Omaha daily bee., 1915-10-25
NEBRASKA RATES
UNDER FIRE over
ORDER nineteen
State Rail Board Will Have Its Day
in Court This Week Before
Interstate Commerce
Commission.
COMPLAINT OF OTHER CITIES
Places Out Of State Demanded Re-
ductions in Interstate Tariffs
that Would Affect Intra-
state Order.
NEBRAsKANs IN WASHINGTON

WASHINGTON, Oct. 24.-(Sptcial
Telegram. Nebraska will have its
day in court this week. when the
cases growing out of "Order No. 49,"
will be argued before the Interstate
Commerce commission. Appearing
for the state, the railway commission
and the Omaha Commercial club will
be Attorney General Willis E. Retd,
Edward p. Smith, general counsel
for the attorney general, who ar
rived this morning, and Henry I.
Clarke. jr.. chairman of the Ne
braska State Railway commission,
and e. J. McVann.
Order No. 10 was issued on the 9Th OF
September. 1914. and put into effect the
new schedule of rates between points
In the state which had been promul-
gated by the commission.
Reduction of Twenty Per Cent.
This schedule caused reduction of ap-
proximately 20 per cent in the then ex-
listing class rates between Omaha and
all points In the state. The schedule
was the result OF a conference between
the commission and all the commercial
bodies of the state and for the first time
ell those interests stood on the same
platform. But In the meantime the fed
eral commission had prescribed a scale
of class raes to DO applied from interior
points In Iowa to points in Nebraska and
Kansas, which went into effect In June,
1914. which fixed rates to a large part OF
Nebraska lower than tho rates in effect
from Sioux City and Council Bluffs to
the same destinations.
Tho operation of the federal act there
fore caused reductions In existing class
rates from Council Bluffs and Sioux City
to oil sections In Nebraska affected by
the federal scale.
Gall for Equality,
Soon after the Nebraska order became
effective, which reduced state rates 20
per oent, Council Bluffs, Sioux City, At
Gibson. ST. Joseph and Kansas City de-
manded that the carriers reduce rates
from those cities to Nebraska TO an
equality with Omaha Upon the refusal
OF the railroads to comply with these
demands. the five cities severally filed
complaints with tho Interstate Com
merce commission. These five COM
plants, which are similar I'm substance,
set forth that the interstate rates from
Missouri river points into Nebraska are
unreasonably excessive and discrlmina-
tory and that the interstate classifaca-
ton causes discrimination in SO far as It
differs from the lower Nebraska cIassi-
ncation.
Meaning of Action,
Ostensibly these cases, which doubtless
will be consolidated. are a complaint OF
the five cities against the Chicago a.
Northwestern railway ct al. but in
reality they are an attack upon the In
trastate rates fixed by the railroad COM
mission of Nebraska whereupon the com
mission. by Attorney General Reed, asks
leave to intervene in order 70 protect the
integrity of the commission and the
Commercial club OF Omaha, through Mr..
McVann. asked similar privilege for
the purpose of protecting the interests of
that city Leave was granted by the
commission In each case.
Neither the railway commission nor
the shippers ot Omaha makes objection
TO the restoration of the status quo prior
to May 81, 1914. 30 far as the rates from
Sioux City and Council Bluffs are con-
cerned, but Omaha does object to the
restoration to the old relation of Me-
braska rates between that city and lower
Missouri river points on various grounds.
CuIminatiOn of Contest.
The Nebraska order No. 10 was the
elimination of a contest between ship
pers and carriers which had been pend
ing for some eighteen years and in viesY
of the fact that the carriers have not
availed themselves OF their legal rights
to test In the manner prescribed by law
the right Of the commission TO fix the
class rates on intrastate traffic and as
no attempt has been made TO prove that
the rates are nonproductive or unrea-
sonable. the state appears here TO argue
most strenuously against any action Of
the federal commission which would lead
to an Increase in intrastate charges.
Reeds Contention.
Mr.. Reed contends first that the rail-
roads have not shown or have they
attempted to show that the Nebraska
rates are unreasonable, nor has any such
attempt been made by the cities who are
parties TO these proceedings. and he in
sists with much force that a reasonable
able discrimination. lie points out that
the laws and the decisions OF various
courts have upheld the right OF states
Continued on Page Two, Column Three J
Don TaSnar POrtOla.