The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-06-13
DECISION OF COURT
OF GREAT IMPORT
TO STATES RIGHTS
RENDERED BIZ THE v. S. SU-
PREME COURT IN THE MIN
NESofA RATE CASE.
PRINCIPLES ARE LAID DOWN
Opinion viii Have Large Bearing
on Other State Cases-Has Right
to Make Rates Until Congress
Shall Do So.


power of the states to fix reasonable
intrastate rates On intrastate rail-
roads until such time as congress
shall choose to regulate rates was up
held today by the supreme court OF
the United States in the Minnesota
freight and passenger rate cases.
AT the sane time the court laid
down far-rcaching principles govern
ing the valuation of railroad proper
ty for rate making purposes and &C
cording to these held that the state
of Minnesota would confsCate the
property OF the Minneapolis & ST..
Louis Railroad Company by it's max
imum freight and two cent passen.
ger fare law. L: enJoined the state
from enforcing these laws as to this
road for the present. In the cases OF
the Northern Pacific and Great North
ern, however, the court held that
these ROADS had failed to show that
the rates were unreasonable or
confiscatory aud consequently reyers-
ed the United States district court
for Minnesota, which had enjoined
their enforcement as both confisca-
tory and burden on Interstate COM
merce.
The criticism Of the apportionment
of value between interstate and intra.
state business on gross revenue
basis and Ike apportionment of ex-
penses by regarding intrastate freight
business as two and a half time as
expensive as Interstate business was
regarded here as favorable to the
state of Missouri in it's fight to up
hold the validity of the maximum
freight and two cent passenger law
enacted by t. Similar confidence
was inspired in advocates of the Ar
kansas state late regulation, but all
recognized t;iat the statement of the
court that eeach case of alleged con-
fiscation musi rest on it's own bot
tom, might mean the setting aside of
the Missouri and Arkansas laws
The states of Oregon and Kentucky
were regarded as almost certain to
win their rate cases involving the
validity of state freight rates, be-
cause in each instance, practically
the only objection 70 the laws was
their reputed Interference with inter
state commerce For like reason
many believe that the West Virginia
two cent passenger law would be up
held.
The decision was announced by
Justice Hughes and constituted some
thirty-five thousand words. The
court was unanimous with the posi-
BILE exception of Justice McKerna,
who merely "concurred in the re-
suits"
Among the laws which the states
may pass Indirectly affecting inter-
state commerce were mentioned |
state inspection laws, state employ
er's liability laws and quarantine reg
ulations. Justice Hughes said that |
state rate making was to be classi- |
fled with these.
Summarizing the decision Attorney |
General McReynolds tonight said:
THE couc. holds that congress, in |
the interstate commerce act, has not |
deprived the states of the right Of |
fixing maximum insterstate rates i
They still have that power. In con-
testing rate fixed by the state on
the ground that the rate is con6sca,
tory, the decision says that the bur-
den of proof Of confiscaticn falls up
on the railroads. The court found
that the Minneapolis & ST. Louis
Railroad had established that the
rates affecting them were confiscato-
ry, but that the Northern Pacific and !,
Great Northern had failed in their
proof"