Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-12
.HONORS EVEN IN
RATE RULING.
SAYS FORBES
Business Expert FavOrs Placing
Railroads Under One Supreme
Federal Authority.
BY 3. c. FORBES.


interpret it;
Neither the State nor the railroads
have won a sweeping victory, al
though the State has been upheld in
certain important respects.
The States can fix rates within their
borders even although such rates d.
rectIy affect interstate commerce,
and these rates stand until the rail-
roads prove them confiscatory.
The Constitution, however, gives
Congress the power to secure free
dom OF Interstate commercial intst-
course from State control and to pro
vide regulation of that intercourse as
the national interest may demand"
Congress is the judge of the neces-
sity of Federal action in matters az
Fecting interstate commerce, but
until Congress acts, the States may
act"
Railroads have under all cireum-
stances "the right to receive Just COM
pensation for the services given to the
public
In the cases under review the Su-
preme Court holds that the Northern
Pacific and Great Northern railroads
have not proved that the rates i'm
posed by Minnesota are oonfisoatory
and therefore the rates are upheld
this being a reversal of the lower
courts ruling.
The Minneapolis and St. Louis
Railway wins its contention that the
rates imposed upon It by the State
are confiscatory and, consequently
cannot be enforced.
When State rates are condemned as
eonfiseatory, the State authorities at
any future date, if circumstances
change, may take fresh action to
prove that the State rates would at
ford reasonable compensation.
The railroads will no doubt COM
plain that, under the Supreme Courts
decision, the burden falls upon them
of proving that State made rates are
unreasonable and eonfiscatory. II
would seem that this leaves the States
abundant opportunity TO keep on
harassing the railroads by imposing
new rate schedules, each Of which is
LEGAL until the railroads can demon
..rate in the courts that under such
rates the return upon capital would
not be reasonable.
Railroad batting will still be pos
sible. at least up 20 a certain point.
In the end-after annoying, expen-
sive litigation and perhaps disorgan'-
zation Of business-the railroads can
count upon receiving equitable treat
nent from the Supreme Court.
From a businessmen political
point Of view /. is a thousand p'tIes
that measures could not be devised to
relieve the railroads from interior
ence BY States with rates which at
feet interstate movement Of traffic.
As matters now stand each State
can prescribe any sort Of rates u
wishes, and it devolves upon the rail-
roads TO go TO the trouble and eH-
pense Of proving these rates con-
fiscatory before they are granted re-
lief.
The Interstate Commerce Com
mission regulates our railroads very
rioidIy. Would It not be more bust
ness-like 10 place the railroads as
corpletely as possible under this
one authority and free them from the
caprice Of every State in the Union?
REMEMBER. EVERY TIME A
RAIL ROAD is PUT TO THE EE-
PENsE OF ENTERING A COURT
the BILL HAS TO BE FOOTED
BY YOU AND ME, BY THE PUB
Lie.
The railroads are not isolated en-
titles. thinas apart from ourselves.
They are part and parcel Of the ma
tiop's necessary machinery. and the
nubIie must pay every dollar con-
suroed in running the machine. II
may be natural for each State 70 seek
70 compel local railroads to carry its
freiaht and its passengers at less than
cost. but the people Of other States
must make up the difference unless
bankruptcy is to be precipltated
No railroad can spend 1o5 cents for
Transporting freight for which It re-
ceives only 100 cents.
States have "sovers On powers Of
course, and are rightly jealous Of
them. But no State can afford TO
throw its railroads into bankruptcy.
Railroads must be run, and run on
a paying basis IF the alternative Of
public ownership is to be avoided.
Would IL not be- possible 70 dorisc
some fricudIv arrangement lrhcr"bg
pra5olcd state rates. affecting inter
state toGir rogrd be- ad brfoc M"
Interstate commerce Commission o"d
an cfort n,ade Q. drfe1mui, irhciher
s.ok yeies ,-Dufd %, Ut,H o. be- app
held ox reasonable lHd H"H.r."f"'-
torp Jp the >uprrm. Cour''