The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-06-09
May AFFECT.
FARGO RATES
DECISION IN SHREVEPORT CASE
GIVES INTERSTATE COMMERCE
COMMISSION MORE AUTHORITY
THAN STATE COMMISSION IN
CERTAIN INSTANCES.

BY its decision in the Shreveport,
Tex, rate case yesterday, the supreme
court rendered an opinion hat may
affect rates to Fargo. This decision
affected rates to cities on state boun-
daries and gives the interstate COM
merce commission power to regulate
rates over the state railway commits
sions.
The following account Of the con-
troversy is sent The Forum by the AS
ISOLATED Press:
The fight for better rate for Shreve-
port jobbers 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
initiated the contest before the Inter-
state Commerce commission in be-
half Of the jobbers along the Louis
iana-Texas border.
The Louisiana commission COM
planned to the interstate commerce
commission in March 1911, that the
class rates charged by the railroads
for transportation in a westerly di-
rection from Shreveport to points in
Texas were unjustly discriminatory
in that they were much greater than
the rates contemporaneously charged
70 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 around Texas and that out
side jobbers were not permitted to
enter into the enclosed field.
The Houston cast and west Tex G
railway company and the Texas and
Pacific Railway Co.. did not deny the
discrimination, but answered that the
Shreveport rates were reasonable in
themselves, and that the Texas rates
were not voluntary but were pre-
sCribed by the Texas railroad commits
sion. The interstate commerce COM
mission issued an order, holding that
an unjust discrimination existed and
directed the railways either to lower
the interstate rate from Shreveport tC
Texas points or to increase the Texas
rates from Dallas and Houston tc
other Texas points, SO as to remove
this discrimination. The railways
vainly endeavored to induce the COM
merce court to enjoin the enforcement
of this order.
One of the principal points Of con-
tention in the case was whether this
was a voluntary or an involuntary dis
elimination by the railways agains
Shreveport. The railways contendeC
that it was involuntary because they
were directed by the Texas railroad
| commission to put into force the low
Texas rates. For each higher ratt
charged. the railroads c~ontended they
would be liable under Texas law fol
a $1,000 penalty to the state, and from
{ $125 to $500 to the shipper. In add.
ton a fine of $4,000 might be forth
/ coming for failing to obey an order o,
the state railroad commission.
The government on the other HAND
]contended that the Texas rates wert
voluntary because the railways hat
not appealed to any court or commits
sion to have the Texas rates set aside
Another contention was whether thu
interstate commerce laws were 81
drafted as to confer upon the commits
sion jurisdiction over intrastate rates
that might affect interstate rates.