The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-11-24
STATE POWER TO LEVY
RAILROAD RATE DENIED
Commission Orders Railroads in New York to Ad-
vance Traffic Charges
ONLY ONE DISSENTING OPINION
AMONG THE COMMISSIONERS
Interstate Commerce Commissioner Eastman
Contends This Is Up to the Intrastate Body

Wahb lngton, Nov. 1s.-In its first
decision ON the right Of tho federal
government under the transportation
set TO require railroad rates within a
state 10 correspond to the higher
levels OF Interstate tariffs. the inter-
State commerce commission today
ordered the railroads OF New York TO
establish passenger and baggage rates
ON intrastate traffic conforming TO ad-
vanced Interstate schedules. Similar
proceedings are pending affecting
more than half the states I'm the
union.
ny its order OF last August the COM
mission authorized IN the New York
region an Increase OF 40 per cent in
neight rates. 20 per cent In passenger
feres. excess baggage charges and
rates ON milk and cream. and also q
eorcharge OF 80 per cent on Pullman
accommodation. The New York pub
ltc service commission granted the
freight advance except milk, but de-
nIed the other Increases within the
state and the carriers appealed TO the
Interstate commerce commission,
The federal body held that there
was a general obligation resting upon
commercc 30 far IN IL affects inter-
STATE commerce"
The decisive factor" the ruling
nQid. "is whether the rates under con-
sideraf'"n injuriously affect interstate
commerce"
Congress directed that rates be al
lowed which would yield an aggregate
rsturn Of from five and one-half, to
six per cent fon the value OF the rail-
wey properties. the commission stated.
adding: rft. T.,
.-rhere can be no doubt of the pow
% Of congress TO devise and provide
for carrying into effect plan for
assuring the nations interstate rail-
roads n fair return upon The value
oc their property. and the full con-
troll OF congress In this matter is not
to be denied on the ground that the
rorriers' aggregate earnings are a
commingiiug OF intrastate revenue
and interstate revenue
The record shows that the refusal
Of the State Of New York to permit
the carriers to increase the rates and
fares here In controversy to the ex-
tent approved by us In costing the
railroads between I'll 100000 and
n2.oo0.ooo annually. In other words.
the annual earnings OF the interstate
earricis operating In New York are
now between sll.e0o.0oo and si2.-
100000 less than they would be IL
ths general level OF rates and fares
approved by US had become effective
on intrastate traffic; and to that ex-
tent the declared purpose OF congress
In defeated by a preferential basis OF
rates and fares maintained by author
ity OF the state OF New York.
A dissenting opinion was handed
down by missioner Eastman. who
contendcd that the decision OF the
majority was beyond the lawful pow
or OF the commission.
The objection is more than techni-
CAL" he declared. for II concerns the
basic relations between the state and
the federal government. matter OF
great moment"
Orders issued by the commission
required the new rates to become ef-
fective by December Is on the filing
OF hve days notice to the commission
and tho public. Increases on COM
mutation fares and charges on excess
haggage carried In connection with
such fares were excepted from the
general order and reserved for future
decision by the commission.