The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1888-08-01

An Important Decision Rendered BY
Judge Brewer. Of the United
States Court.
The Injunction Against the Iowa COM
missiOners COntinued-A Point In
Favor Of the ROads.
u.eavenworth CKsn.l specIal.l


About three weeks ago the Northwestern
Railroad Company applied to Judge
Brewer, OF the Eighth Circuit, for an in
junction to restrain the Railroad Commits
sioaers of Iowa from enforcing schedule
of transportation rates which it had made
under the authority Of the Iowa Legisla-
ture, on the grounds that the rates were
SO low that they would bankrupt the road
and that the Legislature can not delegate
its power of fixing rates. temporary
injunction was granted and an explana-
tory hearing was had at Leavenworth,
Kan. Judge Brewer has made decision
which continues the temporary injunction.
The decision says:
The first question considered was this:
Whether suit against the Railroad Commits
eioners 70 enJoin them from putting in force
schedule OF rates was suit against the state
within the purview OF the eleventh amendment
and therefore one OF which the Federal Court
could not take jurisdiction. Chief Justice
Marshall had ruled that unless the State
~esnst the state the w Supreme eO Court
has adopted a moro liberal view, and holds
that IL, although not named in the record.
the st te ia the real party in interest, and
against whom Judgment wi operate, IL il TO be
considered as IA suit against the State. Apply
ing this rule, Judge Brewer holds that the State
is not party this suit thdt IL Is not tho real
party I'm interest, the one TO be affected by the
Judgment and upon whom IL VIII operate, the
real parties being the railroad companies on the
one side and the shippers on the other, and that
the State has only that remote in crest whicn
springs from the general welfare or the people.
Tho next question considered was this Can
the Legislature delegate power TO NIX rates TO
railroad commission, no such mmisson DO
recognized by the Constitution? The Supreme
Court has held that the power 10 fix rates Is
legislative power and it is generally true that
the Legislature cannot delegate its powers TO
another body. Notwithstanding this Judge
L.~FI %l,At 1ata
unconstitutional for several reasons, the prin-
cipal ones be ng these: An act will not be de-
clarcd unconstitutional unless clearly 80. There
Is no inherent vice in delegating such power 20
a commission, the vital question being with
both carrier and shipper that the rates pre-
scribed be fair and reasonable and not by what
body they shall be put in force. 1t Is a question
for the final determination of the suprs me Court
of the State, and, therefore. the Federal Courts
should OF anticipate its decision Courts OF
sister States have sustained similar delegation
of power, and, therefore, there Is probability
that this will be sustained by the Supreme Court
OF Iowa.
The third principal question is whether the
Legislature has unlimited power in the matter
OF liking rates either by its own action or through
the agency OF railroad missioners, and this
question is answered in the negative. Judge
Brewer holds that the Legislature canno tx
rates so low as not 20 furnish some compensa-
ton to the ra noad company and revenues suf-
fcient to meet first, the cost of service; second,
the fixed charges by way of interest; and, third.
something however small in the way of dividend
He further holds that while from the volume OF
the testimony offered upon this application 10
is not clearly established that the schedule
prepared by the defendants will fail of pro-
ducing compensation, yet there is a probability
that ID WILL ard therefore preliminary tnlunc-
tion is appropriate until there Gun be full and
final inquiry in reference to the publication OF
notice and the going into effect Of the schedule.
He holds TINT, whatever might be the case as 20
the other railroad companies the four companies
who had corresponded with the board have right
to insist TINT no publication was complete and
no schedule in force at III time the restraining
order soSyed. Hence this complaiu ant is not
late with it application and preliminary in
junction Is ordered.
The question not yet being settled that
the rates of the Commissioners are rea-
sonable in the sense that Judge Brewer
used the word the injunction is continued
for further hearing on that point. 1t is
expected that sixty days at least will be
required to furnish such testimony.