Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-06-10
States Have Power To Fix Pas
seOeef and Freight Tariffs
Arising and Ending Within
Their Borders,
REASONABLE LIMITS
MUST BE IMPOSED
Railroads Are Protected From
ConfscatIon OF Serious En-
banassment by Opinion of
IIieheSl Tribunal,

W1shtnetun. Junc Tho power of
The sntos to llX reasonable mirstate
rates on interstate railroads until
such time ns congress shall choose to
r0euNte these rates.. was upheld to-
day hy tho supreme court Of the Unit
ed states in the Minnesota freight and
passenger rate cases
AZ the same time. the court laid
down far-renchng principles govern
ing the valuation of railroad property
for rate making purposes, and accord
inn to these. held that the state Of
Minnesota would confiseatc the prop
erty of tho Minneapolis y S. Louis
Railroad co. hv ita maximum freight
and 2-ccnt passenger fare law. II en-
Joined the state from enforcing these
laws. ass "a this rnnd for tho present
I'M the ease of the Northern Pacific
and Great Northern. however the
/ court held that these roads had failed
20 show that the rates were "unrea-
sonahle' or "eonfiscatory. and con-
scuu,ntlV reversed the United states
district court for Minnesota, which
had cnioned their enforcement as
both confiscatory and burden on In
teisatc commerce
The decision regarded as one of
the most important ever announced
bv the court, had been under con
fideraHon for fourteen months Rail
road commissions from eight statos
aud the governors of all the states
hlcd briefs in support of the state n
the caaeH. recognizing that the pfinci-
nles involved affected them all.
Rate easca from Missouri. Arkan-
Ms. Oregon. Kentucky and West Nir-
einn were not decided today, but the
points announced In the Minnesota
eaaes are regarded as governing them
generally These eases probably VIII
be disposed of tomorrow. when the
court viii hold another session, as Il
viii ALSO do ON Monday, June II, the
final dnv Of adjournment for the
term
The criticism Of the apportionment
of value between Interstate and intra-
state businC SO on a gross revenue basis
and the apportionmcnt of expenses py
regarding nira-statc freight business
( aa two and half times as expensive
a. interstate business was regarded
hero ns favorable to the state of MIS-
soun in ih night to uphold the validity
/ of thc maximum freight ana 2-een'
passenger law enacted By H.
Tho states of pteEon uhd l>enthehN
were regarded aa almost certain 4"
win their rate cases, involving the
validity Of state freight ratcs because
In each instance practically The only
Oh lection to the laws WIS then W.
, pntcd interference with interstate
commcree
The decision was announced by
Justice Hughes. Justice Hughes con
sidercd the attack upon the state
rates in two parts. the one that they
placed nm unlawful burden on inter
state commerce, and the other thal
they were $40 low ns to c'nIiseh'e
property al the railroads.
IN CONSIDERING tnc interstate com
mprcc phasc. he took il for granted
that tho state had the power 10 rtpu-
mt. rates between points within the
etltr of Minnesota on railroads now
crossing state lines and So for tfol
boundaries and not TO compete with
fhr cities of other states or otherwise
affect interstate commerce
Ic next reached the conclusion that
mtra-state rates. whether on purely
ihtra-stute railroads Or Interstate
railroads. had not been regarded by
the courts as being direct ,, gulatloh
Of interstate commerce
rhc most intricate argument ~ TINS
phase Of thp controversy was made
by the Justice In considering whether
state rates ou Interstate carriers
could haNe such an Indirect bearing
ON Interstate commerce MS to exclude
thu states from imposing them. ne
reached tho conclusion that TINS was
"a well known field in which the states
could exercise their authority unlh
congress had seen ft 20 regulate the
neld exclusively Finally ne arrived
.af fhc conclusion that congress in an
ila rate-makng legislation had eN-
p1essly provided thai the regulation
should not cNtend 10 transportation
wholly within the state
Among tho HWs which the states
may pass indirectly affecting inter-
state commerce wore mentioned state
inspection Jaws state employers lia-
hHiN laws and quarantine regulations
lle sad that state rate-making was
t. ho classified with these.
IN has ncycr been doubted said
he. that the state could, il II saw IT.
build its own highways. canals and
rainoads II could build railroads
travorsine the entire state and thus
ION It's border cities and commercial
centcrs by new highways Of interior
COURSE TO boz always available upon
reasonable terms such provision Tor
local traffic might indeed alter rela-