The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1918-01-14
RAILROADS LOSE
IN HIGH COURT
Illinois Central and Twenty.
Eight Other Roads Fail in
Fight on Two-Cent Fare.

Washington, Jan. 14.--The Illinois
Central railroad and twenty eight
other roads, by an opinion Of the su-
prsme court today, lost their fight to
have the Illinois cent passenger fare
law set aside.
Federal DEGREES disnissing proceed
ings instituted by the Illinois Central
to restrain the Illinois public utilities
commission from placing into effect
the 2-cent rate we're sustained.
The Illinois 2-cent passenger rate
law case grew out Off an attempt by
railroads to apply to commerce wholly
within that state a rate of "a cents
mile, fixed by the interstate COM
merce commission for commerce be-
tween interior Illinois points and st.
Louis, Mo-, and Keokuk, Ia. The IL
linois public utilities commission re-
fused to recognize the rate and or
dered 1t suspended, threatening with
prosecution any railroad that attempt
ed to enforce it.
The 2-cent rate law went into effect
July /, 1907, when fares from Illinois
points to st. Louis, which had been
on O. Scent basis, were reduced to 2
cents mile plus bridge tolls. This
rate remained in effect until Dec. l.,
1914, when Illinois carriers advanced
their passenger rates between St.
Louis and Illinois points to Q 1-2
cents a mile, but left the rates be-
tween points inside the state un-
changed. The year following, the in
terstate commerce commission in the
western passenger fares case found
that rate of "a cents a mile for In
terstate fares on certain Illinois rail-
roads was fair and that a similar
rate was justified In Illinpis, Wiscon-
sinsand other states In that section
of the country. 9
Business Men Complained.
On June IA, 1915, the Business Mems
league of st. Louis complained to the
interstate commerce commission that
the rates then in effect between Illi-
nois towns and St. Louis were dis
criminatory. The Keokuk Industrial
association, of, Keokuk, Ia, intervened,
declaring that any change made in
the rates affecting st. Louis also be
made regarding that city. In a re-
port made the following month, the
commission found that the rates then
charged between the two Missouri
and Iowa cities and Illinois were fair
and reasonable, but found that the
maintenance of lower passenger rates
from Chicago to Illinois points re-
suited in undue preference and ad-
vantages in favor of Chicago and
lishment by Oct. 16. 1915, of passen-
ger rates not in excess of "a cents
a mile so all discrimination would be
removed.
In a supplementary report, the COM
mission instructed carriers to prepare
schedules of rates between Illinois
points and st. Louis and Keokuk on
the same basis as those charged be-
tween Chicago and other Illinois
points. As a result of that order, the
railroads filed with the interstate COM
merce commission and the Illinois pub
lie utilities commission tariffs on
basis of "a cents a mile for the trans
portation of intrastate and interstate
passengers in Illinois. These rates
were to have become effective on Jan.
/, 1917.
Because of threats made by Illinois
authorities to institute legal proceed
ings against the railroads, twenty
nine carriers on Nov. 20, 1916. filed
suits. gainst the utilities commission,
the attorney general and the states
attorneys for the counties through
which the railroads run asking that
the commission be enjoined from sus-
pending the 2.4-cent rate and the
any suits against the railroads for
putting into effect the rate fixed by
the commission. The railroads charged
that the state 2-cent fare law was
void In that it conflicted with the or
ders of the interstate commerce COM
mission and the commerce clause of
the Constitution.
Dismissed for Lack OF Equity.
The state authorities in their an
swer alleged that the federal commits
sion's orders were so vague, indefinite
and general in their terms that en-
forcement would be impossible should
the carriers desire to resist, but added
that the railroads had attempted to-
apply the order to all intrastate rates
in Illinois. as well as to rates not in
cluded in the reports and order of the
commission. 1t was further charged
that the commission had no power ito
make an order which. in the giiise of
discrimination between
these specifed localities. will operate
to strike down all intrastate regula-
ton in Illinois," Dental that the ex-
listing tariffs had resulted in any "un-