The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-04-01
Governors File Brief Against TAX.
ing Away Power to Regulate
the Railroad Rates
INHERENT RIGHTS AT STAKE
Adverse Decision Would Give the
Railroads Great Power
TRANSPORTATION LINES WOULD
BE FREE TO CHARGE WHAT
EVER RATES THEY
PLEASED.

Washington April 1.-The governors
Of the states as q body today filed their
solemn protest with the supreme court
of the United States against the propo
sition to strike down state roilroad
rates as interfering with interstate
commerce. They respectfully called
upon the bench. having in especial
charge the Covenant OF the Union" -
see that the boundaries of the states
remain. Ii was the first time in the
history of the nation that such pro-
test had been made
The protest took the nature of "a
brief. filed as friends of the court" by
"A committee of governors. Judson Har-
mon, of Ohio. Herbert s. Hadley. of
Missouri; and Charles II. Aldrich. of
Nebraska. This committee was Sc
lected at a conference of governors
last September. The brief was sub
United in connection with the state
rate cases" set for oral argument to-
day.
Brief of Peculiar Interest.
The brief was OF peculiar interest
coming so soon after the most recent
decision OF the Interstate Commerce
Commission that railroads. submitting
to low state rates, must give similar
rates on interstate business.
Because the federal circuit court In
. oh a.ats
rate cases held the rates invalid not
only as conhscatory but by rca son of
their effect on interstate commerce,
that ease was taKen as the text ior
the governors protest. 1t was declared
that what was said went directly TO the
right Of every state TO regulate state
commerce, and was designed particu-
larly to be applicable TO the Minneso-
IN, Missouri. Oregon. Kentucky. Ohio.
Arkansas and West Virginia rate cases
before the court. The governors had
nothing to say about the coniiscatory
nature of the rates, but confined them
selves to the interstate phase of the
qeustion.
The committee Of governors set forth
the claim that because Minnesota had
required the railroads To reduce their
rates from such cities as ST. Paul
Mimi. to Duluth, Mimi, on the state
boundary the interstate business of
the railroads from ST. Paul, had been
effected. Similar conditions, it was
stated, were To be found i'm Kansas
city, Kan. and Kansas City, Mo-; East
ST. Louis ILL.,, and st. Louis, Mo-:
Omaha, Neb.. and Council Bluffs. Iowa
Cincinnati. Ohio; and Covington and
Newport. Ky.
State Rights involved.
The vice of the Minnesota decision.
ii was urged. was not in an incorrect
in the plain disregard of the provisions
of the federal constitution. which es-
tablished the relation Of the nation and
the states by giving one control over
Interstate matters and the other con-
troll over state affairs. 1t was admitted
that there might be some effect on
interstate commerce when states reg
ulate state rates, but il was asserted
time and again in the brief that If a
railroad enjoys reasonable return un-
der state rates, it enjoys every right
to which il Is entitled.
THE test cannot be-" declare the
governors, whether the effect of fix
ing the local rates may or Will be
to lead the railroads To lower their
interstate rates but whether the
local rates are fair and rea-
sonable. for If they are so and
the sum OF them is so much lower
than the Interstate rates as to lead
shippers TO take the trouble and risk
of rebilling or reshippins at State
lines. this is perfectly lawful condi-
tion the advantage of which the public
is entitled to enjoy. And as the cost
and convenience of carriage in that
way can be no less, but. as is well
known, would rather he greater. the
advantage would remain with the
through rate even II it were reduced so
as to equal the sum of the local rates.
The railroads cannot invoke the com
merce clause of the federal constitu-
ton To shield themselves against fair
and reasonable rates fixed by a state
for it's own internal business. The
effect of these on interstate rates Is
not only incidental and indirect but
also legitimate under the dual form
of government through which we enjoy
happiness and prosperity beyond COM
pare
eff the local rates as reduced by
Minnesota are still fair and the reduc
tlon leads the railroads to lower
through rates correspondingly, then in-
terstate commerce will have been re-
lleved Of a burden instead of having
one imposed on a.; aud this would he
accomplished not directly by the states
Regulation of its own commerce but in