Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-04-01
NOVEL PLEA MADE BEFORE
UNITED STATES COURT
Minnesota Case Holding State Rates ia
Violation Of Interstate Commerce
Taken as Text for Demand for Re.
lief - State and interstate Rate
Makers Clash.

road rates as interfering with inter-
state commerce. They respectfully
called upon the bench, having in "espe-
cial charge the Covenant Of the IN
ion'' to see that the boundaries OF the
states remain. 1t was the first time
in. the history of the nation that such
a protest had been made.
The protest took the nature OF
brief, filed as friends of the court by
a committee of governors, Judson Har
mon, Of Ohio; Herbert S. Hadley, OF
Missouri; and Charles H. Aldrich, OF
Nebraska This committee was Sc
lected at conference Of governors last
September The brief was submitted
in connection with the state rate
cases." set for oral argument today.
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
the Minnesota freight and passenger
rate cases held the rates invalid not
only as confiscatory but by reason OF
their effect ON interstate commerce,
that case was taken as the text for
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 Minnesota,
Missouri. Oregon, Kentucky, Ohio, Ar
MI To
before the court. The governors had
nothing to say about the confiscatory
nature Of the rates, but confined them
selves to the interstate phase OF the
question.
Minnesota Case Injustice.
The committee Of governors set forth
the claim that because Minnesota mad
required the railroads to reduce their
rates from such cities as st. Paul 10
Duluth, on the state boundary. the in
ter state business Of the railroads
from ST. Paul to Superior, Wis. just
across the line from Duluth, had been
affected Similar conditions. 1t was
stated, were to be found in Kansas
City, Kan, and Kansas City. Mo-. East
ST. Louis. Ill. and st. Louis. Mo,
Omaha Eeb. and Council Bluffs, Iowa;
Cincinnati. O.. and Covington and New
port, KY. The vice Of the Minnesota
division, it was urged, was not in an
incorrect statement of Minnesota geo.
graphy. but In the plain disregard OF
the provisions of the federal constitu-.
ton, which established the relation Of
the nation and the states by giving one
control over interstate matters and the
othe control over state affairs. 1t was
admitted that there might be some eff
feet on interstate commerce when
other control over State affairs. 1t was
asserted time and again in the brief
that If railroad enjoys a reasonable
return under state rates, it enjoys ey-
cry right to which 1t is entitled.
State and Interstate Rates.
The test can not be-" declare the
governors, whether the effect of fix
ing the local rates may or will be to
lead the railroads to lower their inter
state rates, but whether theElocal rates
are fair and reasonable, for II they are
so and the sum Of them il 80 much
lower than the interstate rates as to
lead shippers to take the trouble and
risk of rebilling Or reshipping at state
lines. this is a perfectly lawful condi-
ton 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 we'll
known. would rather be greater, the
advantage would remain with the thru
rate even II it were reduced so as to
equal the sum Of the local rates. The
railroads can not invoke the commerce
clause Of the federal constitution to
shield themselves against fair and req
soma BILE rates fixed by state for its
own internal business The effect OF
these on interstate rates is not only in
cidental and indirect but also leRiti-
mate Under the dual form Of govern
-ment thru which we enjoy happiness
and~prosperity beyond comparison.
Local Rates Lowers.
III the local rates as reduced by
Minnesota are still fair and the reduce
ton leads the railroads to lower thru
rates corespondingly. then interstate
commerce will have been relieved Of
burden instead Of having one imposed
on It: and this would be accomplished
not directly by the states regulation of
Its own commerce but indirectly by the
action OF the railroads themselves.
which would be only Just and right"
Its consequences. the governors de.
clared that II was plain tina! the newt
able effect Of the idea that business
necessitieA peculiar location Of lines
Of transportation and OF commercial
center can make an act Of q state reg
ulatinE its local rates regulation Of
interstate rates and therefore invalid,
would be the destruction Of tho state
control over its own affairs.
States Have Rights.
The right Of state regulation ex-
tends to every business conducted
within Its borders. tho such business
may also extend into interstate COM
merce. Any act regulating or AFFECT
ing an enterprise having an inter-
tate character necessarily affects the
conditions under which It completes
with like enterprises carried on In 9TH
er states. This will apply to telephones.
natural gas ana OIL. conn
pnaies mad mapy other enterprises.
nd thA f,aspa4A ~ n la~ va1,,vs ee,~