Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-07-07
COMMISSION ORDERS ROADS re
GRANT Low RouhD.rRlP
FARE TO ANNUAL ExhiDlr.
CENT AND oNE.HALF PER MILE
ON ALL CLASS A LINES
Decision Affects Every Railroad Within
State Commission DECLARES New
Law Makes Order Mandatery-Raii.
roads Claim That Law 10 oiserimna.
tory Not Upheld.
Special to Times-Republican.


Des Moines, July Railroads doing
business in Iowa must file schedules
showing reduced round trip excursion
rates for the farmers Of Iowa to their
state fair by July L. Rates must be
good Aug. 20 to % inclusive. The rail-
road commission issued the order to-
day and turned down the claim Of the
carriers that the action contemplated
in the new legislative act would be
illegal because of the discrimination in
size Of fairs. The decision of the rail-
way commission is as follows:
THE petitioner in this case is the
Iowa department OF agriculture. II
asks this board to prescribe reduced
rates Of 3 cents per mile for the round
trip Cor a cent and half for each
mile traveled). to the Iowa state fair at
Des Moines on all railroads operating
in the state. as provided in chapter 16o
of the Thirty-fifth general assembly.
The said statute is mandatory; 1t re-
quires this board, upon application OF
an interested party, after full hearing,
to determine whether there were bona
fide paid admissions amount to 10000
in number at any annual fair during
the Immediately preceding year; and,
if 1t finds the same to be true, 1t be-
comes the duty of this board, under the
provisions Of said statute, to prescribe
the time and place at which the car
riers shall perform the service at the
aforesaid rates, and to designate what
reasonable notice of the said rates shall
be given to the public by the railway
companies.
"a full hearing was had before this
board on the third day OF July, 1913,
upon the application made by the de-
partment of agriculture; the said board
being represented by its president, vice
president and secretary, and by the
commerce counsel. A large number Of
railway companies were represented.
The petitioner offered testimony under
oath by all Of its officers present as to
the character Of their institution. and
the number Of bona fide paid admis--
sions at their last annual fair. The at
torneys for the carriers participated
in the cross examination Of these wit
nesses. The petitioned also offered its
original records for inspection OF the
board and Of the carriers. The railway
companies Of the state offered no EVIL
dence, and made no oral argument. The
| said railway companies did file several
typewriter brief, answer and pro-
tests against the proposed action by
the board. No one questioned the
validity Of the facts sought to be es-
tablished by the petitioner
Commissioners Powers Questioned.
THE railway companies, in their
written briefs, question the power Of
the state to order reduced rates of any
kind. relying chiefly on the decision of
the United States supreme court in
Lake Shore & NJ. s. Railway Company
VS. Smith That decision was rendered
by divided court. The case concerned
mileage books in the state Of Michi-
gan. The issues were quite different
from those presented in the present
proceeding. There was no substantial!
increase in the density of traffic or
other conditions to justify the reduced
rates. The man who had the larger
amount of cash on hand secured the
cheaper rate. There are some state
menss In the decision that tend to
support the contentious Of the car
r:ers; but the statements are dicta.
The court did not have before 1t the
arguments and facts that would be in
volved in the issues raised by the
Iowa statute under which this board
is now acting. 1t is a basic principle Of
transportation economics that the
greater the density Of traffic the lower
the costs to the carrier It is common
knowledge that the annual fairs at
various points in this state serve to
increase the passenger traffic on our
railroads enormously. The attendance
at these fairs varies from a few thou
sand at the local county fairs to over
a hundred and seventy-five thousand
at our state fair. The line should be
drawn some place where reduced
rates should be required, and where
they should not be required. The state
of Iowa, thru its state legislature. has
seen fit to draw that line at points
where fairs are held having annual at
tendance Of $4,000 or more. That Is
legislative act, pure and simple. Stat
utes have frequently been sustained
applicable to cities Of given popula
ton. There is a good and sufficient
reason for such classification, which
thereby prevents the same from be-
coming class legislation. The railway
COHlpdNlc0, Iue lhtCASSo
commission, and state commissions.
have frequently made special rates for
the transportation Of freight during
certain seasons of the year. The oc-
ca sion for the requirement is differ
ent; but there seems to be no good and
sufficient reason why 1t is not equally
Just to make such rates for the trans
portation, Of human beings, as we'll as
fruit and vegetables/
Unfair 70 lows.
"The railroads passing thru this
state run excursions from Iowa points.
to points outside Of the state in all
directions. 1t would seem but fair.
Just and constitutional exercise Of leg
islative discretion to order excursion
rates from points in Iowa to points in
side of the state. This Is especially
true II there can be a reasonable pre-
sumption that there will in fact be
q substantial :increase -sin the volume
of traffic while said rates. are in ef-
feet. x X there are twice s.. many people
using given train, the labor cost
and that II the. largest single item in
the railroad operating expense account
lis thereby reduced one-haif on that
train. Othericosts8suchs as the return
upon the Investment in and the MAINE
tenance Of depota. ri4ht-of-wax. eta.