rate laws and orders in Mis-
souri,. Kentucky, West Virginia. Ore
gen. Minnesota. Arkansas and Ohio
VIII stand or fall by the decision of
the court. State rate orders in prac-
tically every State of the Union Will
be swept out OF existence II the court
fnds that the orders and laws now in
question burden interstate commerce
The record in the Missouri cases
alone covers fuzzy 10000 pages This
represents more words than have been
uttered in both the House and Senate
during the present session of Con-
sress The Justices are supposed 10
digest this record and the 1000
pages of briefs besides.
The Minnesota cases are almost as
bulky, and have been referred to as
the most important.
Two Big Questions.
The validity OF practically all maxi
mum freight rates in the State, as
well as the 2-cent passenger law. is
involved. Two big questions are be.
Tore the court. The hrst,likew!se
arising in cases from the other SIX
states, is whether the reduction OF
state rates would require the rail-
roads to reduce similar Interstate
rates and IL such reduction of State
rates would be burden on interstate
commerce. The Minnesota Federal
Court held that IL would be such a
burden. The other question is whcth-
er the rates confiscate the property of
the railroads.
In arguing the latter question in the
affirmative, the lower court adopted
the reproduction cost new" of the
railroads as showing their fair yalu-
alton The State claims that was a
wrong basis. The State also objects
g the, use, az the gross. aa- ->t.-.sssk. =
me nasis Tor dividing the waite be
tween interstate and h1trastate bust
ness and between passenger and
freight rates.
In the Missouri case. maximum
freight and the 2-cent passenger laws
are involved. The Federal Court In
Missouri held the rates confiscatory.
but not a burden on Interstate com
Inerce. The controversy over valua
ton was avoided by an agreement to
regard three times the taxation valu-
alton as the fair values"
The Kentucky cases involves tho
constitutionallty of the State railroad
commission act and the validity Of
reduced rates on distillery Supplies
| from Kentucky cities on the Ohio
RIVER TO inland cities. The railroads
lost on both points in the lower
Fed eral courts.
The West Virginia Cusc.
The West Virginia controversy re-
lates merely 70 the validity OF the .
cent passenger law. The Supreme
Court OF West Virginia held it did
not burden interstate commerce and
was not conflscatory. Unsuccessful
attacks were made on the law he.
cause OF its penalty clause and It's
applicability only to steam railroad
and not to electric railroads
Inc oregon cases are almost identi-
cal with the Kentucky cases. The
consttutionality OF the State railroad
commission act and the validity of
rates from Portland TO other Oregon
cities in the eastern and southern
parts OF the State are involved The
lower Federal court upheld the law
and the rates.
In the Arkansas cases. the maxi
mum freight law and the cent
passenger law were found by the
Federal District Court to be confisca-
tory. The valuation vas placed at
twice the taxation valuation.
! In the Ohio case, the only question
involved is the validity of State
rate. fixed by the Ohio Railroad Com
mission, on steam coal from Eastern
Ono to Lake Erie Pittsburgh vein
| operators objected to the rates on the
| Wheeling and Lake Erie. The rail-
road contends that the freight is in
terstate commerce transhipped at
Cleveland and Huron Ohio. for Lake
cities in other States. The railroad
| won below