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

wv ~ fNNAttOl ll1G
J
BY 8. c. FORBES.
Stripped Of all legal terms, the
10000 words decision of the Supreme
Court in the famous Minnesota rate
casss means this, as near as / can
interpret it:
Neither the State nor the railroads
have won a sweeping victory. al
though the State has been upheld in
certain important respects.
The States can fix rates within their
borders even although such rates d.
rectIy affect interstate commerce,
and these rates stand until the rail-
roads prove them cOnfiseatory.
The Constitution, however, gives
Congress the power to secure free
dom of Interstate commercial inte,-
course from State control and to pro-
vide regulation of that intercourse as
the national interest may demand"
Congress is the judge of the neces-
sity of Federal action in matters az
feeting interstate commerce. but
until Congress acts, the States may
act"
Railroads have under all cireum-
stances "the right to receive Just COM
pensation for the services given to the
public"
In the cases under review the Su-
preme Court holds that the Northern
Diff - Hra-4 Anr4Ler, r,iIro,Is
have not proved that the rates i'm
posed by Minnesota are confiscatory
and therefore the rates are upheld
this being a reversal Of the lower
courts ruling.
The Minneapolis and St. Louis
Railway wins its contention that the
rates imposed upon It by the State
are conFiscatory and, consequently
cannot be enforced.
When State rates are condemned as
confiseatory, 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 confiseatory. It
would seem that this leaves the States
abundant opportunity TO keep On
harassina the railroads by imposing
new rate schedules, 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-after annoying, eNpen
sive litigation and perhaps disorgani-
zation Of business-the railroads can
count upon receiving equitable treat
rent from the Supreme Court,
From, a businessmen political
point of view i is a thousand p'ties
that measures could not be devised to
relieve the railroads from interior
epce BY States with rates which at
feet interstate movement Of traffic.
As matters now stand each State
can prescribe any sort OF rates It
wishes. and It devolves upon the rail-
roads to 90 to the trouble and eH-
pense Of proving these rates con
fiscatory before they are granted re-
lief.
The Interstate Commerce Com
mission regulates our railroads very
riuidIy. Would It not be more busi-
ness-like to place the railroads asI'
completely as possible under this
one authority and free them from toe
caprice Of every State in the Union ?
REMEMBER, EVERY TIME, Al
RAILROAD is PUT TO THE 'EX-
PENsE OF ENTERING A COURT,
THE BILL HAS TO BE Footed
BY YOU AND ME-, BY THE. PUB
Lie.
The railroads are not isolated en-
titles. things apart from Ourselves,
They are part and parcel 'of the ma
tion's necessary machinery, and the
public must pay every dollar con
sun'ed in running the machine. It
may be natural for each State to seek
TO compel local railroads to carry its
freight and its passengers at less than
cost. but the people, Of other States
must make up the difference unless
bankruptcy is to- be precipltated.
No railroad can spend 1o5 cents for
Transporting freight for which it re
eeives only 100, cents.
States have sovereign powers" Of
course, and are rightly jealous Of
them. But no State can afford TO
throw its railroads into bankruptcy
Railroads must be run, and run on
a paying basis # the alternative Of
public ownership is to be avoided.
Would IL not BE- possible 10 derisc
some tricHdiV arrangement 1rborcjH.