Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1914-06-23
ZONE" FREIGHT RATES
UPHELD By courts
INTERSTATE COM RCE
COMMISSION SUSTAINED
BY SUPREME COURT
Long and Short Haul Constitu
tional in the Inter Mountain
Rate Case

WASHINGTON. June 22.-Thc IN
called inter-mountain rate orders wc,t
sustained as valid today by the su-
preme court. which held at the same
time that the long and short haul
clause of the interstate commerce law
was constitutional Both were at
tackled by the transconunental rail-
roads.
The defunct commerce court, pass
ing over the constitutional question
had annulled the orders on the
ground that the commission had no
authority to issue blanket" or
zone orders and might act only on
the reasonabloness Of the specific
rates In overturning that conten-
tion today and holding that the CONF
mission did not have that power, the
supreme court decided a point lawyers
and close observers Of the Interstate
commerce commissions procedure say
is Of equal importance to the inter
mountain rate case itself-if not
greater
Opposition to the per cent in
crease I'm freight rates being asked by
the eastern railroads-and on which
the interstate commerce commission
is expected to announce its decision
any day-had been based principally
On the contention that the commission
did not have authority under the law
to grant such blanket" increase.
What the effect-if any-of the de-
Cision on the rate case may be only
can be the subject Of conjecture. Some
among the well informed in the com
missions procedure, however. say the
decision in the disposition of the rail-
roads application has been delayed,
awaiting the supreme courts decision
on that point.
As to the inter-mountain rate or
ders themselves, however, their effect
is that western cities east Of the
| Rocky mountains will not be forced
| to pay on their freight from the east
the regular rate through to the Pa
cific coast and then also another rate
from the Pacific coast back to their
stations They viii be forced, how
ever to pay certain increases over the
normal rates from certain zones.
AS "A result Of the decision, all dis
Cussion Is removed az to the COmmls-
siOn's right to pas on the reasonable
ness of lower rate for hauls 10 d
more distant city than TO nearer
one in the same direction. II rcCOg-
nlZeS the COMMISSION power TO Ilh
such rates by zones as distinguished
from taking up the conditions sur
rounding each point OF shipment In
the United States.
Chief Justice White announced the
unanimous decision Of the court hc
said the case turned largely ON the
construction and validity OF the long
and short haul clause in the fourth
section OF the interstate commerce act
as amended In 1910. and which trans
fnrred from the railroads TO the COM
mission the power hitherto reposel
! by congress in the railroads TO deter
mine what exemptions had been made
from the general prohibition against
charging less for a long haul than for
short haul lie said If IT were valil
| for congress to allow the railroads
| to exercise the power, II was valid for
congress to let the commission exer
else II.
After all mas been said" continued
Justice White. "the provisions. whit.
| involving. of course. a certain latitude
/ Of judgment and discretion. are no
more underlined and uncertain since
amended than they have been FROM
| the beginning"