Norwich bulletin., 1913-06-10

the states to fix reasonable intrastate rates on interstate railroads, un1l such time as congress shall choose to regulate these rates was upheld today by the supreme court of the United States in the Minnesota freight and passenger rate cases At the same time the court laid down far-reach- ing principles governing the valua- ton of railroad property for rate making purposes and, according to these, held that the state of Minne- sota would confiscate the property of he Minneapolis and $. Louis Railroad company by it's freight and two cent passenger fare laws.
 Case Under Consideration IA Months.
 It enjoined the state from enforcing these laws as to this road for the present In the eases of the Northern Pacific and Great Northern, however, the court held that these roads had failed to show that the rates were "un- feaSOna ble' or cOnhScaoTy and con- Eequentiy reversed the action of the United States district court for Min nesota which had enjoined their en- forcement as both confiscatory and a burden of interstate commerce.
 The decision, regarded as one of the most important ever announced by the court, had been under considera- ton for fourteen months. Railroad commissions from eight states and the governors of all the states filed briefs in support of the state in the cases, recognizing that the principles in yolved affected them all.
 Gases From Other States.
 Rate cases from Missouri, Arkansas. Oregon. Kentucky and West Virginia were not decided today but the points announced in the Minnesota cases are I regarded as governing them general 1N. These cases probably will be dis posed of tomorrow when the court will hD11 fEnT. o1C do on Monday, June 16, the final day of adjournment for the term.
 The criticism of the apportionment of value between interstate and intra- state business on a gross revenue basis and the appOrtionment of ex- penses by regarding intrastate freight business as two and @ half times as expensive as interstate business was regarded here as favorable to the state of Missouri in it's fight to uphold the validity of the maximum freight and two cent passenger law enacted by it. | Each Case to Rest On It's Own Bottom.
 Similar confidence was inspired in advocates of the Arkansas state rate regulations but all recognize that the statement of the court that each case of alleged confiscation must rest on it's own bottom might mean the setting aside of the Missouri and Ar kansas laws. The states of Oregon and Kentucky were regarded as al- most certain to win their rate cases involving the validity of state freight rates because in each instance practi- cally the only objection to the laws was their reputed interference with in terstate commerce. For a like req son many believed that the West Vir- ginia two-cent passenger law would be upheld.
 The decision was announced by Jus tice Hughes and consisted of some 35.- 900 words. The court was unanimous with the possible exception of Justice Mckenna, who merely 'concurred in the results
 Considered in Two Parts.
 Justice Hughes considered the at tack upon the state rates in two parts, the one that placed an unlawful bur- den on interstate commerce and the other that they were so low as to con- lscate the property of the railroads
 In closing the interstate commerce phase, he took it for granted that the state had the power to regulate rates between points within the state of Minnesota on railroads not crossing state lines and so far from the bound- aries as not to compete with the cities of other states or otherwise affect in terstate commerce
 He next reached the conclusion that intrastate rates whether on purely in- trastate railroads or interstate rail- road had not been regarded by the courts as being a direct regulation of Interstate commerce.
 An Intricate Question
 xAe most intricate argument in this phase of the controversy was made by the justice in considering whether state rates on interstate carriers could have such an indirect bearing on in terstate commerce as to exclude the states from imposing them He reach ed the conclusion that this was well known field in which the states could exercise their authority until congress had seen fit to regulate the field ex- clusively Finally he arrived at the conclusion that congress in all it's rate making Legislation had expressly provided that the regulations should not extend to transportation wholly within a. state.
 Justice Hughes reviewed decisions of the court from it's very founda- ton Our system of government is practical adjustment" said he, "by which the national authority as con- ferred by the constitution is maintain ed in it's full scope without un- 1 necessary loss of local efficiency Where the subject is peculiarly one of local concern and from it's nature be- longs to the class with which the i state appropriately deals in making reasonable provision for local needs, i 1t cannot be regarded as left to the unrestrained will of individuals be- i cause congress has not acted, although 1 It may have such relation to inter- state commerce as to be within the 1 reach of the federal powers.
 Congress May Intervene at Any Time. l
 In such case, congress must be the 1 judge of the necessity of federal ac- | tion. Its paramount authority always | enables it to intervene at It's discre- l ton. for the complete and effective | government of that which has been committed to it's care and for this | purpose and to this extent In response | to conviction of national need, to | dlsplace local laws by substituting 1 laws of it's own"