St. Paul daily globe., 1888-07-27
Lengthy Opinion Wherein the
Reasons for Action Are
Given.
The Stickney System and the
Interstate Commerce Com
mission.
Important Ruling Affecting
Classification Of Freight
Rates.
Special to the Globe.

Speclal TO the GlODe.
LEAvENwoRTH, Kan., July Co.
Judge Brewer to-day rendered his
decision in the famous case of the
Iowa railroads against the Iowa rail-
road commissioners, ordering tenn
porary injunction against the schedule
of rates. The first question considered
was whether suit against the railroad
commission to enjoin them from enforc-
ing schedule of rates was a suit
against the state, within the purview OF
the eleventh amendment, and therefore
one of which the federal courts could
not take jurisdiction. Chief Justice
Marshall had ruled that unless the
state was named as party ii was not a
suit against the state, but the supreme
court in 123, United States, case of Mr..
Ayers, had adopted a more liberal view
and hold that if, although not named in
the record, the state be the real party in
interest, the one against whom the
judgment will operate, it is to be con-
sidered suit against the state, apply
ing that the state is not party to this
suit; that it is not the
REAL PARTY IN INTEREST
The one to be affected by the judg-
ment and upon whom it will operate,
the real parties being the railroad COM
panieS on the one side and the shippers
on the other; and that the state has
only that remote interest which springs
from the general welfare of the people.
the next considered was this: Can
the legislature delegate power to fix
rates to railroad commission being
recognized by the constitution? The
supreme court has held that the power
to fix rates is legislative power, and it
is generally true that the legislature
cannot delegate its power to another
body. Notwithstanding this the judge
declined to hold that the delegation is
unconstitutional for several reasons, the
principal one being this: An act will
not be declared Unconstitutional unless
clearly SO.
THERE IS NO INHERENT VICE
in delegating such power to commits
sion, the vital question being with both
carrier and shipper that the rates pre-
sumably be fair and reasonable and not
by what body they shall be put in force.
1t is question for the final determina-
ton of the supreme court OF the state
and therefore the federal court should
not anticipate its decision. The courts
of sister states have sustained similar
delegations of power, anu therefore
there is probability that this will be
sustained by the supreme court OF Iowa.
The third principal question is wheth-
er the legislature has unlimited power
in the matter of fixing rates either by
its own action, or through the agency OF
a railroad commission, and this queS-
ton is
ANSWERED IN THE NEGATIVE.
The Judge holds that the legislature
cannot fix rates so low as not to furnish
some compensation to the railroad COM
pany. and compensation to the owners
implies revenues sufficient 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 testimony
offered upon the application it is not
clearly established that the schedule
proffered by the defendants will fail of
producing compensation, yet there is a
probability that it will and therefore a
preliminary injunction is appropriate
until there can be
AFUIL AND FINAL INQUIRY.
In reference to the publication of
notice and the going into effect of the
schedule, he holds that whatever might
be the case as to the other railroad COM
panies, the four companies who have
corresponded with the board have a
right to insist that no publication was
complete, no schedule in force at the
time the restraining order was served.
Hence the complaint is too late with its
application, and preliminary injunc-
tion is ordered.
Judge Brewers decision is valuable
in throwing additional light Oh the power
of legislators to fix rates through COM
mission. The railroad companies claim
81 Loo, Of Inl mil InI 81
day hung upon this decision. The opin-
ion is of great length, going into the sub
ject in detail to the extent of about 7,5OC
urnr.dS