The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-08-20


the time (September u when the
regulations pertaining under Govern
ment operation cease to be effective
of getting the "bulge" on the State
railroad commissions and make the
new rates apply not only to inter
state but to intrastate freight and
passenger traffic.
See Conflict With State Laws
In most States there are laws and
commissions which regulate freight
and passenger rates within State
line boundaries. These laws were set
aside as a war measure when the
roads were taken over by the Gov
ernment and rates made by the Ma
tional Railroad Administration ap-
piled uniformly throughout the coun-
try. September l State railroad laws
will again become operative. These
rates are in most instances consid-
erably below those fixed for inter-
state traffic by the Interstate Com
merce Commission. These State rates
were fixed before the war, whereas
the new rates awarded under the
Cummins-Esch bill are an increase
over rates fixed by the Government,
which are from 25 to 80 per cent
above the pre-war rates.
Having put the new rates into eff
feet it will be necessary for the
States to begin legal proceedings in
order to re-establish intrastate rates.
In several States laws have been
passed fixing the passenger rates at
II cents per mile.
Raises Question as to |. c. c. Power
During and since Government op-
GRAFTON cents per mile has been the
minimum. Therefore, any change in
interstate rates will necessitate ex-
tensive and involved legislation. State
governments will either have to re-
peal the law fixing rates or else
pass new laws if the schedule which
becomes operative August 26 is to be
sustained throughout the entire ma
tional transportation system. The
basis upon which the Interstate Com
merce Commission has hitherto inter
fered in the fixing of intrastate rates
is their power under the law to
change such rates when found to be
discriminatory. There is still some
question as to how extensive this
power is, but it is expected that it
will be definitely settled in the cases
which will arise in connection with
the contemplated raise by the rail
roads of intrastate rates.
That strong opposition will be reg
istered against the present plan of
railroad management to override
State tariffs is evidenced in a state
ment issued this week by Commits
sioner Barrett of the New York Pub
lie Service Commission, in which he
said
"To set at rest any doubt, l desire
to say emphatically that the order
of the Interstate Commerce Commits
sion will have no effect whatever
upon the jurisdiction of the Public
Service Commission of New York
State over both freight and passen-
ger rates within the State boundar-
ies."
In addition to the increased freight
and passenger rates it is estimated
that the public will be called upon
to pay at least $100,000,000 annually
in additional war taxes upon the ad-
vance in transportation rates allowed
the railroads.
Grain Shippers Demand 100000 Cars
More serviceable distribution of
cars is demanded by grain growers
of the Northwest, in order to handle
700,000,000 bushels of this years
crop now being harvested. O. P. B.
Jacobson, of the Minnesota Railway
and Warehouse Commission, and J. j.
Murphy, State Railway Commission
er for South Dakota, were in Wash
ington this week to tell the Inter
state Commerce Commission their
troubles with the railroads. They
asserted that agricultural interests in
the Northwest face bankruptcy
through failure of the railroads to
function. 1t was asserted that rail
roads of the Northwest had only
S5 per cent of their box cars on their
lines. AS a remedy for the situation
it was urged that the Commission
order box cars from territories in
the East which have more than 100
per cent of their ownership and dis
tribute the cars to Northwestern
grain shippers.
TRY "RJ HE RIRRONo Cioars 6c