The citizen. (Frederick City, Md.) 1895-1923, 1913-05-02
STATE RATES
GET BIG JOLT
Cannot Interfere With Interstate
Commerce.
VICTORY FOR THE SHIPPERS.
Commerce Court UphoIds Orders Of
Interstate Commerce Commits
sion and Powers OF
Congress.

Washington The Commerce Court |
upheld the Interstate Commerce Com
MISSIONS orders in the Shreveport, |
Texas, rate cases. and in many re- I
spects sustained principles which the /
railroads are asking the Supreme |
Court to adopt in the 10 state rate |
Eases now awaiting decision The Su-
oreme Court entirely upheld the pow
9rs OF Congress and the Interstate |
Commerce Commission TO remove dis !
EXAMINATIONS caused by state rail
cad commission enforcing inurastate
a;es lower than interstate rates which
lave been held to be reasonable.
Because OF the similarity Of the
Shreveport case TO the state rate cases.
attorney General McReynolds filed a
lrief in intervention in the state rate
. asses with the Supreme Court as
5 friend OF the court Attorneys for
he state OF Minnesota filed their reply,
lut expressed the opinion that the
shreveport decision would not affect
heir case. because the state OF Mime
ota. as distinguished from Texas. is
eeking TO sustain the right of a state
o establish a system of interstate
ates. presumably reasonable in them
elves and having no reference 10 in
erstate commerce
The decision is a broad affirmation
Il the power of Congress and Of the
B uthority OF the commission TO remove
iscrimination induced by rates made
" state railroad commission, which
re lower than interstate rates held to
be reasonable.
In view OF low Texas state rates.
'hreveport. La Immediately over the
exas line. found il impossible TO com
etc with Dallas. Texas. for example.
ecause the interstate rates from
shreveport were much higher than
hose from Dallas 70 the same destina-
ions in Texas.
The commission found that the dis
s Elimination against Shreveport by the
'exas statemade rates was obvious
nd conceded that the interstate rates
s 1ere reasonable. Evidence was
8 rought to show that the lower Texas
ates were imposed for the declared
urpose and in pursuance Of a settled
. olicy OF the Texas Railroad Commits
ion 10 give Texas jobbers preferential
B dyantage over their competitors in
. louisiana and other states
The commission, therefore. orders
s ne railroads TO remove the discrimina.
ion. To do so. it would have been
ecessary for the railroads TO advance
s heir Texas state rates in opposition TO
he state commissions orders. The
s ailroads applied TO the Commerce
curt to set aside the Interstate Com
lerce Commissions order
1t was urged that the Federal Com
s Mission had no control OF state-made
s ates. This contention the Commerce
curt rejected by holding that the &C
on Of the Texas State Commission re-
ulted in a violation of the undue
reference" section of the federal law
he court distinctly upheld the para
lount authority of the Interstate Com
lerce Commission. II says. in effect.
lat the carriers were not under com
ulsion to obey the order OF the Texas
commission, because that. by the Inter
tate Commerce Commission order.
ad been superseded by direction of a
superior authority" and that there
ore. they had ceased to be bound by
ny inconsistent laws or administra.
We policy
The effect of the courts holding is
rat no state may. by its state rates.
npede the flow Of commerce from other
tates or protect its own shippers
gainst outside competition.