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 8, C, FORBES.
Stripped of all legal terms, the
So,ooo-Words' decision of the Supreme
Court in the famous Minnesota rate
cases means this. as near as ! can
interpret Il:
Neither the State nor the railroads
have won a sweeping victory, al
though tho State has been upheld in
certain important respects.
The States can fix rates within their
borders even although such rates d.
rsetly affect interstate commerce,
and these rates stand until the rail-
roads prove them oOnfisestOry.
The Constitution, however, gives
Congress the power to secure free
dom Of Interstate commercial inter-
course from State control and TO pro-
vide regulation of thst intercourse as
the nstionai interest may demand"
Congress Is the judge Of the neees-
slty of Federal action In matters af-
Feoting Interstate commerce, but
until Congress acts, tho States may
act"
Railroads have under ell eiroum-
stances "the right to receive Just COM
psnsation for the services given to the
public"
In tho cases under review the Su
prone Court holds that the Northern
Pacific and Great Northern railroads
have not proved that the rates i'm
posed by Minnesota are oonfisostory
and therefore the rates are uphold
this being a reversal Of the lower
courts ruling
Tho Minneapolis and ST. Louis
Railway wins its contention that the
rates imposed upon Il by the State
ara oonfisostory and, consequently,
psnnot be enforced.
When State rates are condemned as
eonflsostory, the State authorities at
any future date, If circumstances
change, may take fresh action 70
prove that the State rates would at
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
harassIne the railroads by imposing
now rate schedules, each Of which is
IsaaI until the railroads can demon
strate in tho courts that under such
rates the return upon capital would
not be reasonable.
Railroad batting will still be pos
sibls, at least up to a certain point
In the end-after annoying, expen-
sive LITIGATION and perhaps disorsani-
zation of business-the railroads can
count upon receiving equitable treat
rnent from the Supreme Court.
From a businessmen political
point Of view i is thousand pities
that measures could not be devised to
relieve the railroads from interior
eree by States with rates which at
f.et interstate movement Of traffic.
As matters now stsnd each State
can prescribe any sort Of rates il
Wishes, and il dsvoIves upon the rail
roads 20 90 to the trouble and ss-
pense Of proving these rates con-
fiseatory before they are granted re-
lief.
The Interstate Commerce Com
mission regulates our railroads very
rlaidIy. Would it not oe more bust
rsss.Iiks to place the railroads az
completely as possible under this
ono authority and free them from the
CAPRICE Of every State In the Union7
REMEMBER, EVERY TIME A
RAILROAD is PUT TO THE EK-
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
TONS necessary machinery, and the
public must pay every dollar con-
sumed in running the machine. II
may be natural for each State to seek
to compel local railroads to carry its
freiaht and its passengers at less than
cost, but the people Of other States
must make up the difference unlsss
bankruptcy is TO be preeiptatss.
No railroad can spend 1o5 cents for
Transporting freight for which it 70.
esives only 100 cents.
States have Sovereign 2oweFs,' Of
course, and are rightly jealous Of
them. But no State can afford to
throw It's railroads into bankruptcy.
Railroads must be rum and run on
paying basis If the alternative Of
...blie ownership is to be avoided.
e.