The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-10-14
TEXAS ROADS WILL FIGHT.
TO TEST THE COMPREHENSIVE OF
THE STATE COMMISSION
Reagan Threatened Another Reduction OF
Rates n They wouldn't Compress Their
Co,ton-A H,n In Cha.eery 10 be Brought
By tho BondhoIderr-A Parallel to the
rnrous Minnesota Commission Case.

tho HOndnOIuefr-A Farhuei 70 the
rarous Minnesota Coum,ssion Case.
The trouble between tho Texas railroads
and the state Railroad Commission over the
destructive reduction Of freight rates is likely
70 come to head very soon. The legal nd
yisers OF tho Southern Pacific. Atchison.
Missouri Pacific. and Missouri. Kansas and
TEXAS systems have Ind number Of meetings
IN New York during the last few days In order
10 decide upon concurrent action.
"The companies might havo submitted to
Commissioner Reagan's FIRST reduction OF
rates." said general counsel OF one OF the
roads yesterday. but when the Commissioner
came again and ordered tho railroads to COM
press their cotton rs well as cut the rate in
balft thought It was going too far.
when tho first reduced schedule Of rites
was announced by tho Commission tho rail-
roads asked whether they should DO required
in addition. to compress the cotton for ship
mars. DO as you please was tho reply. The
,ompanics decided not to compress tho cot
ton. There was no money In carrying cotton.
nc N WINS The roads began carrying the cot
Ton lust as they received 1t, without compress
ing It. The. Commission came around again
and said that tho companies would have to
compress II or tho rates would be reduced still
lower, In order to allow for tho cost Of com.
prcssion. This single item amounts to from
slOO.OO0 to S15O.OOC annually for one Of the
railroads Heretofore nm allowance was made
in tho rate for the shipment Of compressed or
uncompresscd cotton.
panies have been carefully studying a plan Of
attack upon the Gommigsi2n. They have
siNeI the act creating the Com mi Sec
i es th is claim viii be- tRas net that
the decisions Of the Commission IH shall be final
hS Of oys tho Se Mnnes 1ss
division Of the Chicago. Milwaukee end st.
Paul and tho compeRy appeailed t to The s sS
Company n hearing. and held that the decision
could be no judicial inquiry as to the reason
The tnited states Supreme Court our t held that
the act creating the Minnesota Railroad Com
n se nsa sa fsn as T ns
Gepr! hSetf y ths equal prooet9n q the
w whf sass hna bs
Ct 81 time S py fba IT, ss q
It Is regarded as doubtful that relief can be
obtained in u State court. The counsel fo;, one
"han nee H Would be entered IN one 81 the Fed
eral courts. This may be done by the bond
holders through their trustees. Tho end could
be reached by bringing actions against the Rail-
road COMMISSIONERS the Attorney General Of
Texas. and the respective companies to re-
strain the. enforcement Of the law. on the
theory that it destroys the earning power Of
causes needless waste against which court
Of equity should grant relief.
The railroads have been quietly preparing
for bitter struggle. and they hoped to spring
i upon the Railroad Commission before the
latter had time to prepare. It seems that the
Texas Railroad act was carefully framed with
full knowledge Of the Minnesota case. and
Commissioners Reagan expected opposition
when no ordered the destructive rates. Tho
contest will probably attract more attention
than any railroad case that has been In the
courts for a long time.