Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-08-25

the railroads distracted public atten-
ton from every other aspect or the
transportation problem, the country
would perhaps have paid more atten-
ton to several recent rate decisions of
the Interstate Commerce commission.
As a result of these decisions. great
strides have been made toward MAX
ing federal regulation of railroad rates
supreme and putting the state COM
missions in condition of innocuous
desuetude.
In fact. II these decisions are up
held by the courts, state-made rate
systems will in the near future be a
thing of the past.
Within the last three or four weeks
the commission has published its de-
cision in the Missouri River-Nebraska
cases, in a consolidation of cases aris-
ing out Of the original Shreveport case
and in a case brought by the Business
Mems league of st. Louis to correct
discrimination against st. Louis al
legged to exist by reason of the two
cent passenger fares within the state
of Illinois.
Every one of these cases involved
the injury to one or more competitive
jobbing centers just outside the bor-
ders of a state by reason Of state made
rate systems enforced within the state.
In each case the commerce commls-
sion prescribed reasonable rates from
the points outside to points within the
state and ordered the railroads to re-
move the discrimination against the
outside points existing by reason OF
the lower state rates.
In none of these cases did the COM
mission find the state rates unreason-
able because confiscatory, although in
at least one the state authorities en-
deayored to force the commission into
such a declaration If it found against
the state rates. If the commission had
done so, the foundation would nave
been laid for a long struggle in the
courts over the proof of confiscation.
What that would have meant every
one knows who has even so much as
read the supreme court decision IN the
Minnesota rate case. There are goou
authorities for the view that it is
practically impossible to show by az
firmative evidence the conf1scatory
character of any one group OF rates,
no matter how low they may be.
In one decision disposing Of the Mis-
souri, River Nebraska cases the COM
mission fixed maximum rates from
sioux City, Council Bluffs, st. Joseph,
Kansas City, Atchison and other out
side points to destinations WITHIN the
state of Nebraska as reasonable. IN
general these were about on a ieVei
with the existing rates, though in some
cases small reductions were maze. IL
then ordered the railroads to desist
from discriminating against these
points and in favor Of Omaha, Lincoln
and other Nebraska jobbing centers
nv granting the latter lower rates Tor
similar distances. The existing rates
within the state are those fixed by the
Nebraska commission, on an average
something like 20 per cent less tnan
the interstate rates. While the com
mission cannot fix minimum rates and
cannot. therefore, directly order the
railroads to charge the rates IL mas
fixed as reasonable maximum, lts or
der to remove the discrimination ls
believed by interstate commerce law
yers to dispose of the Nebraska STATE
scale.
In the Shreveport case the Louisiana
commission was the complainant
against rates made by the Texas COM
mission which gave Texas distributing
noints a decided advantage in dis
tributing goods into eastern Iexas
over 1obbers at Shreveport La. IN
this case the commission decloeo
against the Texas rates more tnan
two years ago and ordered the rail-
roads TO remove the discrimination
against Shreveport, fixing a scale Oh
rates out from Shreveport CONSIDERABLY
above the state rates reaching me
same destinations from Texas polnts.
The Texas commission appealed to
the commerce court and the supreme
court. both of which upheld the red
eraI commission. Because OF various
combinations the latter suspended the
effectiveness of it's first order. 1t mas
now fixed a new scale Of rates from
Shreveport to Texas points which are
in general below the existing rates.
but somewhat higher than II nad pre-
viously fixed and substantially nisner
than the Texas state rates for similar
distances.
In the third case the commission
hos ordered the railroads operating in
Illinois and reaching st. Louis TO re-
move the discrimination against 81
I,ouis caused by the two-cent rares
within the state Of Illinois, which are
considerably lower than interstate
fares from st. Louis to Illinois points.
The commission, following its decision
Of a few months ago in the western
passenger cases, fixes "a Genus iiiiie
as a reasonable maximum.
Inasmuch as the legal qu ssongh the
courts already, it is expected that the
railroads will proceed to comply with
tha commission's orders in these cases
Nv disregarding the state rates ana
hitting their intrastate charges on
the interstate basis. Whether under
the circumstances the state or federal
courts will enjoin them from doing SO
at the petition Of state commissions
remains to be seen ,,,u;,,
A curious incident OF the Mlssouri
ance of Clifford Thorne, chairman OF
the Iowa commission, on behalf OF
Iowa and Kansas cities and IN OPPOSE
tiom IN the Nebraska state-made rates.