The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-06-19
OFFICIAL COUNTY PAPER
MEANS MUCH TO SOUTH DAKOTA

Mondays decision by the United
States supreme court, holding, in
particular, that the states have the
right to regulate interstate rates, is
of great Importance to South Dakota,
in more ways than one. 1t is the
courts view that, while 1t is true that
the regulation of rates within state
lborders may impose a burden upon
interstate commerce, the states can
not be. denied this regulatory power,
In the absence of legislation by con-
sgress specifically curtailing the right
3ofrthe states Ito control intrastate
rates that might affect interstate
rates. .,.,
& This decision has a direct bearing
upon action taken by the state legis-
/ iatureforathe reduction OF. passenger
and freight rates within this state.
Litigation Ans, the federal courts, has
held. up both a, 2-cent passenger fare
i act. and al2Ma cent passenger fare act
passed by the South Dakota legisla-
ture.5If the supreme court had held
that the states could not interfere
with Interstate rates by FIXING rates
to apply within their borders, this
legislation would unquestionably
5 have been set aside.'A special mas
I tel, snow Judge Gates of the state
supreme court, after an exhaustive
hearing, found for the, federal dis
trict court at Sioux Falls that a 2h
cent passenger fare in this state
would not be confiscatory, and there
fore should be sustained by the fed
4 eral acourt.aThe findings of, the mas
ter must. still be- reviewed by Judge
! Elliott Of Hhe federal court, but the
probabilities /. are that he will coin
eide with the decision OF the special
master. Even then the case will no
doubt be appealed, whatever the de-
5 cision of,,Judge Elliott. Therefore
considerable more delay will be in
evitable before the state can know
whether or not lit is Ito enjoy the
benefits of reduced. passenger fares.
- In the light of the decision of the
United States supreme court, the
Experimentation made by the state
OF. the rsilvoads property in the state,
will prove exceedingly useful. With
that for a basis, the, state railroad
commissionscan devisef new schedules
. Of freight and passenger rates from
time to- time. And, with the decision
.of the supreme court settling dis
mites asptor the anumberoof items in
railroad fundamentally the n
az TO the lworthnof' the right of way
and other real estate-the commits
sion can. proceed with reasonable as
ssurance Of support by the courts.
X. Butt the decision means a great
deal more than this. 1t has beenathe
practice on the part of the railroad
scpHpaniesas to cater to the 'long
haul."-T TO this end they have made
lowtdong distance rates,fwhich have
done much, to develop great trading
eenters.t The effect Of this has been to
discourage, local development. States
have found, 1t quite impossible to do
business with themselves. The SER
vice aand yates on traffic to the larg-
-ers ctties has served to concentrate
Industries of all sorts, at these points,
Of illustration, the live stock
iof the western s~tatesshas been ship
pedslto packing ecenters. there to be.
dressed and shipped, back to,the same
western states for consumption. SIM
ilarly, local Touring mills in South
Dakota have found it difficult to
competey with such FIGURING centers
~ Minneapolis. Thus 1t has developed
that grainais shipped to Minneapolis
to. be miued. and back again to, this
state to be eaten. There is no good
reason for this, since the local mills
can asaaily compete with the larger
mills II freight rates ere not SO ar
yangedeas TO put the larger mills on
practically the same basis with them.
Surely local Industries are entitled to