Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-11-19
DECISION HITS
HALF Of STATES
CASES PENDING
Ruling Is Rendered in
New York Appeal From
Advances Granted.
Necessary to Give Roads
Return Guaranteed by
Congress, Claim Made.

Washington, Nov. 18.-In its
first decision on the right of the
federal government under the
transportation act to require
railroad rates within a state to
correspond to the higher levels
of interstate tariffs, the inter-
state commerce commission
Thursday ordered the railroads
Of New York to establish pas
senger and baggage rates on
intrastate traffic conforming to
advanced interstate schedules.
Similar proceedings are pending
affecting more than half the
states in the union.
By order of last August the commits
sion authorized in the New York region
an increase of 40 per cent in freight
rates. 20 per cent in passenger rates,
except baggage charges, and rates on
milk and cream and also surcharge Of
5O per cent on Pullman accommodations.
The New York public service commits
sion granted the freight advance except
on milk, but denied the other increases
within the state, and the carriers .appaal-
ed to the interstate commerce commits
sion.
is General Obligation.
The federal body held that there was
a general obligation resting upon it to
exercise control over intrastate com
neree so far as it affects interstate
commerce"
The decisive factor" the ruling said.
is whether the rates under considera-
ton inJuriously affect Interstate COM
merce."
Congress directed that rates be al
lowed which would yield an aggregate
return OF from to 6 per cent on the
commission stated, adding:
There can be no doubt of the mower
of congress to devise and provide for
carrying into effect a plan for assuring
tne nations interstate railroads a fair
return upon the value of their property
and the full control of congress in this
matter is not to be denied on the ground
that the carriers aggregate earnings are
a commingling of intrastate revenue and
interstate revenue.
Costs sI7.ooo.ooo Year.
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 extent ap-
proved By US is costing the railroads
between $11 100000 and S12 100000 an
nuaily. In other words, the annual
earnings Of the interstate carriers oper-
S11 100000 and S12.OOO.OOO less than
they would be if the general level of
rates and fares approved by us had be-
come effective on intrastate traffic:
and to that extent the declared purpose
OF congress Is defeated by a preferential
basis of rates and fares maintained by
authority of the state of New York.
1T has not happened heretofore that
we have had occasion to make such an
extensive exercise of our authority as
is now contemplated, and we could be
reasons
Reasons Supplied Here.
Such reasons have been supplied by
the situation in which the transportation
interests of the country were placed and
the action taken by congress to relieve
that situation"
by Commissioner Eastman who con-
tended that the decision Of the majority
was beyond the lawful power of the
commission.
''rhe objection is more than techni-
cal,'' he declared. for it concerns the
basic relations between the state and
the federal government, matter Of
Orders issued by the commission re-
quired the new rates to become effective
by December 1S on the filing of five
days notice to the commission and the
public. Increases on communication fares
cS
in connection with such fares was ex-
pected from the general order and re-
served for future decision by the com.
mission