The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1919-06-03
RAILROAD RATES IN
STATES UPHELD BY
SUPREME COURT TODAY

Washington, June 2.-Railroad pre-eX
isting intra-state freight and passenger
rate increases made by the railroad ad-
ministration last June, We're today up
held by the supreme court.
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 intra-state rates
as provided in orders issued by William
c. McAdoo when director general and
placed in effect in June, 1918. Under
these orders, a precipitate increase OF
twenty-five per cent was made in freight
rates while a general increase in pas
senger fares to three cents mile
basis was authorized. Receipts from
intrastate business of the carriers, rail
road administration o--cialS said. re-
present between 80 and 40 per cent of
the total operating income of the lines
under government control, or about
| s., 900 900 600.
The decision resulted from appeals
brought by the government from North
the Northern Pacific railroad in that
state as well as Director General Hines
from collecting the increased rates. The
proceedings were originally instituted
| by North Dakota authorities, who con
| tended the rates We're Illegal and made
| without the approval of the state board
of railway commissioners as required by
| the laws of that state, and for that rea-
son the federal governments action was
an interference with state police powers.
state officials further contended that
neither the joint resolution nor the
railroad control act under which the
government took over control and OPP
Grated the rail system of the country
authorized the president to initiate in
trastate rates; that the rates We're es
tablished upon "A misconstruction of the
powers delegated to the chief executive
and that they We're unreasonable.
A general denial of these contentious
was made by the governrtent which in
sisted that the acts under which the
government took over the operation ot
the roads We're war measures and that
section ten of the railroad control act
clearly gave the president power to ini
tiate all rates.
BY a three to two decision the state
supreme court held that authority was
not conferred upon the president to ini
tiate intraState rates superseding pre-
existing rates prescribed by the states
authority. The court also held that by
eXempting from control of the preside nj
the state police regulations" congress
intended for the states to retain power
| ia "a n
the Northern Pacific to stop charging
rates provided in the federal order was
entered by the court.
While this case affected directly only
North Dakota. similar proceedings hav,
been instituted in South Dakota, Nebras
ka, Iowa, Minnesota and Washington
and upon this courts decision depend.
the outcome of these cases. Other suit.
of a like nature have been threatened
in a number of other states according t
government officials, but pending fina
determination of these proceeding
which We're designed by the government
to be a test case, state officials decided
to withhold prosecution of those case
temporarily.
: Arguments i'm this case were heard OF
May 8 in the supreme court. the cour
d having previously agreed to expedite
consideration owing to the Importance
of the questions involved and the serious
effect such litigation might have upol
the revenues derived by the govern
, ment from the operation of the rail
roads.
The court held that the authority
conferred by the resolution and the ac
| wara war mowers conferred ON III,
, president and that the power of thu
, federal government. was supreme anC
conclusive" The opinion was unani
nous.