The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-06-23
|NTERMOUNTA|N
RATE ORDER HELD
VALID BY COURT
Long and Short Haul Clause
of Interstate Commerce
Law Is Held Con-
stitutiOnal

Washington, June 22.-The interstate
commerce commissions so called inter-
mountain rate orders were sustained as
valid today by the supreme court which
held, at the same time, that the long and
short haul clause of the interstate COM
meree law was constitutional. Both had
been attacked by transcontinental rail-
roads.
The defunct commerce court. passing
ever the constitutional question, had an
nulled the orders on the ground that the
commission had no authority to issue
blanket" or zone" orders, and might
act only on the reasonabeness of specific
rates. In overturning that contention
today and holding that the commission
did not have that power, the supreme
court decided a point lawyers and close
observers of the interstate commerce
commissions procedure say is of equal
Importance to the intermountain rate
case itself-if not greater.
Opposition to the five per cent increase
in freight rates being asked by the east
ern railroads-and on which the inter-
state commerce commission is expected
to announce it's decision any day--had
been based principally on the contention
ity under the law to grant such blank
ct" increase.
Decision Delayed
what effect, if any, of the decs-
ion on the rate case may be, only can be
the subjecture. Some among the we'll in
formed in the commissions procedure,
however, say the decision in the DISPOSE
ton of the railroads application has been
delayed awaiting the supreme courts de-
cision on that point.
As to the intermountain rate orders
however, their effect is that
such western cities as Reno, Spokane and
Phoenix. will not be forced to pay on
their freight from the east, the regular
rate through to the Pacific and then also
another rate from the Pacific back to
their stations. They will be forced, how
ever to pay certain increases over nor
NAL rate from certain zones.
As a result of the decision all discussion
is removed as to the commissions right
not to pass on the reasonableness of
lower rate for haul to a more distant
city than to a nearer one in the same di-
rection. 1t recognizes the commission S
power to fix such rates by zones as dis
tinguished from taking up the conditions
each point of shipment in
the United States.
Unanimous Decision
Chief Justice White announced the
una nimous decision " tine court. The
case turned largely on the construction.
and validity of the long and short haul
In the fourth section of Interstate COM
merce act, as amended in 1910 His con-
eession was that the amendment in 1910
from the railroads to the
commission the power hitherto reposed by
Congress in the railroads to determine
what exemptions should be made from
the general prohibition against charging
less for a long haul than for a short haul.
He said if it We're valid for Congress to
allow the railroads to exercise the power,
ii was valid for Congress to let the COM
mission so exercise,
After all had been said continued
Justice White, 1.-THE provisions while in
volving of course, a certain latitude of
Judgment and discretion. are no more I'M
defined and uncertain since amended than
they have been from the beginning"