The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-06-11
SEVERE BLOW GIVEN
TO RAILROAD BOARDS
Action of Court Far Reaching
Puts Roads More Under Inter
state Commerce Commission.

washington. juno 9.-The supreme
court today upheld the Interstate Com
merce commissions orders in the
shreveport rate case, thus placing in
.erstate railroads more under the com
mission M less under state commits
sions.
Justice Hughes announced the courts
decision. He spoke OF the unrestricted
power of the Interstate Commerce COM
mission over interstate commerce, say
ing the commission was expressly
created to prevent conflicting state
Justice Hughes pointed that con-
gress and not the states had the power
to prevent the Instruments OF inter
state from being used so as
TO injure interstate commerce.
The far reaching effect of the decis-
ion lies in tho fact hat rates which the
Interstate Commerce commission ORD
cred indirectly increased TO remove dis
elimination, were prescribed by the
Texas state railroad commission. Un-
der the federal commissions order. the
only way the railroads may escape con
f1ict with the Texas commission Is to
reduce the interstate rates from
Shreveport to Texas cities so as TO put
the Louisiana city on q competitive
basis with Texas jobbing centers.
Justice Hughes expressly recognized
the Importance OF the case so stating
as he concluded his opinion.
But it is essential" he added. "that
interstate m have one master
and not many"
History Of Case.
The night for better rates for Shreve-
port jobbers into Texas promised from
the start to establish q 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 behalf
OF the jobbers along he louisiana
Texas border.
The Louisiana commission complain
ed to the Interstate Commerce Sommfs-
sion In March, 1911, that the class
rates charged by the railroads for
transportation in a westerly direction
from Shreveport to points in Texas
were unjustly discriminatory in that
they were much greater than the rates
contemporaneously charged for the
transportation OF like traffic from
Dallas and Houston, in Texas. to the
same points. They complained, in
substance, that q trade wall had been
erected around Texas and that outside
tobbers were not permitted to enter in
to the enclosed field.
The Houston, East e. West Teas
Railway company and the Texas &
Pacific Railway company did not deny
the discrimination, bur answered that
the Shreveport rates were reasonable
in themselves, and that the Texas rates
were not voluntary but were prescribed
by the Texas railroad commission. The
Interstate Commerce commission Is
sued an order, holding that an unjust
discrimination existed and direeted the
railways either to lower the Interstate
rate from Shreveport to Texas points
or to increase the Texas rates from
points, so as to remove this discrim-
ination. The railways vainly endeav-
ored to Induce the commerce 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 against
Shreveport. The railways contended
that it was involuntary because they
were directed by the Texas railroad
commission to put into force the low
Texas rates. Fer each higher rate
charged, the railroads commended they
would be liable under Texas law for a
Sc, 1000 penalty to the state, and from
1925 to $500 to the shipper. In addi-
ton q fine OF $4,000 might be forth
coming for failing TO obey an order OF
the state railroad commission.
The government on the other hand
contended that the Texas rates were
voluntary because the railways had not
appealed to any court or commission to
have the Texas rates set aside. .