New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-23

court for more than a year. Inc deCl-
80, vras AGAINST sixteen Western rail
roods The court reversed the decision
nj the Commerce Court which sus-
rended an order Of the Interstate
commerce Commission directing dras-
tic rate reductions or westpounu
freight % Spokane and other inter-
mountain cities.
The court held that Tie long aAd
short haul amendment to the com
lccrce act was legal and not a contra
yention OF the Constitution. The court
also held that the Interstate Commerce
Commission had not overstepped l''
authority.
The intermountain rate orders were
issued in June and July. 1911, by the
Interstate Commerce Commission, un-
der authority Of the lorg and snort
haul section of the interstate COM
merce act. which clothed the commas
sion with discretion to make eXcep-
ticns to the general rule laid down IN
the law, that railroads should not
charge more for a shdtt haul than for
q longer maui in the same direction
and over the same lines or routes.
Practically all the railroads travers-
ing the intermountain region OF the
West applied to the commission to
have exceptions made, so that higher
rate could be charged on shipments
from the East to intermountaln cities,
such as Spokane. Reno and Phoenix.
The rates to these cities from points
east of the Rockies had for years been
made by adding the through rate to
the Pacific Coast and the local rate
from the Pacific back to the interior
city.
Intermountain Points Rebelled.
The intermountain points rebelled
against what they claimed was
monopoly given 10 the Pacific Coast
cities OF the trade at all points from
the coast back TO the very doors OF the
intermountain cities.
The commission refused TO let the
railroads charge higher rate to the
protesting cities than was charged tc
pcints beyond them on shipments
originating west of a line that would
nan north and south through st. Paul,
but on shipments originating between
ST. Paul and Chicago the railroads
were permitted to charge an increase
Of not more than 7 per cent; on snip
ments originating between Chicago and
pittsburgh. not more than 10 per cent,
and from the zone between pittsburgh
ard the Atlantic, not more than %
per cent. -
The Commerce Court set aside the
orders on the ground that the COM
mission had no authority to issue
"blanket" orders, or zone orders
but could act only in regard to the
rcasorableTess or unreGsonaDleneSs Oh
specific rates.
The ground on which the railroads
asked for the exemption under the
long and short haul clause was that
water competition required the rail-
reads to carry commodities 10 inc
coast at an unreasonably low rate, and
that the rates proposed Tor the inter
mountain cities were reasonable IN
tLerneeIves for the service performed.
Inasmuch as Middle western cities
would not be able to compete WITH
New York and Atlantic Coast cities II
New York alone enjoyed the low rates,
The railroads claimed right, by vir-
tue Of "market competition" to allow
Middle Western cities to enjoy the
same rates as New York.
"Zone" Orders Upheld.
The Chief Justice next upheld the
making Of rates by the commission,
by zones, saying:
"The zones selected by the commits
sion were in substance the same as
those previously fixed by the carriers
as the basis Of the rate making which
was included in the tariffs which were
under investigation, and therefore we
may put that subject out Of view. In
deed. except az to questions OF power,
there is no contention IN the argu-
mcnt as to the inequality Of the zone
or percentages, or as 10 any undue
preference or discrimination resulting
from the action taken.
but be this as it may, in view OF
tho findings Of the commission as -
the system Of rates prevailing IN the
tariffs which were before II, OF the
ii,eoualities and burdens cngendered
by such system, OF the possible ag-
prandizement unnaturally beyond the
limits produced By competition IN
favor OF the competitive points ana
against other points by the tariff in
question, facts which we accept and
which indeed are unchallenged, we
geo no ground for saying that the
order was not sustained by the facts
uron which IL was based, or that u
exceeded the powers which the statute
or transcribed the limits o.
Tie sound legal discretion which 1t
LODGED in the commission when acting
tpon the subject before it,"
Long and short Haul Clause.
On the constitutionality Of the long
and short haul clause Chief ,k2s,,ee
White said: