The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1913-06-24
CALLS RATE CASE
RAILWAY VICTORY
Points Way For Final Federal
Authority, Says Taft.
RECOURSE TO CONGRESS.

Ex.prssidsnt Declares That National
Control Of Interstate Commerce 10
Also Upheld by Dseisien--AHords q
Remedy to Railroads That chafs
Under state supsrvision.
In brief memorandum, which brings
out into clear relief the salient points
In the Minnesota railroad rate decision.
ex-President William II. Taft recently
set forth his conclusions as to the prob
able effect the decision will have on
Interstate and intrastate commerce.
Mr.. Taft finds the decision In ultimate
effect to be victory for the railroads.
The court, while vindicating the posi-.
ton taken by the state In the present
case. nevertheless points the way for
the establishment Of superior federal
authority.
Mr.. Taft says that the only recourse
of interstate railroads that chafe under
state supervision Ii to congress, which
under this decision has the power to
make uniform laws to be effective,
even within the borders of the states
themselves.
In his comment on the decision
written for the New York Sun, Mr..
Taft wrote:
II hesitate to give the effect Of the
decision Of the supreme court In the
Minnesota rate case, because I have
not had an opportunity to read the
briefs Of counsel or the opinion Of Mr.
Justice Hughes In full. But think I
may safely say that one Of the main
issues was this: Whether or not with
the present federal instrumentallties
given by statute for regulating inter-
state commerce In the interstate COM
merce act and the Jurisdiction Of the
federal courts a remedy was afforded
to the railroads engaged in Interstate
commerce to prevent a state railroad
commission from enforcing an order In
respect to the railroads rates Of trans
portation business within the state
which prejudicially and unjustly and
Of necessity affected the rates legally
chargeable by It for Interstate busi-
ness.
Congress the Power.
'"rhe court holds that congress has
complete power to control interstate
commerce and to regulate It and that
this necessarily includes the power to
regulate such business within state
lines as affects indirectly interstate
business.
But the court holds that until con.
gress acts In respect to such business
within tho state 1t must be left to the
action Of the state. It further holds
that the present Interstate commerce
act does not cover or seek to regulate
such state business by its terms and
that In no other statute has congress
| declared Its intention to take over con.
troll Of this class OF state business.
"The railroads, therefore, that deem
themselves prejudicially affected by
the state regulation of state business
can find no remedy for their complaint
In the Interstate commerce net or In
any judicial proceeding based upon
that act. To this extent the Issue is
decided against the railroads.
"But the judgment OF the court Ia a
broad declaration in favor Of the pie
nary power of congress to vest the In.
terstate commerce commission and the
federal courts or some other appropri-
ate instrumentality, with the authority
to regulate and restrict such improper
or prejudicial interference with inter.
state commerce as the fixing by state
railroad commission Of merely state
rates may involve
Other Issues In Case.
"Of course there were In the case
other issues as to whether the rates
dxed by the state commission were
conhscatory of the railroad property,
but they did not rest on the Interstate
commerce clause Of the constitution,
but on the fourteenth amendment. as
to due process of law. and l do not
discuss them.
',The result of the main issue IL a
great victory In principle for the ma.
tonal contro, Of interstate commerce
and the possession by congress of the
right to use every appropriate means
to render that control effective and
uniform. even where the means may
include an investigation and restriction
under congressional authority Of state
fixed rates on state business.
"rhs only recourse Of the interstate
railroads which have complaints Of
this kind. therefore, In to congress for
new legislation adopting some proper
means to permit the railroads to se-
cure consideration Of their complaints
by federal authority and the restraint
OF such state action a. may interfere
with the uniform and proper regula.
tiOn Of their interstate commerce."