The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1914-06-11
S vERE BLOW GIVEN
TO RAILROAD BOARDS
Action Of Court Far Reaching
Puts Roads More Under Inter
state Commerce Commission.

| Washington, June 9.-The supreme
court today upheld the Interstate Com
alerce commission's orders in the
shreveport rate case, thus placing in
:~erstate railroads more under the com
mission and less under state commits
slons.
Justice Hughes announced the courts
decision. He spoke of the unrestricted
| power of the Interstate COM
| mission over interstate commerce., say
Ing the commission was expressly
created to prevent conflicting state
| legislation.
Justice Hughes pointed out that con-
gress and not the states had the power
to prevent the instruments Of inter-
state commerce from being used SO az
to injure interstate commerce.
The far reaching effect of the decls-
ion lies in tho fact that rates which the
Interstate Commerce commission ord
cred indirectly increased to remoVe dis
elimination, We're prescribed by the
Texas state railroad commission. I'm
der the federal commissions order, the
only way the railroads may escape con-
flict with the Texas commission is to
reduce the interstate rates from
Shreveport to Texas cities so as to put
the Louisiana city on a competitive
basis With Texas jobbing centers.
justice Hughes expressly recognized
the Importance of the case so stating
as he concluded his opinion.
but it is essential" he added, that
interstate com1nerc have one master
and not many"
History of Case.
The fight for better rates for Shreve-
port iobbers into Texas promised from
the start to establish a precedent gov
erning the future trade of cities along
state boundaries. SO important was
the matter deemed to be that the
Louisiana railroad commission itself
inflated the contest before the Inter
state commission in behalf
Of the jobbers along the Louisiana
Texas border.
The Louisiana commission complain
ed to the Interstate Commerce commits
sion in March, 1911, that the class
rates charged by the railroads for
transportation in a westerly direction
from Shreveport to points in Texas
were ~unlustly discriminatory in that
they were much greater than the rates
contemporaneously charged for the
transportation of like traffic from
Dallas and Houston, in Texas, to the
same points. They complained, in
substance, that a trade wall had been
erected aroun Texas INT hat outside
jobbers We're not permitted to enter in
to the enclosed field.
The Houston, Cast & West Teas
hallway company and the Texas &
racine Railway company did not deny
the discrimination, but answered that
the Shreveport rates were reasonable
IN themselves, and that the Texas rates
were no voluntary but We're prescribed
by the Texas railroad commission The
Interstate Commerce commission is
sued an order, holding that an unjust
discrimination existed and directed the
railways either to lower the interstate
rate from Shreveport to Texas points
or to increase the Texas rates from
Dallas and Houston to other Texas
points, SO as to remove this discrim-
nation. The railways vainly endeav-
ored to induce the commerce court to
enloln the enforcement of this order.
One of the principal points of con-
tentlon IN the case was whether this
was a voluntary or an Involuntary dis
elimination by the railways against
Shreveport. The railways contended
that it was involuntary because they
We're directed by the Texas railroad
commission to put into force the low
Texas rates. For each higher rate
charged. the railroads contended they
would be liable under Texas law for q
$4,000 penalty to the state, and from
SIZE to $500 to the shipper. In addi-
ton a fine OF $1,000 might be forth
coming for failing to obey an order of
the state railroad commission.
The government on tho other hand
contended that the Texas rates We're
voluntary because the railways had not
appealed to any court or commission to
the Texas rates set aside.