Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-06-19
KENTUCKY CASE GOES OYER
Rate Legislation in Missouri,
Arkansas, West Virginia
and Oregon Is Found
Constitutional.

''' 49, W
cent passenger laws in Missouri. Arkansas
and West Virginia; maximum freight
rate laws in Missouri and Arkansas and
freight rates out of Portland in the oregon
cases. The only exception to the sweep
ing approval of State statutes was in
the case Of several weaker roads in Mis-
souri,.
The Kentucky case was not decided,
1t involves an attack upon State rates
from river points to inland distillery cities
and involves, in addition. an attack on
the constitutionality of the form of the
MCChord act enabling the State railroad
commission to fix reasonable rates or
interstate commerce. A decision In this
case may be forthcoming when the
court meets again in October.
Justice Hughes announced the decision
on the rate cases to-day as he did In tbs
Minnesota cases a week ago. Wherever
the point was raised that the state laws
interfcred with interstate the
justice referred to his Minnesota rate de-
clsion. He disappointed any who believ-
ed the court might, in some way, modify
that decision,
80 '|iN' ~ ,-h'i@
I'VE need not review the arguments
addressed to conditions of ~transporta-
ton In Missouri and the relation of in
trastate to interstate rates" he said,
for while the case has it's special
facts by reason of location of the
State. and the use of the Mississippi
and Missouri rivers as basic points in
rate making. the controlling question
thus presented with reference to the
authority Of the state to prescribe
reasonable interstate rates throughout
its territory, unless limited by the
exercise on the part of Congress of
Its constitutional power over interstate
and it's instrument Is not to
be distinguished in any material re-
spect from that which was considered
and decided in the Minnesota rate
cases"
The Oregon and West Virginia cases
were decided in favor of the States
in n few words, the only point raised
by the railroads being that the laws
interfered with interstate commerce.
Justice Hughes went fully into an
examination Of claims In the Missouri
and Arkansas cases that the property
of the railroads devoted to intrastate
business would be confiscated As a re-
suit the State rates will become
operative on the Chicago. Burlington 6
Quincy, the Atchison, Topeka e. Santa
Fe., the Kansas City Southern. the
Missouri, Kansas x Texas. the Chicago.
Rock Island * Pacific. Gncluding the
81. Louis, Kansas City & Colorado), the
st. Louis Il san Francisco, the st.
Louis Southwestern, the Missouri Paci-
fic, the st. Louis, Iron Mountain &
southern, the Wabash, the Chicago,
Milwaukee x st. Paul and the Chicago
& Alton.
ROADS THAT ARE LET OFF.
For the present the rates will not be
come operative on the St. Louis &
Hannibal, the Kansas City. Clinton &
Springfield, the Chicago Great Western
the Quincy, Omaha & Kansas City an,
the st. Joseph & Grand Island.
The court refused to accept the valua
ton placed upon railroads in Missouri
by the States assessing board as a bas!
for tiXing the fair" value for figuring
whether the rates c~onfiscated property
Justice Hughes took the cases of tn
Burlington and SHOWED that by apply
ing the assessment value. (multiplie,
three times as was lone by the fedora
court in Missouri, to the whole system
a result would be obtained $1,000. q
in excess of the capitalization of the sys
tenn. Besides. he said, there was moth
ing to show upon what the assessor
fixed their valuation, nor was It demon
strated tina the assessors avoided tn
mistakes criticised in the Minnesota rat
decision.
"Manifestly a finding of confiscatiol
could not be based on such n valuation
in the absence of clear and convincini
proof that the value actually existed an,
that the defendants items of propert,
were estimated respectively by correc
methods and in accordance with prope
criteria Of value said Justice Hughes.
This proof was lacking, In the case o
the other roads, although the specia
considerations which have been men
toned with respect to the Burlingto,
property may not be applicable, still
we are left in uncertainty as TO the cor
rectness of specific valuations whic'
have been made"
GROSS REVENUE NO BASIS.
Apportionment OF property values be
tween interstate and interstate p%assenge
and freight traffic according to gross rev
enue, was disapproved for reasons stat
ed in the Minnesota rate cases Comm
to an apportionment Of expenses, Justic
Hughes said the plan adopted by tn
lower court of applying the revenue basi
was open to the same objection as 4
the Minnesota cases.
However, as to the st. Louis Il Hanui
bal and the Kansas City, clinton 4
Springfield, he said the experts of bot
the State and the railroads united Il
stating no basis could be found upol
which the proposed rates would yield a
adequate return. AS to the Chicago 4
Great Western. he said the errors of val
uation and apportionment We're not sutf
cient to warrant a reversal of the hndinI
OF the lower court that the rates wer
c~onhscatory. The rates as to the Quincy
Omaha & Kansas City, and the st. 10
seph & Grand Island were annulled be
cause of a stipulation between the Stat
and railroads that the finding as to IN
lChicago & Great Western should contrc
them.
At 2:15 o'clock the Supreme Court ad
iourned until next October without al
~lpouncinG a decision in the inteymouataiI