The daily banner. (Cambridge, Md.) 1897-2008, 1913-04-26
GIVES U.S.PoWER
OVERSTATERATES
The Commerce Court Upholds
Powers Of Congress,
LIKE CASE IN HIGH COURT
Declares the Government Can Remove
Determinations Induced by State
Commissions Action.

Declares the Government Can Remove
Determinations Induced by State
Commissions Action.
Washington, April 26. The com
merce cour, upheld the interstate com
merce ,c..IuissIoa' orders N the
Shreveport Texas rate cases and -
many respects sustained principles
which the railroads are asking the su'
preme court to adopt in the forty-hTs
state rate cases now awaiting dects
ion.
The commerce court entirely upheld
the powers of congress and the inter
state commerce commission to remove
determinations caused by state rail
road commission enforcing intrastate
rates lower than state rates which
have been held to be reasonable.
Because of the similarity OF the
Shreveport case to the state rate cases
Attorney General McReynolds last
Monday filed a brief In Intervention
in the state rate case with the su.
preme court, as friend OF the
court"
Attorneys for the state of Minnesota
filed their reply. but expressed the
opinion that the Shreveport decision
would not affect their cases. because
Minnesota, as distinguished from
Texas. is seeking to sustain the right
of a state to establish a system Of
intrastate rates, presumably reason
able in themselves and having no ref
erence to interstate commerce.
In view of the low Texas state rates.
Shreveport, La, Immediately over the
Texas line, found it impossible to
compete with Dallas, Texas. for exam
pie. because the interstate rates from
Shreveport were mach higher than
those from Dallas to the same destiAS
tons In Texas.
The commission found that the as
elimination against Shreveport by the
Texas state-made rates was obvfoua
and conceded and that the Interstate
rates were reasonable.
Evidence was brought to show that
the lower Texas rates we're imposed
for the declared purpose and in pur
suance of a settled policy OF the Texas
railroad commission to give Texas job
bers preferential advantage over their
competitors in Louisiana and other
states
The commission. therefore. ordered
the railroads to remove the discrimina
ton To do so. 1t would have been
necessary for the railroads to advance
their Texas state rates In oppositioR
to the state commissions orders. The
railroads applied to the commerce
court to set aside the interstate .cem
merce commissions order.
1t was urged that the federal com
mission had no control of state-made
rates. This contention the commerce
court rejected by holding that the &C
ton of the Texas state commission
resulted In q violation Of the undue
preference" section of the federal law.
The court distinctly upheld the para
mount authority Of the interstate
commerce commission. It says In Of
feet that the carriers were not under
compuls.on to obey the order Of the
Texas commission because that, by the
interstate commerce commission or
der. had been superseded by direction
of a superior authority" and that
therefore they had ceased to be
found by any inconsistent laws or ed.
minlstl alive policy"
The effect of the courts holding k
that no state may, by its state rates,
impede the flow Of commerce from
other states or protect Its own ship
pers against outside competition.