The Prescott daily news., 1915-10-20
WIDE SPREAD INTER.
 EST IN RATE LITIGATION
Railroad Com. w. F. Mcknight
 Makes Lengthy Statement Commission Lacked Funds Permit Passenger Rate to Pass

Little Rock, Oct. 19.-There has been a widespread interest in the state in the progress of the rate litiga- tion directed by the Arkansas Rail road Commission. The following statement about it is made by Com missioner W. F. Mcknight.
 When the temporary restraining order was secured by the trunk lines in 1908, and later made permanent by the Federal Court, an agreement was reached with the other lines in the State, by counsel for the state, that the cases of the Cotton Belt and the Iron Mountain would be appealed to the United States Supreme Court. At that time the state undertook to get the other carriers to abide by the de- cision of the U. s. Supreme Court, but they would only agree to let their cases remain stau quo until the deci- sion of the court was delivered.
 Immediately after the decision was handed down in 1915, the Frisco began to prepare it's case to be heard before the Federal Court for a per manent injunction, which was finally decided by the Federal Court during April, 1915, the state losing, and similar order was made as in the cases of the Cotton Belt and the Iron Moun- tain. The State, anticipating the de- cision of the district Federal Court, had asked the Legislature to appro- priate sufficient funds to carry the case to the U. S. Supreme Court, and upon it's defeat in the district Federal Court, the case was appealed.
 During all this time, from Sept. 8. 1908, to July 19, 1913, the roads were charging three cents a mile, and had practically their own freight tariff, slightly modified by the court. Nat urally, by operation of law, the form CT tariff of the Commission, No. 8, went back into effect, as did also the
 
 lines called their representatives to- gether and made an appeal to the Commission, for an increase in rates. After many hearings, the Railroad Commission Tariff No. was promul- gated, May 20, 1915. A day or two before. this became effective the Fris- co procured from the Federal court restraining order to prevent the Com mission from putting this tariff into effect on its line, although it made small increase in revenue for the rail roads over the old Commission rate. As usual this was set down for a final hearing at St. Paul.
 After the decision of the District Federal Court, the Frisco returned to the Scent rate. After time appli- cation was made for a restraining order against the new tariff by the other trunk lines, and one or two small lines made application, to be heard at the same time, for a restrain ing order against the 2-cent rate At this hearing, the state being without funds, Assistant Atty. Gen. Streepey asked that the matter be continued until the state could devise some plan to meet the situation. Upon request of the Commission, the governor is sued a proclamation authorizing $2500 to carry on the fight, but the Commission could raise only $50 on the vouchers. The case was set down for final hearing at St. Louis Dec F. The Frisco had put in a tariff out of ali line with either state or interstate tariffs. No sooner had a copy of this tariff reached the Commission than an investigation was made to determine if the state rates were not discrimi- mated against. This showed that the Frisco had great many interstate rates much lower than those propos- ed for the state. The Commission then asked the Federal Court for a modification, and June 30 it was or dered that the Frisco must put in eff feet on Arkansas business a tariff not exceeding the interstate rates. The Frisco submitted new tariff greatly reducing rates, but refused to put in joint and town-switching rates. The Commission made application to com pei such rates, contending that the former order of the court contem- plated this. The road denied this, but the last of September the court order ed such rates put in Oct. IL.