Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-02-04
The Schedule Stands.
Judge Brewer Decides the Iowa
Railway Gases,
SUSTAINING THE STATE OFFICIALS.

He Thinks the Railways Not Entitled to
InjunctiOns Against the Commissioners
Until the Rates Fixed by Them Are
Proved to BE Not Compromising - A
Waiting Policy Advocated to See How
the Scheme Works.
Dies MONIES, Feb. Judge Brewer Sat
urday filed an opinion in the celebrated case
of the Chicago, Burlington & Quincy Rail
way company against the Iowa board of rail
way commissioners, involving the question OF
permanently enjoining the commissioners
from enforcing their schedule of maximum
rates. The injunction is dissolved. After
reviewing at some length the complainant's
bill of particulars, and handsomely compIi-
menting the independence manifested by
Commissioners Dey in refusing to approve the
schedule on the eve of election and under
threats from the Jobbers' association, the
judge launches out upon a discussion of the
merits of the question involved, which are
|. Has there been an invasion of the Injunction
order heretofore issued, and, therefore prac-
teal contempt of that order! 2. Did the sec
tons of the statute under which the commits
soners acted give authority to render such
decision and establish full schedule of rates
for the complainant. 3. Is the schedule an
nounced just and reasonable! The Judge
saws:
1.-The complaint generally of the railroad
companies is that this statute is unnecessarily
severe and stringent Obviously it was the
thought of the legislature to provide for all
contingencies, and to give the fullest power
to the commissioners Nor do l think this
the charge of class legislation. Power of
classification unquestionably exists; that is
conceded. Power to determine upon com
plant whether any charge or series of
charges by particular railroad company is
reasonable or not can not he questioned, and
power to declare that that determination
shall, as to the particular road, be a rule for
the future would seem to follow. All that |
can do is to state conclusions and results with
two or three principal matters controlling the
same.
while it is true that the application of the
Iowa rates to Iowa business would cause a
deficit, 1t is evident from the testimony that
If these Iowa rates were of uni rersal appl-
cation to the entire business of the com
pany there would not only he no
deficit, but considerable sum for dis
tribution as dividends. If that be true can
these rates be declared unreasonable =
Neither necessity of business, real or
seeming III one state, nor the laws of that
state furnish any excuse for reducing the
local tariff beneath that which is compensa-
tory The real question is not what effect
upon the earnings of complainant similar per
centage of reduction in all its tariffs would
occasion, but what would be the effect if the
Iowa schedule was applied to all its businessl
The answer TO this question seems. from the tes-
timony, to be that the rates would he compen-
satory. remark again that the amount of
purely local freight as compared with the
other business of the company is very small,
1 per cent, believe, so that if the entire
earnings from thispart of the business were
swept away the loss of the company would be
limited in amount OF course this fact does
not authorize injustice or sanction rates
which are unreasonable, but it suggests the
propriety, in view of the consideration here
tofore noticed, of actual experiment as the
most satisfactory test of the reasonableness of
the rates
THE officers of the railroad COMPANY de-
clare that the rates fixed by the commission
will 50 reduce its income that it will not suf-
flee to pay the running expenses of the road
and the interest on its bonded debt, leaving
nothing for dividends to its stockholders
The railway commissioners assert that their
schedule was framed to produce 5 per cent
income on the value of the road after having
cost of maintenance and the running ex-
penseS. Which view is the correct one it is
impossible To decide from the evidence sub
united. There is, however, a conclusive way and
it seems to me it is the only one. by which
this controversy can be settled, and that is
by experiment. A reduction of railway
charges is not always followed by reduction
of either gross or net income. 1t can soon be
settled which Is right-the railway company's
officers or the railway commissioner their
view of the effect of the commissions tariff of
rates by allowing the tariff to 20 into opera
ton
While quoting this language as applicable
versal application, but only under the cir
cumstances of the present case Where the
effect of the rates is doubtful with a prob
ability that they will prove compensatory
and the amount of business to be affected
thereby is comparatively small think the
courts may well wait for the test of experi-
ence"
that experience will have solved some of the
questions before the case comes to final hear
ing.
The same order will be made in the similar
case Of the Chicago, Milwaukee q st. Paul
Railway company VS.. the same defendants
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