New-York tribune., 1922-02-28
Supreme Court
L pholds Raise
In y. \. Fares
Right of States 10 Oppose
Commerce Commission in
Fixing Uniform Rates for
I. s. Denied in Two Gases
End of Two-Cent Mileage
Taft Says Control of Inter
state Trade by Congress
Does Not Invade Authority
Tse 7r'asve's uo,h.nrtou Burcou

WASHINGTON. Feb. 27.-In two de-
cisions to day. one in the Wisconsin
case and the other in tho New York
case tho supreme Court Of the United
States in oninions by Chief Justice
TAFT, upholds the Interstate Commerce
Commission in the issue o. orders re
quiring the state railroad and public
service commissions to raise ntrastate
railroad rates so as to conform TO the
level Of interstate rates Decisions of
the lower courts in both instances arc
sustained.
The effect Of the decisions g to give
the Interstate Commerce Commission
sweeping authority to regulate rates
within the borders or the states when
ever the commission concludes these
rates constitute an undue and uurea-
sonablc discrimination against inter
state commerce. The Andins OF the
Supreme Court as generally viewed
here Is body blow al the state com
missions ard marks & tremendous step
in the direction Of unified control and
regulation OF the railroads by the Fed
eral authority
The ruling Of the court to-day brings
out INTO the full light the Importance
to the railroads Of Section ia Of the
Cummlns tsch transportation act. This
is the section Of tho new transporter
tion law Of 1920. which requires the In
tcrstate Commerce Commission so to
adjust rates that the revenue OF the
carriers shall enable them as whole
or by groups, TO earn q fixed net in
conc ON their property for the pres
ent the law tiNes tnat net income at
an aggregate Of 6 per cent
BY the dec .sions in the Wisconsin
and New York cases the court holds
that tho Interstate Commerce Commis-
sion can deal with intrasate rates when
it finds they are Interfering unreasor-
ably with the not income Of The roads
as contemplated under the transporta-
tion act.
May Go TO Congress
A large majority Of the state rail
road and u.ility commissions united
in the Wisconsin case to overcome the
construction Of the law as insisted on
By the interstate Commerce Commits
sion. The finding Of the court means
that a strong movement viii al once be
pressed TO obtain legislation at the
hands of Congress which VIII check
the power Of the Interstate Commerce
Commission and restore the power Of
the state commissions as we'll as re
peal Section Ia
Bills to that end arc already pend
ing before the Interstate Commerce
Committees OF both houses and have
been pending there for many months.
The New York case is that Of the
State Of New York and Charles d. New
ton, personally and as Attorney Gen
eral Of The state of New York, appel
liant. VS.. the Interstate Commerce Com
mission ard interNenors, Lenigh Valley
e al, railways in the State of New
York. The state sought to eujoiu an
Interstate Commerce Commission ordor
requiring increased passenger, baggage
and sieeping car rates and d 20 per
cent increase in milk rates. Yho dis
trlct court for the Northern New York
District dismissed the bin and this
appeal was taken accordingly
The New York Public Service Com.
mission. tho record shows. had in
creased freight rates 30 per cent 10
correspond TO interstate increases. bus
uenled tho Increase as to passenger
1ares and milk rates. The passenger
Interstate fares were cents per mile
under order Of he President IN wal
control. bat The state had passed il
cent 1are rate on the New York Cen
ira from Boston to Albany. to be ef
tectivc when war control ceased
Evidence was adduced TO show thi
INJURY to interstate business in tn,
transportation of milk from tn,
country TO New ork City from point
o0tsldo OF the state IN competition
with lntrastate traffic in milk.
The New York case differs from til.
Wisconsin case in that it is direc
proceeding to annul the Interstat,
commerce Commission order
! Contracts Disregarded
| The court refuses to sustain the OH
| Jccton raised by the state that 1t ha
charter contract with t.e Now Yor'
central by which the latter is boun,
not to cnaree more thaN two cents be
tween bany and Buffalo and that
vac ahsPor'atlon act permits the IN
t"Fsiate Commerce Commission H. =
order 20 enable the railroad compar
70 Nio' ate lis contract ii is uncousti
t"ilona. The court sails back on tn
ruling IN the Addvstone Pine case an
| aal anything which directly obstruct
! comm cree among tie states should b
Ten1ect to '.e power Of Congress.
nc evidence III this case" prc
| cccds The court. shows that it IN
! passenger aud other rates here in cor
,roVersy were to continue in force p
ruled by TIE fubhc Service Commits
S'oa o. New York the annual qros
reverNes of the interstate railroads or
Grating in the State Of New York fror
bota interstate and intrastatc passer
ger AND milk business would be less b
nearly twelve millions OF dollars tina
those revenues Z the intrastate fare
and rates We're on the same level as II
interstate rates as NNed by TIC Inter
state Commerce Coz. ..lisSion
As we have Just held in the Wis
consiH case. this constitutes undue
unreasons Die and unjust discrimina
ton against interstate commerce
which is declared 10 be unlawful an
prohlbated by Section II. Paragraph
o. the interstate commerce act a
amended by Section 4l6 Of the trans
porta,ion act Of 1920. = stat 456, asa
and which lie Interstate Commerc
Commission is AUTHORIZED therein t
remove by fxing interstate rates TO
The purpose.
| pholds Land Bank Charge.