The Ronan Pioneer

MONTANA LOSES
RAIL RATE CASE

Judge Bourquin Rules In Support of Edict on Increasing Intra-state Levies.

Helena.—United States District Judge George M. Bourquin in a decision last week granted the United States the interstate commerce commission and five intervening railroads a decree in the case in which the state of Montana and the Montana board of railroad commissioners sought to annul the defendant interstate commerce commission's order that intrastate freight rates on certain classes of commodities be increased in amount at least equal to a like increase in interstate rates, so long as the latter increase is made.

The carriers' application for a nation-wide increase in freight rates was heard and denied in 1931, but the commission left it to the will of the carriers to increase rates, if profitable, upon certain classes of commodities. The commission reserved the right to consider the reasonableness of individual rates.

The interstate increase was put into effect by the carriers when their earnings were not sufficient and their service to the public was impaired. Intrastate increases were then granted by all but a few states, including Montana. The carriers complained of a discrimination in this state against interstate commerce and the suit resulted.

"It follows," says Judge Bourquin's decision, "that if increase is not likely to produce more revenue, its authorization is an idle, unjustifiable, and illegal exercise of the commission's power. For to that beneficial end alone and not for its own sake, is the power conferred upon the commission.

"Primarily, intrastate rates are within state control, and whenever as here the commission assumes to exercise authority over them, the justification must clearly appear."

"We are of the opinion that the reports of the commission contain all essential findings of facts to justify its order, however colloquially expressed."

"Examination of the evidence clearly makes to appear that the increase in intrastate rates will likely increase revenues • • • The increased rates expressly found reasonable interstate, a like increase to restore former relationship is reasonable intrastate."