The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1913-06-12
STATE HAS RIGHT
TO FIX R. R. RATES
MINNESOTA WINS SUIT TO REGu
LATE TRAFFIC TARIFF.
UNANIMOUS DECISION is GlvlN
United States Supreme Court Hands
Down Decision in Important Le-
gal Struggle--The M. & st. l..
is Affected.


Washington. June l0.-The state Of
Minnesota won a substantial victory
In the Supreme court when in the Min.
nesota rate case Justice Hughes for the
court held that the rates of the Mime
| apolis & st. Louis railroad were con-
fiscatory and unconstitutional, but that
the rates Of the Northern Pacific and
Great Northern were valid. ,.
The decision was a victory for the
state on the interstate commerce
phases of the controversy and upon
the confiscatory features, with the ex-
ception Of the portion affecting the
Minneapolis & St Louis.
What the Cases Are.
The so-called state rate" cases have
presented to the Supreme court one of
the momentous problems of the dec
ade.
In general terms, this group of cases
called upon the court to decide two
questions. One was whether the states
! In passing maximum freight and two
cent passenger laws had unduly inter
fered with interstate commerce. The
other was whether those laws contis-
Gated the property of the railroads by
requiring them to transact business at
loss.
The group consisted of As cases. All
arose out of legislation enacted by
state legislature about 1907, or just
after the federal government had
passed the Hepburn rate law. The 40
cases concerned directly the laws in
six states-Missouri, Minnesota, Ken
lucky. Oregon, Arkansas and West Vir-
ginia. Similar litigation arose in Ala
bama, Iowa, Kansas, Nebraska, Okla
homa and South Dakota. In all, it was
said that rs suits in federal courts de-
pended upon the decision in the As
cases before the Supreme court.
How the Suits Started.
The Minnesota cases arose out Of
suits by stockholders of the Northern
Pacific, the Great Northern and the
Minneapolis & st. Louis railroads
against the companies to enjoin them
from obeying the, maximum freight and
two-cent passenger laws as unconsti
tutional, and against the state officials
to enjoin them from enforcing the
laws. Judge Sanborn Of the United
States circuit court for Minnesota held
the laws unconstitutional. of a confis-
catory nature. and that they burdened
| interstate commerce. The three suits
were appealed to the Supreme court
TnrnanfinA TrnSf NtrfnR
Convictions of five officials of the
American Naval Stores company at
Savannah-the so-called turpentine
trust-for criminal violation of the
Sherman law we're set aside by the Su-
preme court because of an erroneous
instruction of the trial judge. Justice
Pitney was the only dissenter from the
| opinion.
officials of the department of JUS
tice did not regard the decision as one
generally unfavorable to the criminal
section of the Sherman law. They
never considered that they had q
strong case.
Rules on Rebate Damage Suits.
Holding that one shipper cannot sue
for rebates as damages because com.
petitors received rebates, the Supreme
court reversed the decision of the
Pennsylvania courts awarding to the
International Coal Mining company OF
the Clearfeld region of Pennsylvania
Judgment of $4,000 against the Penn
sylvania railroad. Justice Pitney, dis
senting, declared the decision practi.
cally annulled the right Of the shippers
to sue for damages conferred by recent
legislation, leaving a right to sue only
in the almost negligible instances
where the goods Of a shipper came into
competition with competitors who re-
ceived rebates.
EIPS0N MAY nSE Emit