New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-10
Favors Roads. Erb Believes.

/ the local market.
Favors Roads, Erb Believes.
/ Newman Erb president Of the Mime
/ apolis & 81 Louis Railroad which IS
one Of the railroads directly affected o.
/ the Minnesota rae decision, SAID 'ds'
night at his summer home AT Dea'
Roach that ne had not learned the
/ courts opinion in detail, but from what
he had CLEANED he thought II sho"e"
/ that the railroad companies We're en-
/ titled 10 a reasonable return upon their
value. and that neither the state nor inc
/ federal government could impose rates
which were conhscatory or which faiIeu
20 yield a reasonable return upon 'n7
value OF the property.
/ "I'pon that point ( do not know OF
ANYTHING that could give greater staoH-
! itv 10 railroad Investments IN this coun-
| Try" he continued Il also understand
/ tho court holds that the state. while en-
! ,iroly within its rights In establishing
! intrastate rates, must not impinge OF
affect rates which have been estabIlshfd
! hy tho Interstate Commerce Commiss'o"
as reasonable. think both these points
are complete victories for the railroads
As I understand IT. some forty differ
ont railroads entered into stipulation
that the decision in the Minneapolis *
| St Louis case should, on those geneE'l
lines amply 10 all Of them. The deci-
sion In n general way affects all the rail-
roads OF the country. Il depriNes th'
stete OF the power 10 fix rates that are
confscatory or fail 20 yield reasonable
| return n gives the state the rISh'
through its commission or Attorney
General. to apply 10 the lower courts
| from, time 20 time. when occasion arises
70 show that rates which they have es-
t.blisbed are reasonable. But until they
! do so the rates which were established
by the State Of Minnesota are enjoined.
Secs Turn in Lona Lane.
William J. Wollman OF j. s. Bache d
Co. OF No. ~ Broadway. said that he re-
earded tho decision as the first favorable
turn FOR the railroads IN legislation In
! long period.
THE whole country is suffering from
! destruction OF railroad credit" said M
| Wollman. and that fact has more to DO
with the present depression OF the sto'N
market than any other factor The IN
vestment market has been paralyzed by
constant attacks on the railroads
THE decision makes Congress hna'
resort I'm the matter OF railroad rates ana
that Is certainly favorable. inasmuch as
members Of Congress have begun 70 real
ize that something IS wrong. They are
| L
credit unfavorebly"
/ Several railroad men and bankers IN
the financial district declined 10 comment
upon the Supreme Courts decision ne
cause OF tho conflicting character OF the
reports sent out by the two Wall Street
news AGENCIES. Colonel W. T. ClouGh'
I ,,ce-prcsident Of the Northern Pacific,
and = r. Nichols. vice president Of the
! Great Northern, were dsincllned 10 tax
until they had read the full text Of The
opinion.
| Ever since all tho evidence involved In
the Minnesota rate litigation has been be-
fore the Supreme Court tho financial dis
trict has been awaiting It's decision. hop
ing with every session that the ruhhs
would be made public. It's Importance
! has been emphasized time ana again
principally from the point Of view that II
would settle once and for all the question
Of the so-caled doctrine Of state inter-
ference with interstate business
Each Monday the court has convened
/ the stock market has maintained wait
Ing attitude. aud yesterday was no eN-
ception 10 this rule. During the morning
session trading was fairly active. but ar
ter the noon hour dulness prevailed.