The Birmingham age-herald., 1918-11-24
KENNEDY URGING
 GENERAL PROTEST Wants States Rate-Making
 Power Preserved LETTERS ARE SENT OUT Alabama Official Thinks McAdoo's Rate Classification Plan Is Usur-
 patton of States Consti- tutional Right

Montgomery, November 23.-(Spe- cial.)-The Alabama public service commission Saturday wrote chapter three in the states rights story when its president, Samuel P. Kennedy, ad- dressed a letter to Senators Bankhead and Underwood of Alabama and the 10 congressman as well as Governor Henderson and Gov. Elect. Thomas r.. kilby. The letter is 8 strong protest against the "usurpation of power by the government bureaus in establish ing certain permanent policies relative to rate making within this state"
 The letter referred to the proposed increases or rather. the proposed uni form freight rate classification of Di- rector General McAdoo. The letter followed the one of Friday in which Charles A. Prouty, director at Wash ington, was told of the power of the state commission to fix freight and passenger tariffs
 Chapter one was written by the com missions president two weeks ago, when MT. McAdoo's proposed uniform rate-classification resulted in the com mission members saying they would not approve any new rates without & full hearing. The second chapter came Friday in the letter to MT. Prouty, in which the state commission makes 1t clear the government has no authorl- ty to change the interstate rates.
 Tie letter follows:
 TEXT OF LETTER
 Under date of october 25, Director General of Railroads, MT. w. c. Mo- fnv-x or6a t1 nctl l lf,f of the Alabama public service com. mission, a communication enclosing a certain uniform tentative scale of rates and a uniform classification, both of which were to be used in the construc- tion of inter and intrastate rates throughout the southern territory.
 q have had further communication with MT. McAdoo's director of traffic and public accounting, MT. Charles A. Prouty, on this subject. Mir. Prouty has been very insistent that it was encumbent upon the federal bureau with which he is connected, to estab- fish a policy of rate making through out the country, which, to him. seemed wise
 This proposed method of rate mak- ing was to eliminate such discrimina- tion as. in the opinion of his bureau, was deemed wise, and, therefore, had no sort of regard for intrastate rates established by various rate making bodies of the several states.
 T have advised both MT. McAdoo and Director Prouty that the public service commission of Alabama has the sole right delegated to it by the legis- lature of this state, under the consti- tuition of the state, to properly regu- late all intrastate traffic in this state and that it will not undertake to dis cuss the propriety of any other bureau or body making intrastate rates for Alabama.
 QUOTES CONSTITUTION
 Section 243 of the constitution of this state. which I am sure you are fa miliar with. but which you will per init me to quote for reference. is as follows:
 Section 243 The power and authority of regulating railroad freight and pas senger tariffs, the locating and build ing of passenger and freight depots, cor recting abuses, preventing unjust discrim- nation and extortion and requiring reas- onable and just rates of freight and passenger tariffs, are hereby conferred upon the legislature, whose duty it shall be to pass laws from time to time regu- lating freight and passenger tariffs, to prohibit. unjust discrimination on the va rious railroads, canals and rivers of the state, and to prohibit the charging of other than just and reasonable rates and enforcing the same by adequate penalties
 When the government saw fit, as war measure, to take over certain rail roads for the furtherance of the prosecu- ton of the war, and called on the pub lie service commission of Alabama for