The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-06-03
Decision Declares War Pow
er Granted by Congress
Gave Burleson Sweeping
Control.
LITIGATION IN 40
STATES AFFECTED
Questions AS to Railroads
and Wire Lines Were De-
cided Separately With
Opinion by Chief Justice.

Washington, June Increased Fdll-
road, telephone and telegraph rates
G-dered by the railroad administra-
ton and postmaster general were sus-
tanned by the Supreme court which
held war power conferred by congress
upon the president, included sweeping
control over railroad and wire systems
with supreme and conclusive authori-
ty TO fix intrastate rates.
These questions were decided in two
opinions rendered by Chief Justice
White, one relative to railroad rates,
being unanimous. while Justice Bran
deis dissented in the telephone and
telegraph decision, but without render
ing a separate decision.
The opinion affects litigations which
have been instituted in about forty
states and which involved the validity
of both rate orders.
Authority of the postmaster general
to increase intrastate telephone and
telegraph rates as decided today by
the Supreme court was involved in
proceedings brought from South Da
kota, Massachusetts, Kansas and Illi-
nois and argued here on May and 6.
All grew out of Mr.. Burlesons order
placed in effect on January 21 last
under authority of the joint resolution
by which the government acquired
control of the wire systems, the in
creased telephone intrastate toll rates
with the exception of the Illinois case
which involved increased telegraph
rates only.
Arguments of the cases in the Su-
preme court attracted wide attention
and attorneys general from a score of
states were present while briefs as
amici curiae were filed by the Ma
-
Public Utilities commissioners, repre-
senting thirty seven states as well as
by the states of Wisconsin, Pennsyl-
vania and Ohio and also by the Pro-
tective Telephone Association of Bal
timore, Md
The South Dakota case resulted
from injunctions granted by the State
Supreme court restraining the Da-
kota Central Telephone company as
we'll as three other companies in that
state from charging rates promulgated
by Mr.. Burleson. The proceedings
were instituted by the state authori-
ties and the state court in granting
the injunctions held that the rates
were illegal as they had not been ap
proved by the state board of railroad
commissioners.
In arguing these case attorneys
the SldlSS COA ECU that
congress had no intention OF granting
the government power to fix intrastate
rates, that Mr. Burleson had exceed
ed his authority in doing so and if the
joint resolution was interpreted as
granting this power it was unconstitu-
tional. They also contended the in
terstate commerce commission has
power to determine telephone rates
but 1t has never exercised it, which
they claimed was in effect recognition
by it OF the states right to control
wire tariffs.
In answering these contentious, So
licitor General King asserted the joint
resolution unquestionably conferred
upon the president, and by him dele
gated to Mr.. Burleson, power to fix
all wire rates. that although these rates
had been initiated after the armistice
was signed, they had been made neces-
sary to meet increased operating ex-
penses which if not paid by the pub
lie, would have fallen upon the federal
treasury. The Solicitor General also
accused the states of bringing these
proceedings to interfere with govern
ment operation of the wire facilities
and asked for the dismissal of the salts
on the grounds that they were brought
against the government without its
consent
Today's opinion was regarded as
being of sweeping Importance in view
of the fact that suits involving sim
liar questions have been instituted in
about twenty-five states with the re-
suit that in South Dakota, Florida
Indiana, Illinois, Minnesota, Missouri,
Nebraska, Ohio. Pennsylvania, New
York and Michigan decisions against
the government have been rendered in
the state courts. while in the federal
court in Florida. Indiana. New Jer-
sey. Wisconsin and North Dakota as
well as i nthe state court of Alabama,
Louisiana. Massachusetts and Oklaho-
ma. the right of the postmaster gem
eral to fix rates has been sustained.
In addition, litigations have also been
instituted in other states among tsem
being Kansas, Georgia, Mississippi,
Texas and California.