New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-23
RAILROAD LAWS UPSET.
A DECISION AGAINST ARBITRARY RATES
THE ACT CREATING THE STATE COMMISSION
VIRTUALLY DECLARED UNCONSTITUTIONAL.

LHL AtI LkLAllNr lHE S4N4E NO-Nln-N--|-'
VIRTUALLY DECLARED UNCONSTITUTIONAL.
News We received in this city yesterday OF
decision OF the United states Court for the District
OF Texas which VIII cause every railroad security
holder to sleep easier at night and worry less oy
DAY The decision Wa pract calv u the effect that aii
hostile state legislation which cOmpes railroad, 10 ~
business on such a basis that they cannot pay thr
interest their bonds. impairment ~ me con
tract with the holders o. such bonds. and Is there"
for, II violation OF the Constitution o. the United
states The iact- Of The case arr as ioloWs
Tne Legislature Of the state OF TexaS In Apri.
1891 passed bill creating railroad commission
granting II extraordinary power, and providlhS lor
tn enforcement OF strong penalties against the faii
road companies for any failure 10 comply Win inc
requirement, OF commission. and also G,Flng Inc
right 10 all shippers to bring actions against the
railroad companies 10 recover such penaues. Inc
rates established by the COMM ssiOncr' Were 80
low the railroad companies asserted. that business
was being done AZ a loss. and after endeavonns 10
secure relief through the commission, tn ROADS were
forced to apply for the same 10 the court.
As all thu railroad corporations citizens OF the
State OF Texas, they could not BRING an ACTON lor
relief against tn Commissioner IL the Federal Court
80 actions were brought by the trustees OF tn mort
race. OF the sevcra companies against the railroad
companies themselves, and against The stat" llroau
Commission The bills thus filed In the fedeiih Nou'
asked that Al injunction might Issue restraining
the Commissioners from insttutng or authoF'Ahs'
or directing any Others institute suits or acu'h9
against the raj road companies 10 recover any Peh1V
under the Commission act, and restraining al oul'
individual, or corporations tmeanins the supper
from brins1ng o. nStutng suits against the raliO"N
companies for recover OF damages, oNeiOli'
and penaltie. under the Commission law. and furthe
enjoining thc Commission from promu!gatn-' sS'a"
fishing or making effective against the railroad com
pauie, an further tarn attempting s. o. d..
The argument was had hefor" Judge McI omcA'
81 the United state, Court at Dallas. Tex. ana GOV
cred a pcnod Of more than "a week lhe Iosu' III
tercsted were tho Tcxa, and Pacific the International
and Great Northern. the s. Louis Southwestern T. co'
Ton Belt7l and the Gul Colorado ana santa Re- liz
complainant In the tel suit tn Mercantile Trust
Company IL tm- city. represented b. Farrar Jones
A Krutt,c hnitt u New-Oreans and Alexander D."
,,reer Of New York associated with John !. DloH
j. j. McCook and +. /. krutt-chniit a course
United states senators Coke and Mill and Attorney
General Culbcr,Oa. OF 1exa,. represented 'hr ueie''
ans me cases werc brought upon thr general
yround that the act establishing the Railroad CON
mission and the tariff, established by the Commission
dar-,vec the railroad compauieS and the bondh"ldrf.
having ler- OIL the road- 81 their property without
On. process OF law and denied T. them the equal
projections Of the laws.
Win,lov = Pierce general attorney Of tn Texas
and Pacific Railway Company m Ne"-horA received
the following dispatch Yesterday from L. >. L"veti
m. r,aa.. attorney M Daln.: Judge Mccormick has
lust read d lengthy opinion upholdlng right 81 bono
holder g. bring suit and grant all the RELIEF PRAYED
Tor by the c0mplalnaut-. lie % effect holds the ell
Tire act unconstitutional. a complete victor.
NJ Pierce said that This decision would ave In
mediate relief o. the railroads and eheotual' BLOCK
all attempt o. the part OF the state kairoad Con"
mission L. ny rate until the case shall b. finally
passed upon r. the sup,me Court when tn road'
confidently expect the 49, t. b. declared unconsu'u
uoual.
John T. McCook az the firm u Alexander & Green
said "Thl, i, probably the most important decision
made by "a Federal Judge IN many year., and VIII be
great protection and sccur1t,. not only e. the ran
road cOmpauie- thcm>cive, but L. the holder. ~ all
their -ecurtle-. a. a. guarantee tc rillruai com
panic, again. the attempt, ~ state Railroad Com
mi, ,ons o. establish and enforce unreasonable rates
and tanfs It B.. hard L. describe the ~ide-reachIn-
effect Of such decision. but il s the test new ina"
ma come o. tho railroads and their security holders
for "a lOns time and n d, especially gratifying that u
ma come by the Why Of lcAas.
The effect 81 the decision ou the market Wa li
sianty apparent. TeXa, and Pacific per cent mr.
mort gag. bond went ur = % point. aud LEA ana
lucinc Income bond went up . points. TIC IfNa-
state Railroad Commission consists OF cN' mica Hldc'
senator John II. Reagan, William T. Mclean and l. l.
Foster