The Cordova daily times., 1919-06-03
COURT UPHOLDS FREIGHT RATE
 INCREASES l

WASHINGTON, June 3 (by Also. ciated Press).-Upon the decision of the supreme court yesterday depeMed the authority of the federal railrDad administration to continue the cofec- tion of increased freight and pasSen- ger intrastate rates as provided in orders issued by William c. McAhoo, when director general and placed in effect in June, 1918. Under these brd- CTS, a preciptate increase of twhty- five per cent was made in freight rhtes while general increase in passeiger fares to three cents mile basis has authorized. Receipts from intradta tate business of the carriers, railroadl ad- ministration officials said, reprebsnt between 35 and 40 per cent of the total operating income of the tres under government control or about $2, 900 100000.
 The decision resulted from apHmls brought by the government tpm North Dakota supreme court de4rees enjoining the Northern Pacific frail- road in that state as we'll as DirStor General Hines from collecting thk in- creased rates. The proceedings Fere originally instituted by North D$lota authorities, who contended the htes were illegal and made without ap- proval of the state board of atway commissioners as required by theilaws of that state and for that reaso1 the federal governments action wab an interference with state police pdkers.
 State officials further cont{ided that neither the joint resolution nor the railroad control act under fhich the government took over contrd and operated the rail systems of the toun try authorized the president td init fate intrastate rates; that the hates were established upon a misconttruc- tion of the powers delegated tb the chief executive and that they Iwere unreasonable.
 A general denial of these cdnten- tions was made by the government which insisted that the acts bnder which the government took ovef the operation of the roads were war heas- ures and that section ten of tha rail road act clearly gave the pre$dent power to initiate all rates.
 By three to two decision, theIstate supreme court held that authority was not conferred upon the President to initiate intrastate rates superseding |pre-existing rates prescribed by the states authority. The court also held that by exempting from control of the President the state police regula- tions" congress intended for the states to retain power to make rates. An order was entered by the court order calling upon the Northern Pa cific to stop charging rates provided in the federal order was entered by the court.
 While this case affected directly only North Dakota, similar proceed ings have been instituted in South Dakota, Nebraska, Iowa, Minnesota and Washington and upon this courts decision depends the outcome of these cases. Other suits of like nature have been threatened in number of other states according to government officials but pending final determina- tion of these proceedings which were designed by the government to be a tst case, state officials decided to withhold prosecution of those cases temporarily.
 Arguments in this case were heard on May 5 in the supreme court the court having previously agreed to ex- pedite consideration owing to the i'm portance of the questions involved and the serious effect such litigation might have upon the revenues derived by the government from the operation of the railroads.
 Tub and shower baths at the Holden pool room barber shop. 9-tf
 Best coffee in town at the City