The daily independent., 1937-06-29

J
OF Court Decision BY Granting
Stay; Big Shippers Lost Rail
road Rebates Case But Get Paid
Until October; Roberts Himself
Wrote Original Opinion; Court
Had Denied Rehearing; Bill
Would Give Government Cash
Free To Building-Loan AssOcia-
tiOnS.
Wash:ngton-Much will be said
during the forthcoming Senate
debate on the Supreme Court is
sue about the extraordinary re-
cord of somersaults executed by
Justice Owen J. Roberts. Most OF
his reversalS are well known, but
perhaps the most remarkable OF
them all has completely escaped
attention.
1t occurred early in the after
noon of June 2, a few hours be-
fore Roberts and his colleagues
; shed their silken robes to depart
on a months summer Vaca-
ton. First, however, here is the
background of the incident:
On May II the Supreme Court
! handed down an 8 to l decision
IN favor of the Government in the
American Sheet & Tin Co., case.
The lone diSsenter was Justice
Pierce Butler. The majority opin-
ion was written by Justice
Roberts.
The decree, eliminating a form
Of railroad favoritism to big
shippers. was a smashing victory
for the Government and for hun
dreds of small manufacturers who
have to complete against larger
rivals.
But although they won the ver-
dict at the hands Of the full
Court. they lost in the secrecy OF
Justice Roberts chambers. 1t was
Roberts himself who had written
! the Courts decision, but two
weeks later, at the beheSt Of the
losers, he issued a stay of man
date suspending the Judgment
until the Court reconveneS IN
October. Thus, for a period OF
four months, Roberts in effect
reversed not only himself but the
entire Court.
The Case
! The case grew out OF an in
quiry conducted several years ago
by the Interstate Commerce Com
mission into the business praC-
ticeS of railroads. Be3ieged with
demands from the carriers for
higher freight rates, the ICCC de
cided to ascertain if there We're
not other ways of increasing their
revenue.
One thing discovered by the in
vestigatorS was the practice of
the roads giving large shippers
steel, packers, glass. etc-big re-
bates for So-called terminal al
loWanceS. After extended hear
ings held in practically every in
dustrial center in the country, the
ICC ordered the payments dis
continued on the ground that
they were unfair to small shippers
and at the same time deprived the
railroad of legitimate income.
Forty of the big shippers
promptly started legal action to
have the ICC order irvalidated.
The Government won in feder-
al courts in Kansas City. M;lWau-
kee and South Bend, Ind, But a
court in Pittsburgh held in favor
of the shippers. 1t was this case,
appealed by the Government
which the Supreme Court decid-
ed in favor of the Government
with Roberts writing the opinion
J Strange Interlude
There were several interesting
features of Roberts action in is
suing stay of mandate on the
losers petition for a reconSidera-
tion Of the case.
On June l, the day before he
granted his order, the Supreme
Court Summarily rejected two ap-
peals by other shippers for a re-
heaing. In both instances it cited
the May IT decision as the basis
for its turn-doWn.
Roberts issued his stay at the
request of former Senator David
A. Reed, Mellon attorney and a