The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1913-06-10
Minnesota Wins the
Railroad Rate Case
United States Supreme Court Holds
That State Can Control Rates
Within It's Own Borders
MOST SCHEDULES HELD VALID
Only Minneapolis and st. Louis Tar
IFS as Fixed By The State Are
Confscatory

The state of Minnesota won a sub
stantial victory in the Supreme Court
today when in the Minnesota state
rate case Justice Hughes for the court
held that the rates Of the Minneapolis
& st. Louis railroad were confscatory
and unconstitutional but that the rates
of the Northern Pacific and Great
Northern were valid.
The decision was victory for the
state on the interstate commerce
phases Of the controversy and upon
the coniscatory features with the ex-
ception of the portion affecting the
Minneapolis & St. Louis =.
Justice Hughes Statement
Justice Hughes said:
"Fdrst-The Constitution gives Con-
gress an authority at all times ade-
quate to secure the freedom Of inter-
state commercial intercourse from
state control and to provide effective
regulation of that intercourse as the
national interest may demand.
Reserved to The State
"Second-The commerce that is con-
fined within one state and does not
affect other states, lis reserved to the
state. This reservation is only Of that
power which is consistent with the
grant of Congress. The authority of
Congress extends to every part of in
terstate commerce and to every in
strumentality or agency by which it
is carried on; and the full control by
Congress over the subjects committed
to its regulation is not to be denied or
thwarted by the commingling Of in
terstate and interstate operations. J.
Interstate Commerce Excluded
"Third-Even without action by
Congress the commerce clause of the
Constitution necessarily excludes
states from direct control Of subjects
embraced within the clauses which are
of such nature that, if regulated at all,
their regulation should be prescribed
by a single authority. There is thus
secured the essential immunity of in
terstate intercourse from the imposi-
ton by the state Of direct burdens and
restraints.
@F0r Local protacfinno
"Fourth-But there remains to the
states the exercise of the power ap-
propriate to their territorial jurisdic-
ton in making suitable provision for
local needs. The state provide local
improvements, create and regulate To-
cal facilities and adopt protective
measures of reasonable character in
the interest of the health, safety, NOR
ais and welfare of it's people, although
interstate commerce may incidentally
or indirectly be involved.
Congress To Be Judge
where matters falling within the
state power as above described are al
SO by reason of their relation to inter-
state commerce within the reach of
the Federal power, Congress must be
the judge Of the necessity of Federal
action and until Congress acts the
states may act. The paramount au-
thority of Congress enables it to in
tervene at its discretion for the COM
plete and effective government of that
which has been committed to its care
and for this purpose and to this extent
in response to a conviction of national
need to displace local laws by substi-
tuting laws Of its own.
Authority State Wide
"Fifth-State regulation of railroad
rates begin with railroad transporta-
ton. The authority of the state to
prescribe what shall be reasonable
charges for interstate transportation
is statewide, unless it is limited by
the exertion of the constitutional pow
er Of Congress with respect to inter-
state commerce and its instruments.
As power appropriate to the terri
torial jurisdiction Of the state, it is
not confined to part of the state, but
extends throughout the state-to it's
cities adjacent to its boundaries as
well as 70 those in the interior Of the
state. II this authority Of the state be
restricted it must be by virtue Of the
actual exercise. of Federal control and
not by reason merely Of q dormant
Federal power, that is, one which has
not been exerted.