The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-10
BIG VICTORY. SAYS ERB.
tHiIs D~risiOm n Nindtca lon for
Al Roads IuVO1S ed.

Newman t.rb. railroad hnanCi.r. presi-
dent of the Ann .Arbor Railroad the
Pere Marquette and the Denver and
Salt Lake Railroad and of other rail-
roads said last evening he regarded the
decision in the Minnesota rate case IA
q comple," victory in every respect for
the railroads and that the decision will
do more than anything that has hap
pened in Years 10 restore the confidence
W the investing public in railroad Sc
curiti.s
The decision said Mr.. r.rb. IN the
general principles confirms the decree
Of the United States ,'ircut Court OF
Appeals IN every point and To that eX-
tent is II complete yictory FOR the rail-
roads in Minnesota and in other States
! Il ~ IA ylnd!cation not only for tho
Great Northern and tn" Mort hern Pa
c.hc railroads. hut for tn. Chicago
and Northwestern sud practically all
th- railroads thai iuinad IN the nght.
Nv stipulation il VAS agreed that the
decision should apply to all the rail-
| roads Interested in The case and i, has
PROV ed a compiet. Nindication for them
TWO main questions are involved.
flrs'. there was the right of the state
| VI VI 'i' lilleISldlt Olnffltltt = Oin-
mission to establish a rate that is CON
| l'scatorS or unreasonable. The United
States Supreme Court now holds that
! the State cannot make rate that is
| couiiscatory OF that fails 10 weld 81
| reasonable return on the value Of the
property. 10 that extent the opinion
| is general and applies To all the rail
| roads in the country and gives to rail
In snx,v ,,l,
! have not hitherto enjoved
The other point is to the effect that
States may. within their own limits. es-
| tablish local rates. but those rates must
not interfere with rates made by the
| Interstate. Commerce Commission and
by hat body declared tn be reasonable:
| hat where the Interstate Commerce
Commission or the Federal Government
has failed to act the action of the State
establishing rates within lis own juris-
diCtion il supreme.
| THAT is a general doctrine which ap.
plies 10 all railroads in the country
While the roads within the Eighth
judicial circuit have hy stipulation
agreed that the decision should he bind.
ing on all Of them there are TWO excep-
tlons. They are those of the Great Nor
| ''"' u "'' NV .>o' ~
proceeded Independently. Az to those
two companies. understand the de-
lcisiOn to be that they have not estab-
lished by evidence the fact that the pro-
posed rates are confiscatory or un-
! reasonably low and made up from the
testimony to show that the revenue de =
rived from the local business was un-
reasonably dow and made up from the
revenue derived from other, or inter-
state business, and the bills were dis
missed as to them with the right Ia
bring new actions to establish their
Contention.
THE decision will, in my opinion. 60
far to establish confidence the world
over in American railroad investments
and should he helpful in the present
condition in restoring confidence and
general prosperity"
Mr.. E,rb said he felt that other State
. Legislatures undoubtedly would be de-
TERED by the decision,
THE decision in the lower court was a
victory for the railroads" said Mr.. Erb
"but the fact that the decision was ap-
pealed by the State Of Minnesota caused
apprehension. leaving the question un-
settle in the minds of investors Now
iit IL settled for all times