The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-28
Supreme Court Decides
/. c. C. Regulations
Must Prevail.
DECREE SETTLES
WISCONSIN CASE
Chief Justice .Upholds
Commissions Power
Under 1920 Act.

The supremacy of the Interstate
Commerce Commission over State
utilities commissions and similar
State bodies in matters pertaining
to the regulation of railroads has
been established by the decision of
Nthe United states Supreme Court in
the Wisconsin rate case
The court in "a unanimous de-
cision handed down yesterday, de-
cared that States cannot establish
freight or passenger rates which
interfere with interstate commerce,
and cannot establish rates within a
State which are discriminatory.
The spirit of the decision is con-
tanned in the declaration that com
merce is a unit and does not stop
at State lines"
Uphods Act of 1870.
The decision upholds the vital
feature of the transportation act of
la20, which provided broader Fed
eral control of carriers than here
tofore had been attempted 1t
greatly curtaiIs powers which had
been claimed by the State regula-
tory bodies, validates rates within
States which had been ordered into
effect by the commission, and prob
ably precludes action by the States
to fix passenger fares as in pre-
war days. when the 2cent fare
was generally mandatory.
AZ long-disputed problem is set
tied, because there has been con-
hict for years as to Just what rights
were exercised by the Federal gov
ernment as opposed to the States.
The State Of Wisconsin was Joined
IN Its suit by forty-two other
states. while the contentious of the
government before the court were
supported by the largest carriers,
Appealed from Injunction.
When the Interstate Commerce
Commission ordered higher rates
into effect under the act of 1920,
Wisconsin adhered to rates estab-
lished by the State. The commits
sion, after an investigation, ordered
rates within Wisconsin to be in
creased in amounts corresponding
TO the general fnorease. The COM
mission in its investigation found
undue. unreasonable and unjust
discrimination against persons tray-
cling in Interstate commerce and
AGAINST interstate commerce as a
whole"
But the State obtained an iniunc-
ton in district Federal court, from
which appeal was taken to the high
tribunal.
Chief Justice Reads Decision.
Chief Justice Taft, in reading
the decision of the court, outlined
the history of, Federal railroad
regulation.
The former "a section of the
transportation act) for the first
time authorizes the commission to
deal directly with intrastate rates
where they are unduly discriminat-
ing against interstate commerce.
power already indirectly exercised
as to persons and localities :,
said Mr.. Taft. TT is manifest
that the act made a new departure
The new measure imposed
an Affirmative duty on the Inter-
state Commerce Commission to fix
rates and to take other important
steps to maintain adequate railway
service for the people of the United
States. This is expressly declared
to be one of the purposes of the
bill"
Rates Affect System.
Mr.. Taft pointed out that rates
within the various States play an
important part in the maintenance
Of an adequate national railroad
system. They are. he said, in the
ratio OF 1 to 3.
The effective operation of the
act will reasonably and justly re-
quire that intrastate traffic should
pay a fair proportionate share of
the cost of maintaining an ade-
quate railway system" he said.
The clear intent of the act. Mr..
Taft went on to say, is to give the
commission power to remove any
disparity in rates fixed within the
various States which imposes amy
undue. unreasonable, or unjust dis
elimination against interstate or
foreign commerce"