The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1913-06-19
Missouri 2-Cent Rate and
Maximum Freight Rate
Upheld by Supreme Court

constitutional and reasonable and
Just. the contention of the railroads
that the rates were confiscatory be-
ing Overruled except as TO five minor
roads with light passenger traffic
and consequent high cost per pas
senger mile. The following is taken
from the St. Louis Republics Wash
ington special touching upon the
decision:
Washington, ID. c., June IL The
victory OF the States In their fight
to control railway passenger and
freight ratemaking within their bor-
ders became complete to-day when
the United States Supreme Court
handed down decisions uniformly
upholding the States In the Missouri,
Arkansas, Oregon and West Virginia
cases.
These decisions, given In opinions
of Justice Hughes and unanimously
sustained by the full court, hold
that the exercise OF the rate-making
power by the States named, save In
very minor instances, has not led to
the adoption of confiscatory rates.
The States, having won complete
victory in theory in the Minnesota
decision of last Monday, now win a
practically complete victory In prac-
tice.
The 2-cent fare and the limitations
imposed by the maximum freight
rate law, accordingly, will go into
effect throughout Missouri and Ar
kansas.
Upon ali questions involving the
constitutionality Of the 2.cent fare
and maximum freight rate enact
ments to-day's decisions follow the
Minnesota opinion.
The Missouri, Arkansas and Ore
gon State laws are declared valid in
very few words. Well nigh In their
entirety the new decisions turn upon
the issue of contiscation.
In Missouri the outcome is a I'M
nimous verdict, excepting only three
smaller roads, that the railroads
failed to produce evidence upon
which n finding OF confiscation can
rest.
Therefore, the following railroads
are required to abide by the State
laws as executed by the Railroad
and Warehouse Commissions:
Chicago, Burlington q Quincy,
Atchisou, Topeka d Santa Ee, Kan
sns City Southern, Missouri, Kan
sas q Texas, Chicago, Rock Island
Il Pacific, St. Louis, Kansas City d
Colorado, st. Louis d San Francis
co, st. Louis Southwestern Cotton
Belt), Missouri Pacific, St. Louis,
Iron Mountain d Southern, Chicago
d Alton, and the Chicago, Milwau-
kee & st. Paul.
Three exceptions, similar to the
exemption made for the Minneapolis
& st. Louis Railroad in the Mime
sofa case, are made. In application
to the st. Louis d Hannibal, the
Kansas City, Clinton d Springfield,
and the Chicago, Great Western,
the court holds the rates confisca-
tory.
Hence, as TO the former group OF
cases, the decree of the highest court
reverses the decision of United States
District Judge Smith Mcpherson,
which declared the State-made rates
confiscatory and remands the cases
with directions to dismiss the bills
respectively without prejudice.
AS to the latter three, the lower
courts decree Is modified and af-
firmed.
The modification leaves the Rail-
way and Warehouse Commission
(now superseded by the Public Utili-
ties Commission and the Attorney
General free to apply Eat any time
to the court, by bill or otherwise, rs
they may be advised, for a further
order or decree whenever 1t shall
appear that, by reason Of a change
In the circumstances, the rates fixed
by the States acts are sufficient to
yield to these companies reasonable
compensation for the services rem
dered.r
1t is fOreseen that II principal eff
feet of the Missouri decision will be
n strengthened demand for speedy
completion of the valuation of rail
road properties which has just be-
gun under the supervision OF the
Interstate Commerce Commission.
In substance Justice Hughes de.
scribes the valuation upon which
the claim of cOnfiscation rests in the
Missouri case as inadequate and UNI
reliable.
Room is left open for the infer
ence that, had the valuation been
more convincing the decision might
have been different.
The railroads are expected to co.