The Oskaloosa herald., 1914-06-11
COURT UPHOLDS
COMMERCE BODY
Commission Rate Making Power
Supersedes All Others.
DECISION BY HIGH TRIBUNAL
Ruling Is Believed to Be Most Sweep
ing Declaration In Favor Of Gov.
eminent Authority Ever
Made by v. s. Jurists-

"asuAAetOu, june S.-E1OiuAA6 Ih@s
the rate making power Of the inter
state commerce commission takes
precedence over the Jurisdiction OF
state commissions in situations where
the reasonableness Of interstate rates
is called into question, the United
States Supreme court handed down
decision unfolding the efforts Of ship
pers of Shreveport, La, to prevent al
legged discrimination against them BY
the Texas railroad commission in Ia
vor of Houston and Dallas, Tex.
The decision is believed to be one
Of the most sweeping declarations
in favor Of the dominant authority OF
the federal government that the Su-
preme court has yet made.
The interstate commerce commits
sion found that class and other rates
from Shreveport to Texas points were
unreasonable and ordered rates to be
eQualized 80 that Shreveport would
not be Disseminated against In favor
of Dallas and Houston.
Many Ways Of Conforming to Order.
Justice Hughes said there were sew.
eral ways Of conforming to the COM
missions order. Reviewing the OBJ
lection Of the railroads that the COM
mission could not reduce intra-state
rates to conform with interstate rates,
Justice Hughes said the power Of con-
gress was adequate to meet all the
emergencies that arise out Of local
interference with national inter
| course.
Justice Hughes said that congress,
not the state, might prescribe the rule
when state and national interests
conflict
Congress is entitled to keep open
the highways of interstate commerce
in the interest Of fair treatment to all
persons" said Justice Hughes.
He indicated that the government
must control rates In the interest Of
interstate commerce. Whether con-
gress reduces interstate rates to con-
form with interstate rates was not
material, the court said.
Features Of the Case.
In the Shreveport rate controversy
there was raised, according to the
government attorneys, the question
which was expressly reserved in the
famous Minnesota rate case, namely,
whether the Interstate Commerce
| commission has power to deal with
determinations resulting from rela-
ton between interstate and tntrastate
rates. The Interstate Commerce COM
mission held that 1t possessed such
power and the commerce court con-
Cured In this view.
The Shreveport litigation grew out
OF a protest made by shippers Of
! Shreveport. La, against discrimina-
ton by the Texas Railway commits
sion. The Louisiana Railroad com.
mission joined In this protest. 1t was
contended that the Texas commission
fixed rates so that business which
should have come to Shreveport be-
cause of its geographical location near
the Texas line, went to Houston and
Dallas. In other words, Shreveport
could not get business in competitive
territory In Texas-territory which
was a fair commercial field for the
activities of all three cities. The
Louisianans appealed to the Inter
state Commerce commission claim
ing that the rates from Shreveport
to Texas points on the Texas Pacific
railway and the Houston East and
West Texas railway were unreason-
able and discriminatory. The com
mission decided they were unreason-
able and prescribed lower interstate
rates. The railroads claimed these
rates were contiscatory and chal-
lenged the commissions authority.
On appeal to the commerce court
they were beaten. They then ap'
pealed to the Supreme court Of the
United States. The government
claimed that the commission had
power to deal with this class of dis
elimination because such power lies
exclusively in congress and Is be,
yond the power of the state even In
the absence of congress attempt to
exercise such power and also because
the interstate commerce act sough,
to prohibit all Determinations ovsl
which the power of congress was ex
elusive. .-.r