Every evening, Wilmington daily commercial., 1919-01-21
NJ 'ADOO OvERRULtD
BY COMMERCE BOARD
l. c. c. Asserts Its Authority IN
Rate Question Over Director
General Of Railroads.

Washington, Jan 2l.-ln dcci-
sion which is bound 10 attract wide AZ
tention ms sounding a keynote To DUST
ness reconstruction and because al the
positive attitude of the Interstate COM
merce Commission m asserting its su
premacv over the director general "'
railroads. the commission ys~terdas ue-
clarcd IT'S full authority to rvie" rn'ee
tiNsd hy him
The commission goes even further and
orders the present director gencrh TO
establish new rates, on the basis pre-
scribcd hv the commission on lumber
and other forest products from Gait
fornia and certain northwestern points
TO destinations extending from lfnver
To the Atlantic scahosTd
Tho decision oi the Interstate Com
mercc Commission, which was written
by ClVdc b. Aitchison. formerly MEM
her 81 the oregon state railroad COM
mission. was handed down IN the case
III the Pacific Lumber Company, and
others against the Northwestern faClhc
Railroad { ompany. and Others and holds
that rates on lumber and other forest
products from certain western points
10 the east were unjust, unreasonable
and unduly prcudlclal TO the extent
that they exceed rates on some CommodI-
fir- from what arr known aS California
coast group points 10 the same deSu-
Hatlau~ east of Denver These rates were
-ourh, 90 hc liked by the railroad ad-
mlnistration when Mr. McAdoo was the
director general oi railroads
The commission rvfuscd IA to I'M
Trt.sssd with tho contention OF counsCl
iof the Jlrrctur general that the I'M
portance oi the relationship OF rates
and rate adjustments have largely dls,
appeared ior the period of the war and
h. further plea that extraordinarily
high rates on lumber do not work q
hardship on the industry because OF the
abnormal rnces hcInG received Tor the
product
Challenging The contcntmns Of the dl-
rector general Commissioner Aitchlson
says
Indeed the more abnormal other
conditions the greater would seem tn be
ID, need tor unswervlng hdchtN to the
tandards II lusticcs and rcsonahlcncss
r transportation charges as tetwecn
competing persons, localities and com
moal n~
IA commenting further on the position
t.kcu hN the Director General, thc opin-
lau say
Nothing ~ the record indicates that
Fl ). necessary that the complslnsnts
must III deprived a Just and reasonable
rates ani rafo relationship IN order 90
.Ic,tuaic .tu, ST hr purposes 81 Federal
control NJ more han Is necessary should
war conditions hr permitted to dcprv
In, individual 81 lorAlltN 1T that equality
81 opportunity il respect to transportation
Winch i assured alike hV cur fundamental
economic policy and ~ the law
The oasr iccidci YESTERDAY WAS begun
before the assumption NJ Federal contro!
ai Tho principal systems oi railroad trans
roriatIou The complaint VIA brought hN
,irNcu corporations engaged Pa tho
tuanu acturc II lumber snd forest products
tu the Humboldt Rav district ~ ait
lorna, On thc ground th,t the rates from
therp voro discriminatory against moet
Il IA competing lumber eu "a the
larger raast group outside hsi district
Mhle the case VS. peudIug, bur he
lore ID ,au,c on iar argument, President
Nilsson. approximately . ear aga issued
lis proclamation taking over control
GENERALLY ~ tile rau~pori atIon system q
he country neiuding IL roai- ot M
uflucIual defendants tu tins eHsc. I ndcT
thr PROVISION, " the cdcra Control act
- March y lal~ former Director C'cnerI
NcAdao initiated a general increase N
irclCht and paS-engef r,ft> ou roads under
rdcral control totak, fleet June - 1915
y 81 uuhcr ,ul articles taking the
4me rate ..-, other iarc~' products
.te, ou which AZ, uet higher than lumber,
D, N Adea Iuer,a~t amounted - - pcr
mt, bu' not 1t exceed five cents per 100
.buuds HE effect u ms order was 20 ~
crease 4uformN bv hvC cents the rate
rom the california coas' group and from
3, Humba.at BaN poInts ~ Eastern de-
a territories After tho Government
1eeitiuta II, railroad control business q
supplemental compliant was hicd u the
ea-, naming thr Director Genera oi
Railroad, - i party defendant.