Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-01-20
STATE CONTROLS
INTERSTATE RATE
Judge Mcclure Hands Down
Decision of Great Interest
4 to the Government

Federal operation of railroads
does not mean that they are with
drawn from control of State Com
missions in regard to rates accord
ing to Public Service Commissioners
Harold E. Mcclure, who has over
ruled the motion to dismiss COM
plants of the Pittsburgh Steel Com
pany, of Pittsburgh. against the
Manongahela Railway Company, and
the Pittsburgh and Lake Erie Rail-
road Company. The cases are order
ed put down for hearing after an
exhaustive review of the situation.
Concerning the contention that
the cases should be dismissed on the
ground that the United States gov
ernment was operating the railroads
Judge Mcclure says "the rates at
tackedsare for intrastate transporta-
ton, and in times of peace their
regulation is within the Jurisdiction
of the state, and this commission to
whom its authority has been dele
gated. The federal statute to regu-
late commerce contemplated no in
reference herewith" He also says
that while the president may initiate
rates subject to review by the Inter-
commission in determining the rea-
sonableness of the rates must take
into consideration the finding by the
president that more revenue Is neces-
sary to meet the expenses of federal
control In addition to a proper re-
turn to the owners, the needs of the
government for money to operate the
roads must now be taken as a fac
tor. But there Is nothing in the act
which in terms makes this provision
apply to intrastate rates. Only by
express terms and in unequivocal
language would such important pow
ers be attempted to be transferred
from state to federal Jurisdiction.
After quoting the federal railroad
act Judge Mcclure says I'VE do not
see how 1t could be made any clearer
that the railroads and transporta-
ton systems willis under federal
control were not only to be subject
to all laws and liabilities as COM
mon carriers under state laws as
provided in section ten, but that
nothing in the statute should be con-
strued to amend or repeal said laws
or impair or affect the lawful police
regulations Of the states, save in the
excepted cases where such laws,
powers or regulations may affect the
transportation of troops. war ma
terials. government supplies or the
issue of stocks and bonds"
In an opinion filed by Commission
er NJ. J. Ryan, in which reference is
made to Judge McClure's decision.
the Central Railroad of New Jersey
| is ordered to strike off q tariff of
July rs for hauling coal, which was
complained of by the New Jersey
Zince Company. Mr.. Ryan says
| that the state commission has au-
thority to regulate intrastate rates
and that the striking down of un-
lawful tariffs and the vindication by
| enforcement of our adjudications
under the public service company
| law Is our duty" In this case the
railroad present the fact that II
was under federal control and de-
clared that the rates were initiated
by the United States government.
| In the name of the Edinboro State
Normal School VS.. the Erie, Pitts.
burgh and Lake Erie and other rail.
roads, the commission issues an or.
der that the director general of rail.
roads and the railroads interested
show cause why rates established fol
coal hauls from the Pittsburgh dis.
trict to Edinboro by the commission
prior to the railroads being takeT
over by the government should moi
be regarded as the base rate.