The sun., 1919-06-03
RATE RAISES UPHELD
BY SUPREME COURT
Sweeping Control Vested in
President by Congress.

WASHINGTON, June Increased rail-
road. telephone and telegraph rates or
dered by the Railroad Administration
and by the Postma ster- General, re-
spectively were sustained to-day by the
Supreme Court. which held that the war
powers conferred by Congress upon the
President included sweeping control over
the railroad and wire systems with SUI
preme and conclusive" authority to Ak
intrasta rates.
These questions were decided in two
opinions rendered by Chief Justice White,
| the one relative to the railroad rates
being unanimous, while Justice Brandeis
dissented In the telephone ard telegraph
decision, but without rendering a sepa-
rate opinion The opinions AFFECT litiga-
tons which have been Instituted in about
forty States and which involved the
validity of both rate orders.
| AS a result OF the courts opinion in
functions restraining the Dtector-Gen-
eral of Railroads from enforcing an or
der increasing freight and passenger
| rates in North Dakota were dissolved.
The court also upheld the dismissal of
proceedings begun by Massachusetts,
State authorities to prevent intrastate
! telephone rates in that State being in
creased and set aside injunctions pre-
venting an advance of telephone rates in
South Dakota and telegraph rates in Illi-
nois
In addition the court also dismissed
an original suit by the State OF Kansas
| against the Postmaster General seeking
| to have the rates prescribed by him in
| that State declared unreasonable and to
prevent them from being made effective.
Holds Powers Are Ample.
In deciding the cases the court held
that the resolutions under which the
| Government took over control of these
utilities together with the PRESIDENT
proclamations and the railroad control
act gave the United States complete
possession and control under the war
powers and that Congress had a right to
confer these powers upon the President.
Upon the face of the statutes" Chief
Justice White said In deciding the rail-
road case 1T 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
right to exert such authority was 70
cease upon the wars termination. To
interpret. therefore the exercise OF the
power BY a presumption of the con-
ltnuance of a State power limiting and
controlling the national authority was
but to deny its existence"
SLUG EIGHT -. ...,.... 49,.
| Although II may be conceded" tie
Chief Justice said in the telephone ca Sc
that there IS some ground for contend
ing, in view OF the elements of authority
Il enumerated in the resolution OF Con-
/ gress that there was power given to
take less than the whole II the Presiden,
deemed IT best to do so. we are of the
opinion that authority was conferred as
to all the enumerated elements and, that
there was hence a right in the Presi-
, dent to take complete possession and
control TO enable the full operation OF
the lines embraced in the authority"
May he Guide for Congress.
Members OF Congress regarded to-
days opinions with interest and de
: clared the courts views would aid then
, greatly in formulating wire and rail
road legislation.
The Senate Interstate Commerce Com
mittee met to-day to consider the reso
, luton of Senator Kellogg tMinn.) pro
vidlng for the repeal of the act under
which the wires were taken over and foi
return Of the properties to private own
ership on June 80. The committee ex
/ poets to report favorably tomorrow s
measure providing for the turning baci
Of the wire systems