The daily banner. (Cambridge, Md.) 1897-2008, 1913-06-17
RATE DECISIONS
ARE ANNOUNCED
Two Cent Law Held Invalid to
Some Roads.
SUSTAINED As TO OTHERS
Railroads Defeated In Appeals From
Laws In Missouri, West Virginia,
Oregon and Arkansas.

Washington, June 17.-Validity OF
two-cent passenger laws and maximum
freight rates in Missouri, West Vir
ginia and Arkansas were upheld by the
supreme court in another series of de
cisions in the noted state rate cases.
No decision was announced in the
Kentucky case. In the Missouri case
the great majority OF rates contested
by the railroads as confscatory were
held valid. State freight rates estab
ished in Oregon also were approved.
Ali contentious that the state laws
attacked interfered with interstate
commerce were swept aside, following
the precedent in the Minnesota rata
decision a week ago.
In the majority of the Missouri cases
and in the Arkansas case, the court
held that railroads had presented toe
general data on which to base claim
that their property was being taker
without compensation through the op
Grafton of the new rates.
The Missouri cases were the first
taken up, and the court held that the
rates prescribed under the state law
to be confiscatory on the st. Louis &
Hannibal, Kansas City, Clinton &
Springfield, and Chicago Great West
Springfield, and Chicago Great West
ern railroads, but valid as to the st
Louis Southwestern, the Missouri Pa
cific. the st. Louis, Iron Mountain &
Eouthern, the Wabash, the Chicago
Milwaukee & ST. Paul and the Chicago
& Alton.
The court also sustained the rates
of the Missouri law as to the Chicago
Burlington & Quincy, the Atchison
Topeka & Santa Fe, the Kansas City
Southern. the Missouri, Kansas &
Texas, the Chicago, Rock Island and
Pacific (including the st. Louis, Kan
sas City and Colorado), and the St
Louis & San Francisco.
The decision holding the rates con
fscatory and therefore unconstitu
tional as to the Chicago Great West
ern was made to apply, by virtue Of a
stipulation between the state and the
railroads, to the Quincy, Omaha &
Kansas City railroad and the ST. 10
seph & Grand Island railway.
The constitutionality of a state two
cent pas ,enger law or maximum
freight law was determined in the
Minnesota case, where the court he'd
that state had a right to pass such
laws, provided the rates imposed I'm.
der them were not confscatory. This
same application was made to the Mis-.
souri, case. The decision is partly a
victory for Missouri, as the lower
court had held the rates confscatory
on all the roads.
Taking up the Burlington case first,
Justice Hughes pointed out that ths
assessment value had been multiplied
by three to reach value for rates. He
declared that if that basis were ex.
tended to the whole Burlington system
the value upon which rates are to be
based would exceed by $115,000,000 the
capitalization of the system.
He declared that the revenue basis.
adopted by the lower court to appor.
ton the cost of interstate and intra.
state business was too general, when
actual tests could be made.
In the St. Louis and Hannibal, JUS.
tice Hughes said neither the experts
for the railroads or for the state could
find a basis on which the rates would
be remunerative.
In the West Virginia case the state
two-cent passenger law was, upheld
as valid b! the supreme court affirm.
ing the decision of the supreme court
of appeals of West Virginia.
Justice Hughes said the question OF
interference with interstate commerce
was decided in favor of the state for
the reasons assigned in the Minnesota
rate decision. No question of confisca.
ton was presented in the West Vir,
ginia case.
The supreme court also upheld as
valid the rates imposed by the Oregon
railroad commission out of Portland,
thus affirming the federal court of that
state.
The Arkansas maximum freight rate
law and the two-cent passenger fare
law also were upheld as valid.