Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-25
STATES MAY NOT
. CHECK TRADE FLOW
Power of Congress and inter-
state Board Upheld in Sweep
ing, Rate Decision.

WASHINGTON, April 25.-The
Commerce Court Commissions orders
in the Shreveport Texas rate cases
and in many respects sustained prin-
ciples which the railroads are asking
the Supreme Court to adopt in the
forty-five State rate cases now await
ing decision. The Commerce Court
entirely upheld the powers of Con-
gress and the Interstate Commerce
Commission to remove discrimina-
tions caused by State railroad COM
mission enforcing intrastate rates
lower than interstate rates, which
have been held to be reasonable.
Because Of the similarity of the
Shreveport case to the. State rate
cases, Attorney General McReynolds
last Monday filed a brief in inter
vention in the the State rate cases
with the Supreme Court, as a friend
of the court"
Minnesota Replies.
Attorneys for the State of Mime
sofa today filed their reply, but ~eX-
pressed the opinion that the Shreve-
port decision would not affect their
case, because the State of Minnesota
as distinguished from Texas is seek
ing to sustain the right of State to
establish system of intrastate rates.
presumably reasonable in themselves
and having no reference to interstate
commerce.
The decision is broad affirmation
of the power of Congress and of the
authority Of the commission to re-
move discrimination induced by rates
made by State railroad commission,
which are lower than interstate rates
held to be reasonable.
In view of low Texas State rates,
Shreveport, La, Immediately over the
Texas line, found it impossible to
compete with Dallas, Tex, for ex-
ample, because the State rates from
Shreveport were much higher thar
those from Dallas to the same des.
tinations in Texas.
The commission found that the dis
elimination against Shreveport by
the Texas state-made rates was OBJ
vious, and conceded that the State
rates were reasonable Evidence was
brought to show that the lower
Texas rates were imposed for the de.
clared purpose and in pursuance of a
settled policy of the Texas Railroad
Commission to give Texas jobbers
preferential advantage over theii
competitors in Louisiana and Other
States.
The commission, therefore, orders
the railroads to remove the discrim.
nation. To do so it would have beer
necessary for the railroads to ad.
vance their Texas State rates in OPP.
position to the State commission's
orders. The railroads applied to tn,
Commerce Court to set aside the In
terstate Commerce Commissions or
der
Upheld Boards Power.
1t was urged that the Federal com
mission had no control of State-made
rates. This contention the Commerce
Court rejected by holding that the
action of the Texas State commission
resulted in a violation of the undue
preference" section OF the Fedora
law. The court distinctly upheld the
paramount authority of the Inter
state Commerce Commission. It sayl
| in effect that the carriers were mo-
under compulsion to obey the order o.
| the Texas commission, because that
by the Interstate Commerce Com.
mission order, had been superseded
by direction of superior authority
and that, therefore, they had ceased
to be bound by any inconsistent la,wi
or administrative policy"
The effect of the courts holding IL
that no State may, by it's State rates
impede the flow of commerce from
other States or protect its own ship
pers against outside competition.
Attorneys for the State of Mime
sofa, in the Minnesota rate cases
soon after the Commerce Courts de
cision was announced. filed with thu
kSupreme Court their reply to At
torney- General McReynclds's brief
sflied last Monday