The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-06-22

tBy Ioased wIrc to E,cnIng Herald. ]


Washington. June 22-Tho su-
preme court today reversed the COM
merce court and upheld the inter-
mountain rate OF the interstate COM
merce commission. The commerce
court had held that the commission
could not make blanket or zone
rates. That is the contention % those
who are opposed TO the five per cent
increase In freight rates now being
asked by the eastern railroads.
Justice white first decided that the
long and short haul clause was con-
stitutionaL
The chief Justice next upheld tho
making Of rates by the commission.
by zones.
The zones selected by the commis-
sion were In substance the same as
those previously fixed oy the carriers
as the basis of the rate making which
was included in the tariffs which
We're under Investigation and there
fore We may put that subject cut Of
view said he Indeed. except as
to questions of power there is no
contention In the argument as TO the
inequality Of the zones of the per-
centages or as 10 any undue prefe~-
enco or discrimination resulting from
the action taken"
But be this as Il may. In view OF
the findings Of the commission as To
the system OF rates prevailing In tho
tariffs which were before IL OF the
incquitics and burdens engendercd
by such system. OF the possible ag-
grandizemcnt unuuturauy beyond the
limits produced by competition In IA
Nor OF the competitive points ana
against other points by the tariff ~
question. facts which We accept ana
which indeed are unchallenBed. We
see no ground tor saying that the
order was sustained by the facts on
which Il was based or that II exceeded
the powers which the statute con-
ferred and transcended the limits ot
the sound legal discretion which u
lodged N the commission when act
ing ON the subject before H."
on the constitutionality of the long
and short haul clause Chief Justice
white said;
1T is certain that the fundamental
charge that 1t makes is the omission
of the substantially similar circum-
stances aud condition clause thereby
leaving the long and short haul clause
In a sense unqualified. except insofar
az tho section gives the right TO the
carrier Ia apply To the commission Tor
authority 90 charge less for longer
than for shorter distances for the
transportation Of persons or property
and gives the commission authotity
from time 90 time 10 prescribe the
extent To which such desiEnated com
mon carrier may be relieved from the
operation of this section.
Prom the failure To Insert any
word ia the amendment tending 90
exclude the operation OF competition
as adequate under proper cirCum-
stances 90 justify the twarding Of re-
lief from the long and short haul
clause and there being nothing which
minimizes ana changes the appiic5-
tiou of the preference and discrimin-
ations clauses of the second and third
sections. IL follows that iu sub
stance the amendment intrinsicaiiy
states No new rule OF principal nut
simply shirts the powers conferred by
the section as b originally stood
that Is 10 takes from the carriers the
deposit of public power previously
lodged In them and vests Il in the
commission as a primary Instead OF "a
reviewing function"
The lntermouniain rate orders were
Issued In June and July. isii, by the
interstate commerce commission, un-
der authority of the ''long aud short
haul section" of the interstate COM
merce act. This section clothed the
commission with discretion Co maze
exceptions to the general rule, laid
down In the iaW that railroads should
not charge more for shori haul
than for longer haul IN the same
direction and over the same lines 1r
routes.
The orders were the outcome of a
change In the law In 1919 From
1857 10 1910 the law against a sreat-
or Charao for "A short than "A lOnaar