| Show question of right of congress TO REGULATE THE RATES charged by the railroads for transports Tran ion judge welborn of the U S circuit court decides in a test case brought by the atlanta Atlan tc pacific that the government can fix rates and compensation the decision not only attests gov business but involves the bight of congress to fix compensation fop all charges for interstate commerce los angeles cal aug 11 fudge welborn of the united states circuit court handed down a decision here this forenoon of great moment involving bome entirely new and original question touching the right of congress to regulate the rates chargeable by the rail roada of the country in the conduct of interstate commerce business it is probably the most important decision ever rendered affecting the rights and privileges ol 01 railroad corporations in this country the amount involved is as large as that of the income tax and the principles laid down by the court are as important in new york and mas eachus etts as in california the issues fettled by this decision are those arising lie tween the government of the united states and land grant railroads as to the rate of compensation that the roads should receive from the government for the transportation of troop mail and other effects the roads claimed they bad a right to charge the government the bame rates as individual shippers or travelers trA velere while congress has frequently provided compensation should not exceed half ot the regular rate the exact figures to bo fixed by the secretary of ar under these acts ot congress only half rates have been paid by the government and the roads desiring to have the matter fettled for all times brought a test case under the court of claims act tic pacific railroad being the plaintiff to recover full fare for the transportation of a trooper one philip barrett from albuquerque N M to cott junction ariz a distance ef miles the regular fare for the trip is 2070 the government offered 1323 ane railroad refuted to accept that sum and brought su t for the full amount the railroad the atlantic pacific was represented by judge terry its chief attorney assisted by mr herrin of the southern pacific the decision of judge welborn is very lengthy and enters fully into the discussion of the subject it ia a complete victory for the government the importance of this decision may be understood when it ia stated eliat the atlantic pacific alone would receive a year more for the transportation of troops and that when the charges for carrying the mail are added the difference on thia one road in favor of the government readies annually As the land grant roads in elude one half of the mileage of the railroads of the country the amount involved from to a year besides the santa fe and southern pacific systems there are the northera Nor pacific the texas and kansas roads the rok island and the numerous roads in mircouri Mira ouri wisconsin iowa and nebraska the decision however is not applicable to the land crant railroads alone but applies to all the railroads in the country and is not confined to government business but involves the right of congreso Con gresi to fix alie compensation for all charges by the railroads for interstate commerce the railway attorneys eay the case will not be appealed |
