Grand Forks herald., 1919-06-02
DECISION OF
N. D. COURT
IS REVERSED
Power Of Federal Govern
nent Regarded as Conclu-
sive in Railroad Case.

Irelgnt and passenger rate increases
made by the railroad administration
supreme court.
North Dakota supreme court de-
crees enjoining the Northern Pacific
railroad and Director General Hines
from enforcing an order of the rail-
road administration increasing rates
in that state were reversed.
The court also set aside lower court
DEGREES which held that under section
fifteen of the railroad control act, pre-
effect as lawful police regulations.
The court held that the authority
conferred by the resolution and the
act were war powers conferred on
the president and that the power of
the federal government was supreme
and conclusive The opinion was
unanimous
Upon the decision of the supreme
court today depended the authority of
the federal railroad administration to
continue the collection of increased
freight and passenger intrastate rates
as provided in orders issued by Will
liam &. McAdoo when director gem
eral and placed in effect in June.
1918. Under these orders, precip-
tate increase of twenty-five per cent
was made in freight rates while
! general increase in passenger fares to
a three cents a mile basis was au-
! thorized. Receipts from intrastate
business of the carriers, railroad ad-
ministration officials said, represent
between 35 and 40 per cent of the to-
tai operating income of the lines un-
der government control or about $2.-
, 900. 100000.
The decision resulted from appeals
hrnl1Ohf hxy % $Y1
North Dakota supreme court DEGREES
enjoining the Northern Pacific rail-
road in that state as well as Director
General Hines from collecting the in
creased rates. The proceedings were
originally instituted by North Dakota
authorities, who contended the rates
!, were illegal and made without the ap-
S,commissioncrs as ,reani9Nd ak Che
laws of that state and for that reason
the federal governments action was
an interference with state police pow
ers ,ss
| State officials further contended
that neither the joint resolution nor
the railroad control act under which
/ the government took over control and
Operated the rail systems of the co,m-
try authorized the president to initiate
intrastate rates: that the rates were
established upon misconstruction OF
the powers delegated to the chief ex-
ecutive and that they were unreason-
able.
A general denial of these conten-
tions was made by the government
! which insisted that the acts under
which the government took over the
operation Of the roads were war
railroad control act clearly gave the
president power to initiate all rates.
BY three to two decision, the
state supreme court held that au
thority was not conferred upon the
president to initiate intrastate rates
superseding pre-existing. rates pre-
scribed by the states authority. The
from control Of the president the
state "police regulations" congress in
tended for the. states to retain power
to make rates. An order. calling up
on the Northern Pacific to stop charg-
ing rates provided .in-, the federal or
der was entered by the, court.
While this case affected directly on
i1y North Dakota, similar proceedings
have been instituted in South Dakota
Nebraska, Iowa, Minnesota and
Washington and upon this courts de-
cision depends the outcome of these
cases. other suits Of a. like nature
have been Threatened in number of
other states according to government
officials but pending final determine
ton of these proceedings which were
designed by the government to be q
test case, state officials decided to
withhold prosecution of those cases
temporarily. ..1.~l--.
= Arguments in this case were heard
i on May in the supreme court the
court having previously agreed to ex-
lpedite consideration owing to the inn
L. e r 49,. N~y>< L
and the serious effect such litigation
might have upon the revenues derived
by the government from the operation
of the railroads. zf- SFGss