Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-04-01
HEARING TO COME UP TODAY
Representatives of Many States Are
in Washington.
VITAL TO STATE nrs,,S \
Rulings u;s w'' yvp.nd on
~ Decision.
MAXIMUM RATE LAWS IN POINT
Two-Cent Passenger Laws Included
in Acts that VIII Come In Scope
of Tribunals Action when
Finally Given.

WASHINGTON. March 31.-Their bulk
and Importance rank the group Of state
rate cases to be taken up for cOnsidera-
ton tomorrow by the supreme court as
the biggest cases to come before that
tribunal this term.
State rate laws and orders in Missouri.
Kentucky. West Virginia, oregon. Mime
sofa. Arkansas and Ohio will stand or fall
by the decision OF the court. State rate
orders in practically every state Of the
union will be swept out of existence IL the
court finds that the orders and laws now
in question burden interstate commerce.
The record in the Missouri cases alone
covers ten thousand pages. This repre-
sents more words than have been uttered
in both the house and senate during the
present session of congress. The Jutices
are each imposed 10 digest this record
and the thousan pages Of briefs besides.
The Minnesota cases are almost as
bulky and have been referred TO as the
most comprehensive. The validity of prac-
tically all maximum freight rates in the
state as well as the two-cent passenger
law is involved. Two big questions are
before the court.
The first, likewise. arising in cases
from the other six states, is whether the
reduction Of state rates would require the
railroads to reduce similar interstate rates
and If such reduction Of state rates would
be a burden on interstate commerce. The
JsFMinnesota federal court held that II
would be such a burden, The other
question is whether the rates eonfiscate
the property of the railroads.
In answering the later question in the
affirmative. the lower court adopted the
reproduction cost new Of the railroads
as showing their fair value. The state
claims that was a wrong basis. The state
also objects TO the use Of the gross earn
ings a the bais for dividing the value
between intertate and intrastate business
between passenger and freight rates
In the Missouri cases maximum freight
and the 2,cent passenger laws are In
volved. The federal court in Missouri
held the rates eonflscatory, but not a
burden on Interstate commerce. The con-
an agreement TO regard three times the
taxation valuation as the fair value.
The Kentucky case involves the con-
stltutionality OF the State Railroad com
mission act and the validity OF reduced
rates on distilleries' supplies from ekn-
lucky points to Ohio inland cities. The
railroads lost on both points In the lower
federal courts.
The West Virginia controversy relates
merely TO the validity Of the 2-cent pas
senger law. The supreme court of West
Virginia held II did not burden inter
state commerce and was not conflscatory.
Unsuccessful attacks were made on the
law because Of its penalty clause and
its applicability only on the steam rail-
roads. and not to electric railroads.
The Oregon cases are almost identical
with the Kentucky cases. The constitu-
tionality OF the State Railroad commits
sion 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 maximum
freight law and the 2-cent passenger Law
were found by the federal district court
TO be confiscatory. The valuation was
placed at twice the taxation valuation.
In the Ohio case the only question in
volved is the validity of a state rate
fixed by the Ohio Railroad commission
on steam coal from eastern Ohio TO Lake
Erie. Pittsburgh vein operators objected
10 the rates on the Wheeling G. Lake
Erie The railroad contention is that the
freight is interstate commerce, tran
shipped at Cleveland and Huron. O., for
lake cities In other states. The railroad
won below.