White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1920-08-22
RATES QUESTION may
CAUSE M|x.UP As TO
STATUS OF AUTHORITY

Charles s. Chandler and Frank
Roper returned Thursday morning
from Carson City, where they spent
TWO days before the Public Service
Commission of Nevada in the inter
est of the Nevada Northern Railway
company at the hearing of the ap-
plication of all of the railroads of
Nevada for increased rates on in
trastate business TO correspond with
the increases recently allowed by the
Interstate Commerce Commission on
interstate business.
It was the position OF the carriers
" at this hearing that under the pro-
visions of the Esch-Cummins Act 1t
was the duty of the state commission
10 grant the increases allowed by
the Interstate Commerce Commission
without separately considering each
individual rate ON its merits. This
contention was based on the fact
that the Interstate Commerce COM
mission, in granting the increases on
interstate business. was merely act
ing in accordance with the mandate
of the Esch-Cummins Act, making
II the duty of the Interstate Com
merce Commission to divide the
railroads OF the country into group
systems and establish rates for each
group which would enable the car
II n vi n
earn six per cent on the value of
their railroad property and that II
was the judgment of the Interstate
Commerce Commission, after full
hearing. that the increases allowed
were necessary to accomplish that
purpose The carriers referred In
this connection to provision of The
Icsch- -Cummins Act authorizing the
Interstate Commerce Commission to
revise and fix rates which discrim-
mated in favor OF state traffic as
against Interstate traffic. In behalf
of the carriers II was stated that 1t
, was the intention OF the Interstate
Commerce Commission. as shown by
their opinion aud order. that the In
creasos should be allowed as
whole in order to meet the existing
emergency In transportation and
that any injustice or inequalities In
particular rates resulting should
thereafter be promptly adjusted
either by the state commissions or
BY the Interstate Commerce Commits
sion.
The State Commission on the oth-
or hand intimated its position TO be
that each individual rate should be
considered on it's merits and the in
crease on each individual allowed OF
disallowed In accordance with the
Judgment OF the State Commission.
and suggested doubt as to the con-
stitutionality of the provision OF the
Esoh- -Cummins Act In attempting TO
give the Interstate Commerce Com
mission authority over state rates
which Ii might deem discriminatory
against interstate commerce. No
definite decision was reached, how
ever, and the whole matter was
taken under advisement by the COM
mission. II Is expected that decis-
ion of the commission will be an
nounced promptly
There are indications OF an inter
esting conflict of authority between
the Interstate Commerce 1ommis-
sion and the State Commissions.
arising from the increases author
lied by the Interstate Commerce
Commission under the provisions OF
the Esch- -Cummins Act Action has
not been taken by all of the state
commissions. but press dispatches In
dicate that the commission for the
second district of New York has de-
clined TO allow the increases author
lied by the Interstate Commerce
Commission, while the New Jersey
and Florida commissions, and like
wise the commissions of California,
Oregon and Washington. have auth
orized the corresponding increases
20 be made in their respective states.
II is understood to be doubtful
wthether tho commissions of Mon
tana and Utah will permit the In
creases to be made as whole. The
situation may force the determine
ton by the courts OF the authority
of the Interstate Commerce Commits
sion under the Esch-Cummins Act
over state rates which may discrim-
mate against Interstate commerce.