Warren sheaf., 1913-06-12
MINNESOTA WINS
RAIL Va y RATE CASE
THE UNITED STATES SUPREME COtRT MINNESOTA
CENT FARE1AND C0MMODI ~ RATE LAWS s. sSss s
I Greaf Victory f0r the People

q Great Victory
Washington, June The power
of states to fix reasonable interstate
rates on interstate railroads until
such time as congress shall choose
to regulate these rates was upheld
by the supreme court Of the United
States in the Minnesota freight and
passenger rate. cases. #ss
At the same time the court laid
down far-reaching principles gov
serning the valuation Of railroad
property for rate making purposes
and according to these held the
state Of Minnesota would contis-
cate the property Of the Minneapo-
lis & st. Louis Railroad company by
its maximum freight and two-cent
passenger fare law. It&enjoined the
state from enforcing these laws as
to these roads for the present.
In the cases Of the Northern Pa
cific and Great Northern, however,
| the court held these roads failed to
show the rates unreasonable or
confiscatory." and consequently re-
Versed the United States district
court for Minnesota, which had en-
Joined their endorsements as both
confiscatory and burden on inter
state commerce.
Decision Most Important.
The decision is regarded as one
Of the most important ever rendered
by the court, and it has been under
consideration for fourteen months.
The railroad commissions from
eight states and governors Of all
states filed briefs in support Of the
state in cases recognizing the prin-
lciples involved affected them all. #
The rateaGases fEoIl issollri Ar
kansas, Oregon, Kentucky and West
Virginia were not decided today but
the points announced in the Mime
sofa cases are regarded as govern
ing them generally. These will be
disposed Of later. 5#
A criticism Of apportionment 81
value between interstate and intra-
state business on a gross revenue
basis and apportionment Of ex-
| penses by regarding intrastate
freight business as two and hall
times as expensive as interstate
business is. regarded here as favor
able to the state of Missouri in its
fight to uphold the validity of t..
maximum freight and two cent pas
senger law enacted by it. B
Hughes Announces It.
The decision was announced by
!. Justice Hughes and consisted ol
some $4,000 words. The court was
unanimous with. the posslple excep-
!. tion Of Justice McKenna, who mere.
J. ly ''concurred in the results
l. Justice Hughes considered the at
/ tack upon the state rates in two
I parts, one that they placed an un-
4 lawful burden on interstate com.
merce, and the other they were SC
4 low as to confiscate the property 81
railroads.
! In considering the interstate com
merce phase it took it for granted
! the state had a power to regulate
rates between points within the
state of Minnesota on railroads no
crossing the state lines, and so fal
4 from the boundaries as not to com
pete with the cities Of other states
4 and otherwise affect interstate com
7 merce. 5s
Rates Not ConAscatory. q!
Concluding his opinion, Justice
Hughes said:
10 In the cases Of the Northern
. Pacific and Great Northern compan-
les, on the examination of estimates
lof value and methods of.appo ortion-
| ment, it is concluded that the proof
is insufficient to justify finding
that the rates were confiscatory
and the DEGREES are reversed with
instructions to dismiss the bill il
each case without prejudice.
May Reopen N. e st. L. Case 4
Tin the case Of the Minneapo-
lis & St. Louis Railroad company Ii
is found, in view Of the specia
/ facts appearing that the margin o1
error in the estimates and calcula-
tions was not sufficient to affect the
result.
The decree in that case, adjudg-
ing the rates to be confisca catory, il