Arizona republican., 1920-11-19
DECISION WILL
 AFFECT HALF IF STATES IN UNION
Dissenting Opinion Says Commission Exceeded Authority = New Intra- state Rates Effective By Dec. IS
TaepubIIean A. P. Leased WIreI


 WASHINGTON. Nov. 1s.-In it's first decision on the right of the federal government under the transportation act to require railroad rates within s state to correspond to the higher leveis of interstate tariffs, the inserstate commerce commission today ordered the railroads of New York to esfab fish passenger and baggage rates cn intrastate traffic conforming to 4d vanced interstate schedules Similar proceedings are pending affecting more than half the states in the union.
 By its order of last August the com mission authorized in the New York region an increase of 40 per cent ir | freight rates, 20 per cent in passenger rates, excess baggage charges and rates on milk and cream. and also surcharge of 50 per cent on Pullmaaa accommodations. The New York pub l lie service commission granted the | freight advance except milk. but de nied the other increases within the state and the carriers appealed to tho | interstate commerce commission l. C. c. Gives Reasons for Decision The federal body held that there was a general obligation resting upon it ''to exercise control over intrastate commerce so far as it affects interstate commerce.
 'The decisive factor" the ruling said, ''is whether the rates under consider ation injuriously affect interstate com merce.'
 Congress directed that rates be al lowed which would yield an aggregate return of from 51s to per cent on the value of the railway properties. the commission stated, adding:
 There can be no doubt of the power ] of congress to devise and provide for carrying into effect a plan for as suring the nations interstate railroads a fair return upon the value of their property and the full control of con gress in this matter is not to be denied on the ground that the carriers aggre- gate earnings are a commingling of intrastate revenue and interstate rev , enue
 "The record shows that the refusal of the state of New York to permit the carriers to increase the rates and fares there in controversy to the eN- tent approved by us is costing the rail- roads between $11,000,000 and $l2s00O.- , 900 annually In other words the an nual earnings of the interstate carriers operating in New York are now be-
 tween S11, 0,0oO and $12,000,000 less , than they would be if the general level of rates and fares approved by us had
 become effective in intrastate traffic;
 and to that extent the declared purpose
 of congress is defeated by prefer , entiaI basis of rates and fares main : tained by authority of the state of New |, York
 "It has not happened heretofore thai
 we have had occasion to make such , an extensive exercise of authority as
 is now contemplated and we could not
 be moved to do so, save by the mos'
 cogent reasons. Such reasons have been supplied by the situation II which the transportation interests oi
 the country were placed and the ac- 1; ton taken by congress to relieve thai situation"
 u A dissenting opinion was handed
 down by Commissioner Eastman, who contended that the decision of the ma ioritv was beyond the lawful power of the commission
 "The objection is more than tech Q nical." he declared, flor it concerns th' n basic relations between the state ane Q the federal government, matter O. great moment"
 Orders issued by the commission re S uuired the new rates to become effec o1 tive by Dec. IS, on the filing of ftv' = days notice to the commission and th' - Dublic Increases on commutat1ol
 fares and charges on excess baggag' ' carried in connection with such fare e was excepted from the general ordel e and reserved for future decision by th' a commission.