The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1920-10-08
commerce BODY
DlN|ED APPLICATION

At . regular meeting OF the rubiic
Service Commission of Nes Ada. oa tn.
nth Of September the application Of
the railroad companies for n horizontal
Increase in intra-state rates which WAS
MAS heard by the Commission ON the
ID and 18th OF August. was denied.
A similar case had been heard by the
Interstate Commission which gave
substantial increases In inter state
freight rates and passenger fares. and
he railroad asked this Commission to
grant the same increases in Interstate
business. The opinion WAS written by
Chairman J. y. Shsughnessy an unan-
imousiy adopted by the Commission.
At the hearing the railroad took the
position that under the New Trans
portation Act. the decision of the In
ter-State Commerce Commission was
final and that without regard to the
reasonabiness of the rates and well
fare of Nevada. the State Commission
should order the same horizontal in
crease In rates as those authorized by
Federal Commission. Under the Trans
portation Act of 1920. Congress has
authorized the Interstate Commission
to establiih rates which will produce
a net return of per cent to the rail-
roads and It's decision has been made
with the purpose In view. insofar as
intestate rates are concerned. The
carriers contended that the state have
been stripped of their rate making
power and refused to introduce any
testimony other than a copy Of the
federla commissions order, In support
Of their application to increas state
rates.
The opinion of the Nevada Commits.
sion points out that II the contention
J of the carriers Is correct. this decision
Is a long step toward the complets
surpaton Of state government which
followed to 1t logical conclusion would
place In the hands Of the fedora
government full control of all bust
ness and deprive the state of all sub
federal constitution gives to the gen
eral government control of commerc,
among the several state or. as Is Il
commonly termed. interstate commerce
! On the other hand. all rights not speci
fcally granted to the National govern
ment by the Constitution are reserve,
, to the several states, and to the people
: IL the argument Of the carriers in thi
: case adopt. the Interstate Commerc
: Commission hasuruped the authority O
d the states and delegated 1t Is a larg
. measure to the railroad companies =
: Ithe sailroads are, In fact. superior
: authority to the Legislature of tn
people.
IS 1t Is generalrule of the law ths
S make its provisions unconstitutiona
when any other Interpretation ca
" reasonably be made and it is the belle
n OF the Nevada Commission that tn
IS Congress did not anticipate any sue
l. result as the railroad claim. nor is
y belived that the Interstate Commert
If Commission in promulgating it's ordt
IS attempted or intended to vest any sue
authority in the common carriers.
any event the Public Service Con
mission of Nevada takes the positio
that the decision of the Interstai
Commerce Commission deals only wit
U interstate commerce and does depri,
" 1t the power granted by the Legi
lature to regulate State Commerce
The decision ofthe Interstate Cor
merce commission is based upon Il
Vi revenue and operating expense Of Il
- fcarriers for the year ended October
VI 1919, which the Nevada Commissi
u. quite clearly proves was not repre-
e. entative earning period. Further, t
ha opinion of the State Commission sho'
oi that a large part of the operating q
- pense was caused by transportation
~ the government of troops and mui
~ tions of war at free and half rates, a
- that these expenses are not proper
e'e chargeable against the income Of
railroad because they are war chars
..s against all property. the same as
the army and navy.
u 1t is also shown that during the gs
er- ernment control, the same railrc
IN men We're, in some instances, in
re- charge Of transportation operations
u before the war and at the present ii
ne and therefore, the trunk line manag
7h. are not free from their share of the
tions and service which is being CHI
Ae- ged against the government mana
ee- ment.
ate The opinion also points out the
hai feet of the so-called out law stri
70 that caused great loss to the railr,
'oh and the public. creating cong
at tion and car shortage which has not
as- yet been overcome and replacing
skilled yardmen with the in-exr
al fenced help and that the attempt
of now being made to charge their los.
ple the public. The railways are accu
! of SO increasing the weight Of their
fifths Of the railroads work is
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