Arizona republican., 1914-06-23
Interstate Commerce Con- mission is Upheld by the Supreme Court Despite Strong Attack by the Railroads
ECHO OF THE
 COMMERCE COURT
Higher Body Overturns the Contention That Commis- sion Had No Authority to Issue "Blanket" or Zone" Orders
ASSOCIATED PRESS p1spArcHI

ASSOCIATED PRESS DIsPATcHl
 WASHINGTON, June 22.-The inter state commerce commissions so-called inter- mountain rate orders were sus- tained as valid by the supreme court which held, at the same time, that tho long and short haul clause of inter state commerce law is constitutional Both had been attacked by the trans continental railroads. The defunct commerce court, passing over the con stitutional question, had annuiied the orders on the ground that the con- [ mission had no authority to issue blanket or zone orders and might act on only the reasonableness of spe- cific rates.
 In overturning that contention and holding that the commission had such power, the supreme court decided a point which lawyers and close observ- CTS of the interstate commerce com missions procedure say is of equal importance to the inter-mountain rate case itself-if not greater. Opposition to the five per cent increase in freight | upon which the interstate commerce commission is expected to announce it's decision at any day, has been based principally upon the contention that the commission would not have au- thority under law to grant such ! blanket" increase. Copies of the courts decision today were sent i'm ! mediately to the commission for it's guidance. What the effect, if any. of ] the decision upon the rate case may 1 be, can only be a subject of conjec- 1 ture. There are those among the well 1 informed in the commissions proceed | ure however who say that the de- 1 cision in the disposition of the rail- roads application has been delayed awaiting the supreme courts decision upon that important point
 1 As to the er-mountain rate orders 1 themselves, however. their effect is that such western cities west of the | Rocky mountains as Reno, Spokane ! and Phoenix will not be forced to pay | upon their freight from the east the
 regular rate through to the Pacific l coast and then also another rate from i the Pacific coast back to their station, because the railroads are competing
 with Waterborne traffic around Cape Horn or through the Panama canal. 1 They will, however, pay certain in l creases over the normal rates from l certain zones. Thus the railroads may
 charge no more than the regular rate
 on shipments originating in the terri 1 tory west of a vertical line drawn 1 through St. Paul. They may, however.
 charge an increase of seven per cent
 on those originating between St. Paul
 and Chicago, not more than fifteen Der 1 cent on those between Chicago and | Pittsburg and not more than 25 per cent on those between Pittsburg and the Atlantic seaboard. These increases the commission prescribed as reason | able because of the condition of the
 water competition.
 As a result of the decision all oues- tion is removed as to the right of the
 commission not only to pass on the reasonableness of a lower rate for q.
 haul to more distant city than to &
 nearer one in the same direction. but
 also to fix how much the difference
 may be. are removed. It recognizes the power of the commission to fix such
 rates by zones. as distinguished from
 taking up the conditions surrounding
 each point of shipment in the United
 States.
 Chief Justice White announced the
 unanimous decision of the court. He
 said the case turned largely upon the
 construction and validity of the long
 and short haul clause in the fourth
 section of the interstate commerce act.
 as amended in 1910.