The Oklahoma miner. [volume] (Krebs, Okla.) 1912-192?, 1913-06-26
STATE RATES WIN AGAIN
Justice Hughes Holds Maximums Are
Reasonable, Not Confiscatory
and Hence Can BE Enforced
by the States.

Washington.-Valid of two-cent
passenger laws and maximum freight
rates in Arkansas, Missouri and West
Virginia were upheld by the supreme
court in another series of decisions
In the noted state rate cases. No de.
cision was announced in the Ken
lucky case. In the Missouri case the
great majority of rates contested by
the railroads as confscatory were
held valid. State freight rates abol
ished in Oregon also were approved.
All claims that state laws attacked
interfered with interstate commerce
were swept aside, following the pre-.
cedent set in the Minnesota rate de-
cision a week ago.
In the majority of the Missouri
cases and in the Arkansas case the
court held the railroads had presented
too general data on which to base
claim that their property was being
taken without compensation through
the operation Of the new rates.
In the Missouri rate case the SUI
pTeme court held the rates confisa-
tory on the st. Louis and Hannibal,
Kansas City, Clinton and Springfield
and Chicago, Great Western railroads.
The decision was based upon the
two-cent passenger law and the max
imum freight law.
Justice Hughes, who announced the
decision, held that the point sought
to be made by the railroads to the
effect that the Missouri rates we're a
interference with interstate COM
merce must be decided against them
for the same reasons given by the
court in the Minnesota rate cases.
In each of these cases the DEGREES
of the lower court in favor Of the
railroads were reversed.
The decision is partial victory for
Missouri as the lower court had held
the rates confiscatory on all the roads.
In the cases in which the rates
were held confsatory the supreme
court modified the lower courts de-
cree so that the railroad commits
sioners and the attorney general Of
the state may apply to the court for
further action whenever it shall ap-
pear that by reason of change in
circumstances the rates fixed by the
states acts are sufficient to yield rea-
sonable compensation.
The West Virginia two-cent pas
senger law was upheld as valid by
the court, which affirmed the supreme
court Of appeals of West Virginia.
Jutsice Hughes said the question
of interference with interstate COM
merce was decided in favor of the
| state for the reasons assigned in the
Minnesota rate decision. No question
of confscation was presented in the
West Virginia case.
The Arkansas maximum freight
rate law and the twocent passenger
fare were also upheld as valid by the
supreme court.
The supreme court upheld as valid
rates imposed by the Oregon railroad
commission, thus affirming the fed
eral court of that state.
Because Of a provision IN the law
arbitrarily fixing $500 damages for
each violation, the court annulled as
unconstitutional the Kansas statute
OF 1905 which fixed maximum rates
for transporting oil by rail. The OBJ
iectionable clause was held to prevent
railroads from testing whether the
rates were confscatory.
The supreme court adjourned un
J til next October without announcing
| q decision in the inter-mountain rate
cases or passing upon the application
for a review of the Gompers Mitchell