The Birmingham age-herald., 1913-06-11
President Railroad Commits
sion Comments on Decision
in Minnesota Rate Case
DECISION EXPECTED
BY THE COMMISSION
Takes Issue With Conner, Who De-
clared Extra Session Should Be
Called to Settle Rate Ques-
tion in Alabama

Montgomery, June 10.--(Special "a
great victory for state rights" is the
effect of the ruling of the United States
supreme court in the Minnesota rate case.
according to Charles Henderson of Troy.
president of the Alabama railroad COM
mission, in a brief statement which Mr.
Henderson issued today upon the results
OF the rate decision.
President Henderson declares that the
decision was not unexpected by the rail-
road commission. maintaining that it was
in line with former rulings of the court
on the question of the right of state
to control and regulate intrastate busi-
ness
In its effect upon questions of rate regu-
lation in this state, Mr.. Henderson de-
clares that the decision of the supreme
court precludes the calling of extra ses-
sions of the legislature, intimating that
the control and regulation of intrastate
business lies within the power of the
railroad commission.
Takes Issue With Conner
In the statement Mr. Henderson takes
issue with former Governor B. B. Conner,
who declared several months ago that an
extra session of the legislature should
be called for the purpose of settling the
much mooted rate question. Mr.. Hen
derson believes that while the legisla-
ture has this prerogative the question of
rate regulation can better be adjusted
by the railroad commission.
,+o IN
this particular phase of the situation is
as follows:
"It," the supreme court decision, pre-
cludes the calling of extra sessions of the
legislature to make rates, as has been
done in the past, and as has been sug-
gested by some as to future remedy"
Mr.. Henderson further maintains that
the Minnesota case was a blanket rate
covering all roads, regardless of their
earnings and was therefore confiscatory
when applied to the Minneapolis and st.
Louis railroad.
Mr.. HendersOn's Statement
In commenting upon the supreme
courts decision, Mr.. Henderson said:
1T was expected by this commission,
being in line with former supreme court
decisions.
ut means, of course, that state has
the right to regulate intrastate traffic,
and sets at rest that mooted question.
Congress, under this decision. may
change the federal enactment governing
interstate traffic, SO as to control some
traffic state business, but l take it that
the representatives in congress of the
various states will never take this right
from their respective states.
'It is a great victory for states rights.
another thing that it demonstrates is,
as | have previously contended, that rates
made by railroad commission after
full hearing of testimony before the
rates are made, is the proper method of
rate making. You will observe that the
Minnesota case was a blanket rate COW
ering all roads, regardless of their earn
ings and was. therefore, only confiscatory
when applied to the Minneapolis and st.
Louis railroad.
1T means that rates should be made
based on their effect upon the various car
riers as they are individually effected,
and this can only be properly done by a
hearing before q commission.
ut precludes the calling of extra ses-
sions of the state legislature to make
rates, as has been done in the past, and
as has been suggested by some as a fu-
ture remedy
Governor O'Neal's Attitude
Governor ONeal declined today to make
any statement in regard to the supreme
courts decision. While he expressed HIM
self as being very much pleased, the
governor said he had no statement to
make on the question, indicating that the
present rate litigation in which the state
was engaged was in the hands of the
states attorneys, and that he had In
structed them more than 4 year ago to
appeal to the United States supreme
court from the decision of Judge Thomas
G. Jones.
The governor is hopeful, however, judg-
ing from some remarks he did make. that
the case may be settled without the ne
cessity of an appefAto the supreme court
should the three federal judges before
whom the recent hearing took place in
Atlanta decline to grant the Louisville
and Nashville Railroad company tenn
porary injunction against the establish
rpent of the 2lA cents passenger rate, as
ordered to be put into effect by the rail-
road commission, the state will have
gained a passenger rate victory without
the necessity of appealing to the supreme
court. The question of lower freight
rates, 1t is pointed out, could then be
adjusted in all probability, by the same
method as~ pursued In securing lower
The governor will probably not make
any definite statement regarding the SD
pr eme courts decision until after the
question that was heard In Atlanta has
been passed upon by Judges Pardee,
Shelby and Grubb. In his opinion, the
states case has been considerably
strengthened by the supreme courts rul-
ing, and he believes that the present
rate litigation will be determined with
out the necessity Of further legal efforts
on the part of the state
Frank N. Julian. associate member of
the railroad commission. in brief state
ment which he issued today, expressed
the same views as those given out by
Mr. Henderson. According to Mr.. Julian.
the supreme court has delegates to the
state the right to regulate intrastate
business and he agrees with President
Henderson that the railroad commits
sion is the proper source for the making
of rates and for the control of all intra-
state traffic.
TWO DEAD R0nTEC ~