The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-10
Judge COtteraI Won't EnjOin
New Intrastate Schedule.
Temporary Restraining Order
Is Dissolved by Court.
NOT ENOUGH EVIDENCE GIVEN
Relief Must Come From l. C. c.,
Says Decision.
Refused to Accept Commits
siOn's "Yard Stick" Rates.

Judge Cotteral today refused to en-
join operation of new intrastate
freight rates. In the same order he
dissolved the temporary restraining
order issued a week ago. The state
public utilities commission lost on eY-
cry issue. The federal judge refused
to accept the commissions demand
for yard stick" rates. He quoted the
telegram which Chairman McCord OF
the interstate commerce commission
sent to Chairman Clyde M. Reed OF
the public utilities commission as au-
thority that there was no justification
in the demand for an injunction, and
that this fact was known by the state
commission when it entered the near
ing this week.
Decision in the rate injunction case
was rendered this morning immediate
" after conclusion of arguments.
Judge Cotteral did not leave the bench
before deciding the case. He said fix-
ing of mileage freight rates was i'm
possible and that the states position
was impractical. He declared there
was INSULT cient proof to show the rail-
roads had exceeded bounds prescribed
by the I. c. c., altho the judge salo
he did not feel called upon to go so
thoroly into the merits of the case at
this time.
Relief which the state may seek
Judge CotteraI held, must come from
the interstate commerce comnlsslo loil' ~
He said there was no question as u
newer Of the / c. c. in the case
particularly in view of Judge Hem .
concession of its authority for the puF-
nose Of presenting this case. In view
Of impra ctica bility of the states posi-
tion. Judge Cotteral said he hardy
felt ii necessary to decide whether the
carriers of this state have kept WITHIN
"rhers is insufficient proof" the
federal Judge said. ito show that the
--efy-oads exceeded the bounds fixed
by the interstate commerce conntlis-
sion" ....
TOOL, Up Reed-McCord Messages.
Then Judge Cotteral took up the
Reed -McCord messages. Quoting from
the McCord telegram, the judge waived
aside all argument as to the probaple
things which the federal commission
had in mind when 1t fixed the rate @
order. Chairman Reed of the state
commission had wired the interstate
commerce commission chairman ask
ing that the new intrastate tariffs be
set aside on the basis of discrlmlna-
ton It was pointed out in the de-
cision1 today that this telegram was
sent by Chairman Reed just one day
~
straining order in the federal court
The day after application was
made. the McCord answer came to
Reed. When the restraining order
was granted by udge Cotteral, an
nouncement was made that the state
had won big rate victory which
would save millions of dollars to KAN
sas shippers But Judge Cotteral point
ed out today that the McCord tele-
gram precluded further consideration
of the injunction proceedings ana
clearly expressed the views and pur-
poses Of the interstate commerce COM
mission.
Deny Temporary Injunction.
1.-THE AIcCord wire can only be re-
Earded as an Interpretation as to what
the order means and particularly when
it is stated that the commission could
find no discrimination" said Judge
Cotteral. "Also it carries to the state
commission an offer to go into any
matter on n proper showing and to
take appropriate action. The plain
tiff should pursue this matter before
the interstate commerce commission
before this court is asked to act The
temporary injunction will be denied
Likewise the restraining order will be
vacated, but without prejudice to the
plaintiff on renewal of an application
after a hearing before the interstate
commerce commission
In the intrastate freight rate case
testimony was offered by the state tc
show that distance rates on interstate
hauls were lower than intrastate rates
for similar distances. 1t was urged
that this situation resulted in dis
elimination against intrastate ship
pers Tt was claimed that some TO-
900 such determinations existed. The
court was asked to enjoin enforcement
of the increased rate where these dis
examinations existed. That was the
meat of the issue.
Determinations Do Not Exist.
Experts for the railroads contende ed
that determinations did not exist
They asserted that the yard stick
rule of rate making was impractical
and impossible.
That is the very thing the plain
tiffs in this case do not want" said ]
NJ. Souby of Omaha, assistant com
merce counsel for the Union Pacific
who presented the railroads argu
ments today. IF applied they would
limit industrial activities to the scop.
of miles in which competition was re
Glover''-appearing for the cemen
interests as expert for the state
does not want"
In his arguments for the state Judg,
Helm contended that the interstat,
commerce commission had recognized
similar conditions affecting transpor
tation in Kansas, Nebras ska, MisSour
and Oklahoma and that any differenc,
in rates-as applied on the mileage
basis-affected discrimination. Rici
Lincoln of st. Louis, general freigh
agent for the Missouri Pacific. con
tended with Judge Helm during tn,
greater portion of his argument. H
said a system of freight rates such a
was urged would be impossible. ''
couldn't expect to live long enough 4