The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-06-08
Rules Against Powers Of State
Commissions in Fixing
Rates, in Hard Fought
Shreveport Rate Case.
DECISION ONE OF MOST
IMPORTANT RULINGS
Contention That Trade Wall
Has Been Set Up Around
Texas Through State Au-
thority Is Sustained.
my Leased Wire to Evening Herald

my Leased Wire 60 Evening Herald.
Washington, June S.-The supreme
court today upheld the interstate
commerce commissions orders in the
Shreveport rate case. thus placing in
terstate railroads more under the
commission and less under state
commissions.
Justice Hughes announced the
courts decision. He spoke of the uu-
restricted power of the interstate
commerce commission over interstpte
commerce. saying the commission was
expressly created 10 prevent conhict-
ms state legislation
Justice Hughes pointed out that
congress and not the states has the
power TO prevent the Instruments ut
Interstate commerce from being used
so as 10 injuro interstate commerce.
The far reaching effect OF the decls-
ion lies in the fact that rates which
the interstate commerce commission
ordered indirectly increased TO Remove
discrimination we're prescribed hy the
Texas state railroad commission
Under the federal commission or
Ger the only way the railroads may
escape conflict with the Texas comm is-
sion Is 10 reduce the Interstate rates
from shreveport tu Texas cities so as
tu put the Louisiana city on "a com
petitiye basis with Texas jobhing CEN
ters.
Justice Hughes expressly recognized
the importance of the case. So stating
a. he concluded his opinion.
"But b is essential" he added. that
interstate commerce have dne master
and not many"
The fight for better rates lot
Shreveport iohbers into Texas prom
Used from the start To establish "a
precedent governing the future trade
OF cities along state boundaries. So
important was the matter deemed Ia
bo that the Louisiana railroad com
missluu itself initiated the contest be-
| fore the Interstate commerce COM
mission In behalf of the jobbers
/ along the Louisiana border.
The Louisiana commission com
| pia.ucd Go the Interstate Commcrc,
commission in March. 1911. that the
| class rates rhargcd by the railroads
/ for transportation In westerly di.
rection from Shreveport to points ir
I Texas were uulustly discriminatory
I In that they were much greater thur
/ the rates coutrmporaneuusly charged
for the transportation of lik" traffic
! from Dallas and Houston. in Texas
/ "a the same points They complain
ed In substance. that a trade wal
had bcen erected around Texas ant
TINT outside iobhers were NOS per
( mitted to enter into the enclosed
field
The Houston. East and West TeSai
Railway company and the Texas 4
Pacific Railway COMPANY did no
deny the discrimination. but answer
ed that the shreveport rates wer'
reasonable in themselves and tha
the Texas rates we're not voluutnr'
but were prescribed by the TcXa'
railroad Commission. The Interstate
commerce commission issued AN or
der. holding that an unjust discrim
iuation existed and directed the rail
ways either to lower the interstate
rate from shreveport TO Texas point
or 10 Increase the Texas rates iron
Dallas and Houston to other Texa
points so as 20 remove this discrlmi
nation. The railways vainly cndeay
ored Co induce the commerce cour
] 10 fNNhAN htif NiANA NfiiAfNh NA ANNN ~
der.
One of the principal points of con
tention in the ease Was whether thi
was a voluntary or an inVoluntar
discrimination By the railway
/ against shreveport Tho railway
contendod that Il was involuntary be-
cause they were directed by the Tex
i as railroad commission to put int
! force the low Texas rates. For enc
p higher rate charged the railroads
d contended they would hc liable unde
Texas law for q $4,000 penalty Co th
E state, aud from Sl25 90 $500 to th
: shipper In addition. a fine of 90
p might he furthroming for falling Q
obey an order of the state ailruI
commission.
The government on the other han
, contended that the Texas rates wei
/, voluntary because the railways ha
not appealed to any court or con
mission TO have the Texas rates -
d aside.
p Another contention was wheth'
4 the Interstate commerce laws WEI
. so drafted "a to cunfcr upon th
commission jurisdiction over intru
], state rates that might affect intel
stnte rates.