The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-06-21
RATE CASES SETTLED.
JUSTICE HUGHES REAFETRMS
MINNESOTA RULING.
ReiterateS Principle Contained i'm
That Decision and Settles Other
State Rate Cases i'm Accordance with
1t-NO Hint of Divergence From
Rates.


cases, the supreme court of the United
States today upheld state railroad rate
legislation in Missouri, Arkansas, Ore
gon and West Virginia. This legisla-
ton included cent passenger laws in
Missouri, Arkansas and West Virginia;
maximum freight rate laws in Mis-
souri, and Arkansas and freight rates
out Of Portland in the Oregon case
The only exception to the sweeping
approval of state statutes was in the
case of several weaker roads in Mis-
souri, The Kentcuky case was not de-
cided. 1t involves an attack upon
state rates from river points to ir
land distllery cities and involves, in
addition, an attack on the constitu-
tionality of the form Of the McChord
act, enabling the State railroad COM
mission to fix reasonable rates on in
trastate business. a decision in this
I case may be forthcoming when the
court meets again in Octo DER.
Justice Hughes announced the de-
cision in the rate cases today, as he
did in the Minnesota case a week ago.
whenever the point was raised that
the State laws interfered with inter.
state commerce the justice referred to
his Minnesota rate decision. He dis
appointed any who believed the court
might in some way modify that de-
cision.
We need not review the arguments
addressed to conditions of transporta-
ton in Missouri and the relation OF
intrastate to interstate rates" he said
for while the case has it's special
facts by reason Of location of the
state, and the use of the Mississippi
and Missouri rivers as basing points
in rate making, the controlling prin-
ciple with reference to the authority
of the State 80 prescribe reasonable in
trastate rates throughout its territory.
unless limited by the exercise on the
part of congress of it's constitutional
power over interstate commerce and
us instruments, is not to be distin-
Gulshed in any material respect from
"hat was considered and decided in
the Minnesota rate case"
The Oregon and West Virginia cases
were decided in favor of the States in
lew words the only point raised by
the railroads being that the laws in
ter1ered with interstate commerce.
Justice Hughes went fully into an
examination of claims in the Mis-
Sourl and Arkansas cases that the
property of the railroads devoted to
iH'rastate business would be confis-
Gated AS result the State rate
would become operative on the Chica =
60 Burlington and Quincy: the Atcbi-
son. Topeka g. Santa Fe: the Kan
saS City Southern; the Missouri. Kan
Sas & Texas; the Chicago. Rock Is
iand d Pacific including the ST
LOUIS Arkansas City q Colorado; :;
the st. Louis & San Francisco: the
Pacific; the st. Louis. Iron Mountain
Houthern: the Wabash; the Chi
ago Milwaukee & st. Paul. and the
Chicago & Alton.
r"r the present the rates will not
become operative on the 81. Louis &
hannibal; the Kansas City. Clinton g.
Springfield, the Chicago Great Wost-
crn; the Quincy, Omaha & Kansas
city and the st. Joseph & Grand ISL
and
Ine court refused to accept the val
uation placed upon railroads i'm Mis-
souri, by. the State as basis for
HNlng the " fair value for figuring
whether the rates cOnfiscated prop
erty. Justice Hughes took the case
OF the Burlington, and showing that
by applying the assessment value
multiplied three times as was done
by the Federal Court in Missouri 10
wv NIplc system a result would be
obtained $4,000, 600 in excess of the
capitalization of the system. Besides
he SAID, there was nothing to show
upon what the assessors fixed their
valuation. nor was it demonstrated
that the assessors avoided the mis-
takes criticised in the Minnesota rate
decision.
Apportionment of property values
between interstate and intrastate pas
Sengcr and freight traffic, according
to gross revenue. was disapprovcd for
reasons stated in the Minnesota rate
case"
Coming To an apportionmcnt of cX-
pCnScS, Justice Hughes said the plan
accepted 10y the lower court of an
plying thc revenue basis was opcn tn
the same objection as i'm the Mime
"ONeN No"S' p - aN ~ n&S a M xtaR