Evening star., 1945-03-27
South Wins Move
In Long Fight for
Rail Rate Equality
BY JOSEPH A. FOX.

~ ~ASAA coAay SoaAo Olldlh VI
victory in major skirmish in
the long fight for railroad freight
rate equality with North and East.
In a 5-to-4 decision yesterday
which the court minority led by
Chief Justice Stone assaped as a
threat to Interstate Commerce Com
mission rate-regulatory procedure
the Supreme Court agreed to take
original Jurisdiction to hear a suit
in which Georgia charges 20 OF the
principal carriers of the country
with combining to fix collusive rates
which discriminate against Georgia,
with resultant benefit to the North
eastern region.
Under Study by ICC.
The Georgia complaint is on all
fours with that which the South
as whole has made for years, and
which right now is under study
by the ICC.
Justice Douglas wrote the opinion,
in which he was joined by Justices
Black, Reed, Murphy and Rutledge.
Going along with Chief Justice
Stone in the dissent were Justices
Roberts, Frankfurter and Jackson.
Months, however, will elapse be-
fore the Supreme Court can get
around to the point of deciding
If Georgia is entitled to the in
junction through which it seeks to
upset the rate-flxing practices under
fire. After certain other prelim-
inaries are disposed of, the court,
If custom is followed, will appoint
a special master to take testimony,
which will form the basis for the
ultimate ruling.
Damages Also Sought.
Georgia also sought to sue for
damages approximating $11 10000,
but the court declined to consider
this
The State claimed the right to
sue, under conspiracy and anti
trust laws, to protect both the in
terest OF her people and of her own
as proprietor. 1t was contended
that the Interstate Commerce Com
mission does not have the power
to afford relief against the conspir-
acy charged.
The defendant railroads, chal-
lenging the jurisdiction of the Su-
preme Court, contended that the
complaint did not present justi-
fiaole controversy.
Justice Douglas said that the
claims advanced by the State to
protect the interests concerned meet
standards of justifiability,' and
that Georgia, as a person" is
entitled to enforce the civil sane
tions of the antitrust laws"
THE relief which Georgia seeks
is not a matter subject to the ju-
risdiction of the Interstate Com
merce) commission" Justice Doug
las said. Georgia in this proceed
ing is not seeking an injunction
against the continuance of any
tariff; nor does she seek to have
any tariff provision Cancelled. She
merely asks that the alleged rate
fixing combination and conspiracy
among the defendant carriers be
enjoined."
Subject to Antitrust Laws.
While these carriers are sub
ject to the antitrust laws" the
court said, none of the powers
acquired by the commission since
the enactment of the Sherman
Anti-Trust) Act relates to the reg
ulation of rate-flxing combinations.
1t said also that the >fact that
the rates which have been fixed
may or may not be held unlawful
by the commission is immateriai to
the issue before us. Even a
combination to fix reasonable and
nondiscriminatory rates may be
illegal Amplifying, the court re-
called an earlier decision in which
it had said that zone of rea-
sonableneSs exists between maxima
and minima within which a carrier
charges for itself Within
that zone, the commission lacks
power to grant relief even though
the rates are raised to the maxima
by a conspiracy among carriers
who employ unlawful tactics"
The court said further that the
threatened injury" to the State
is clear, and that the damage
alleged is sufficient" to permit Geor-
gia to sue.
Dissent Is Cited.
Chief Justice Stones dissent de-
MED the court had Jurisdiction to
hear the suit and said the State
should be left ito its remedy, if
any, in District Court" However,
the Chief Justice said, Without
prior resort to, the commission,
Georgia does not and cannot estab-
lish in court proceeding that it
is threatened with injury by the
conspiracy or that it is necessary
for it to resort to the courts to
secure the relief which 1t seeks in
the present act.'
IF Georgia may prosecute the
present suit" the Chief Justice con-
cluded, every shipper or consignee
Of freight who asserts injury by a
conspiracy respecting railroad rates
in violation of the antitrust laws
may maintain a like suit in a Dis
trict court. The prosecution of
such suits cannot but fail to bring
chaos into the field of interstate
ratemaking."
~ n