Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-12
HONORS EVEN IN
RATE RULING,
SAYS FORBES
Business Expert Favors Placing
Railroads Under One Supreme
Federal Authority,
BY 8, C. FORBES,


BY q, C. FORBES,
Stripped of all legal terms, tbs
So,ooo-woris' decision of the Supreme
Court In the famous Minnesota rate
cases means this, as near az can
interpret Il;
Neither the State nor the railroads
have won a sweeping victory, al.
though the State has been upheld in
certain important respects.
Tho States oan fix rates within their
borders even although such rates d.
reotly affect interstate oommercs,
and these rates stand until the rail-
roads prove them eonfisoatory.
The Constitution, however, gives
Congress the power to secure free
dom of Interstate commercial intsr-
course from State control and to pro-
vide regulation of that intercourse as
the national interest may demand"
Congress Is the judge Of the nsoss-
sity Of Federal action In matters at
Fecting interstate commerce, but
until Congress acts, the States may
act"
Railroads have under all oireum-
stances "the right to receive just COM
psnsation for the services given to the
public"
In tho cases under rsView the su
prone Court holds that the Northern
Pacific and Crest Northern railroads
have not proved that the rates i'm
posed by Minnesota arc eonfiscstory
and therefore the rates arc upheld
this being a reversal Of tho lower
courts ruling.
Tho Minneapolis and ST. Louis
Railway wins its contention that the
rates imposed upon il by tho State
are oonfisoatory and, consequently,
esnnot be enforced.
When State rates ara condemned as
eoufiSostory, the State authorities at
any future date, il circumstances
change, may take fresh action TO
provo that the State rates would af
ford reasonable compensation.
The railroads will no doubt COM
plain that, under the Supreme Courts
decision, the burden falls upon them
Of proving that State made rates are
unreasonable and eonfiseatory. Il
would seem that this leaves the States
abundant opportunity to keep on
harsssing the railroads by imposing
now rate sohedu les, each Of which is
LEGAL until the railroads can demon
strate in the courts that under such
rates the return upon capital would
not be reasonable.
Railroad batting will still be pos
sible, at least up to a certain point
In the end-aftsr annoying, eSpen
sive Iitiqation and perhaps disorgani-
ration OF business-the railroads can
count upon receiving equitable treat
mont from the Supreme Court.
From, a businessmen political
point Of view Il is a thousand pltles
that measures could not be devised to
relieve the railroads from interior
enes nv States with rates which at
feet interstate movement Of traffic.
As matters now stand each State
can prescribe any sort Of rates Il
wishes. and il devoIves upon the rail-
roads 10 90 to the trouble and eH'
pense Of proving these rates con-
fisoatory before they are granted re-
lief.
The Interstate Commerce Com
mission regulates our railroads very
riaidjy. Would il not be more bust
nsss-liks TO place the railroads az
oon,oIe+eIy as possible under this
ono authority and free them from the
caprice Of every State in the UnlOn7
REMEMBER. EVERY TIME A
RAILROAD is PUT TO THE EN-
PENsE OF ENTERING A COURT,
THE BILL HAS TO BE FOOTED
BY YOU AND NE, BY THE PUB
Lie.
The railroads are not isolated en-
titles, things apart from ourselves,
They are part and parcel Of the ma
lions necessary machinery. and the
bubble must pay every dollar con-
suued in running the nsehins. Il
NAV be natural for each State to seek
20 compel local railroads to carry its
frsiaht and it's passengers at less than
cost, but the people Of other States
must make up the difference unleas
bankruptcy is to be preoip'tateo.
No railroad can spend 1o5 cents for
TRANSPORTING freight for which It 70
ssives only 100 cents.
States have Sovereign powers OF
course. and are rightly jealous u
than But no State can afford TO
throw its railroads into bankruptcy.
Railroads must be run. and run on
: paying basis II the alternative OF
.Yblie ownership is to be avoided
Would il not be possible to derise
aoae friendly arrangement Whereby
-,.,.-.-J State rates affecting inter