Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-03
RAIL AND WIRE RATE
INCREASES UPHELD
U. S. Supreme Court Holds
Presidents Powers Allowed
Fixing of lntrastate Charges
BRANDEIS MAKES DISSENT

Washington. June 3. - Increased
railroad, telephone and telegraph rates
ordered by the railroad administration
and by the postmaster general, respec-
lively. were sustained yesterday by the
United States Supreme Court. which
held that the war powers conferred by
Congress upon the President included
sweeping control over the railroad and
wire systems, with supreme and con-
elusive" authority to fix intrastate
rates.
These questions were decided in two
opinions rendered by Chief Justice
White. The one relative to the rail-
road rates was unanimous, while JUS
tice Brandeis dissented in the telephone
and telegraph decision, but without
rendering a separate opinion. The opin-
ions affect litigations which have been
instituted in about forty states and
which involved the validity of both rate
orders.
As n result of the courts opinion,
injunctions restraining the director
general of railroads from enforcing an
order increasing freight and passenger
rates in North Dakota were dissolved.
The court also upheld the dismissal
of proceedings brought by Massachu-
setts state authorities to prevent intra-
state telephone rates in that state being
increased and set aside injunctions
preventing advance of telephone rates
in South Dakota and telegraph rates
in Illinois. In addition, the court also
dismissed an original suit brought by
the state of Kansas against the post
master general seeking to have the
rates prescribed by him in that state
declared unreasonable and to prevent
them from being made effective.
In deciding the cases the court held
that the resolutions under which the
government took over control of these
utilities, together with the Presidents
proclamations and the railroad control
act. gave the United States complete
possession and control" under the war
powers and that Congress had right
to confer these powers upon the Presi-
dent. -,
Don IDe 1dtP O1 INC 6tdluttS'
Chief Justice White said in deciding
the railroad case. ''it is manifest that
they were in terms based upon the war
power, since the authority they gave
arose only because of the existence of
war. and the rights to exert such au
thority was to cease upon the wars
termination. To interpret, therefore,
the exercise of the power by a pre-
sumption of the continuance of state
power limiting and controlling the ma
tional authority was but to deny its
existence
"Although il may be conceded" the
chief justice said in the telephone case,
that there is some ground for con-
tending, in view of the elements of au-
thority enumerated in the resolution of
Congress, that there was power given
to take less than the whole IL the Presi-
dent deemed it best to do so, we are
OF the opinion that authority was con-
ferred as to all the enumerated ele-
ments and that there was hence a right
in the President to take complete pos
session and control to enable the full
operation of the lines embraced in the
authority
Members of Congress regarded the
opinions with interest and declared the
courts views would aid them greatly
in formulating wire and railroad legis-
lation. The Senate interstate commerce
committee met today to consider the
resolution of Senator Kellogg. of Min
nesota, providing for the repeal of the
act under which the wires were taken
over and for return of the properties
to private ownership on June 30. The
committee expects to report favorably
today measure providing for the turn
ing back of the wire systems.