Morning journal and courier., 1884-03-19
SINGLE COPIES TWO CENTS.
wednesday, March 19. 1854.
AN INTEREsTING DECISION.

BY the law of Tennessee the Railroad COM
mission of the State is given the gen eral
supervision and control of all railroads and
railroad operations in the State. It is not
surprising that such law has made trouble.
Indeed, it would be surprising if it had
not. Two of the railroads of Tennessee
found it necessary to petition for an injunc-
ton TO restrain the Railroad commission
from interfering with their property or bnsi-
ness, and decision in the case has Just
been given by the United States Circuit
court at Nashville.
The main question before the court was
whether the Railroad commission was a
legal and constitutional power. The railroads
claimed that the law under which it worked
was not properly enacted and was repugnant
to the constitution of the State and of the
United States. The court was unanimous
in the opinion that the commission, with all
its extraordinary powers, was not constitu.
tionally constructed. The legislature, says
the opinion, may require persons operating
railroads to observe precautionary measures
against accident, may forbid unjust dis Grim
ination and exorbitant charges, and, where
there is no valid contract to the contrary,
prescribe reasonable maximum of charges
for the services to be performed. But legis-
lation cannot, under pretence of regulation,
deprive the corporation of any of its essen
tial rights and privileges. In other words,
the rules prescribed and the power exerted
must be within the ''police power" In fact,
and not covert amendments to their charters
in curtailment of their corporate franchises.
The railroad law of Tennessee places the bust
ness of all railroad corporations in the State
under the supervision and control of the COM
mission. In addition to the authority to pre-
scribe rates and regulate charges. the commits
sion has all the powers pertaining to the
absolute ownership of property. In the ex-
ereise of such powers, the commission can
Iimit receipts and dictate expenditures,
ensure the prosperity of one company and
drive another into bankruptcy, and assume
the management and control of the business
and operations of every railroad in the State.
railroad corporations are concerned, the
issues of life and death as in the hollow of
their hands. The regulating power of the
legislature and courts is sufficient to compel
railroad companies to perform all their under
takings in favor of the public, and to prevent
or punish all derelictions of duty But the
legislature cannot lawfully authorize the
commission, by direct or indirect legislation
intended to accomplish that end or neces-
sarily involving that result, to take contrO
Of their business or operations. Such legis-
laticn is an unauthorized and unconstitutional
invasion of private rights.
The court further urged against the leeali-
ty of the construction of the commission that
il is q regulation of Interstate commerce and
to that extent an intrusion upon the exclu>
sive legislative rights of Congress. 1t held
that the power of States to regulate railroad
rates is limited to transportation confined to
the boundaries of the State, and that the at
tempt of any legislature to control the rates
for fares and freights of persons and COM
modities passing over railroads from one
State into another, on the theory of regula-
ting the charge for the distance passed over
within the law-makipg State, is invalid as a
This is an important decision. It will do
something to check the prevailing tendency
of legislatures to try to run the railroads of
their States. It calls attention to fact
which is too often overlooked nowadays
namely, that railroad companies have some
rights as well as those who find pleasure and
profit in fighting them.