Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-02-28
4. C. C. power
TO FIX RATES is
UPHELD by TIVE
SUPREMIE COURT
Board Has the Authority
Under the Transportation
Act of 1920 to Set State
Passenger Fares.
ALL JUDGES CONCUR
IN TAFT'S OPINION
Decision "DoeS Not Involve
General Regulation of In
traState Commerce." Is
Tribunals Claim.
tBy The Assnclnted press.l

Washington, Feb. 27.-Decl1r-
ing that commerce is a unit and
does not regard state lines" the
supreme court today through
Chief Justice Taft and without
dissent, handed down a decision
upholding the authority of the
interstate commerce commission
under the transportation act OF
1920 to fix state railroad pass
cnger fares when necessary to re-
move undue, unreasonable and
unjust discrimination against in
terstate commerce"
Two Cases Presented.
Two cases were presented to
the court. One was brought by
the railroad commission of Wis
consin and others against the Chi
cago, Burlington and Quincy rail-
road, seeking an injunction to
prevent the roads of the state
from putting into effect on state
passenger traffic the rate of $40
cents per mile allowed by the
government on interstate travel
The other was brought by the
state of New York against the
federal government, the inter-
state commerce commission and
certain railroads of that state, on
the ground that the three cent
fare fixed by the public utility
commission produced reasonable
returns to the railroads upon
their state traffic. In both states
freight rates had been advanced
to the interstate level without OBJ
lection from the states
Congress in its control of its
interstate commerce system is
seeking in the transportation act
to make the system adequate to
the needs Of the country by re-
curing for 1t reasonable COM
pensatory return for all the work
it does" the chief justice stated
in the opinion. THE states are
seeking to use that same system
for intrastate traffic. That en-
tails large duties and expendi-
lures on the interstate commerce
system which may burden 1t IN
less compensation is received for
the intrastate business reasonably
proportionate to that for the in
terstate business. Congress, as
the dominant controller of inter
state commerce. may therefore
restrain undue limitation of the
earning power of the interstate
commerce system, in doing state
work.
ut can impose any reasonable
condition on a states use of in-
terstate carriers for intrastate
commerce it deems necessary or
desirable. This is because of the
supremacy of the national pow
er in this field"
Referring to the question that
the conclusion Of the court would
give the Interstate Commerce
commission unified control OF
interstate and intrastate COM
merce," the court declared that
such control was unified only to
the extent of maintaining eff
clent regulation of interstate COM
merce under the paramount
power of congress" The decision
of the court docs not involve gem
eral regulation of intrastate COM
merce," it added.
Appropriate Discretion.
It suggested that "the action Of
the Interstate Commerce commits
sion in this regard should be di-
rected to substantial disparity
which operates as real discrimi-
nation against, and obstruction to,
interstate commerce, and must
leave appropriate discretion to the
state authorities to deal with inter-
state rates as between themselves
on the general level which the
Interstate Commerce commission
Continued on Page Two.I