Omaha daily bee., 1893-07-30
JUDGE DUNDY HAS DECIDED
Temporary Injunction Granted Against the
Maximum Rate Bill.
CASE WILL COME UP LATER IN COURT
General Freight Agents Have writs FOR
supper-kcJ oicing Among Raiiroaders--
First Blood for the Buriing ton-No
Date sot tor Hearing.

When the railroad presidents got together
In Chicago the other day and formally de-
cidcd to put the now rates provided by house
roll 80 into effect on August ! and give the
people OF tho state n taste OF wnat the re-
suits OF such legislation would be, they were
simply ringing in stupendous blun.
Hon. j. NJ. Woolworth tripped
quietly into the federal building ycstcr-
day, where Juugc Dundy was sitting in
chambers, and, as solicitor for the stock
holders Of the Chicago & Northwestern,
Chicago, Burlington & Quincy, Union Pacific,
and Missouri Pacific Railroad companies
asked for the issuance of four restraining
orders to prevent tho officials OF the roads
named putting the now rates into OBJECT on
the lst OF August or posting thenew schedule
In the various depots or about tho grounds
of the companies The application also
asked TO restrain the members OF
the State Board of Transportation and
its secretaries from entertaining or
hearing any complaints against the roads
named for failing TO obey the law and from
seeking to enforce the law either by injunc-
tioD or manlamus, or any other legal pro-
cess, civil or criminal
Although the plaintiffs are stockholders Of
the various companies and are seeking to re-
strain their officers. it must not be supposed
officers who are made defendants In the
suits, as 1t Is the plan outlined by tho
Bhrewdcst legal counsel of the roads to get
the matter of the constitutionality of tho
new law before the courts, and there is
division Of sentiment between the stock
holders ana directors as to the desired out
come or the action to bo taken. Tho roads
did not desire to lay themselves liable to
the heavy aud repeated penalties for the
violation Of the law. hence 'the action of tho
presidentSn Chicago was taken to give the
stockholders cause for action. The APP
plication for injunction was promptly forth
coming. 1t brings the matter into court i'm
mediately aud points TO more speedy deter
mination of the question than could be
reached in any other way.
Complainant. In the Case
The complainant in the case against the
Northwestern is George Smith of London.
Eng, who alleges that, with others whom he
names and who figure with him in his COM
plant, he represents S700,000 of the capital
stock Of the company. He sets forth that
the net earnings of the company have never
exceeded per cent, and that for the past
five years they have done no more than meet
expenses and pay interest. He is satisfied
that it cannot hope to do better for years to
come, even il rates are maintained where
they are now Tho maximum rate bill, he
alleges, reduces rates 20 per cent, and he
sets forth that il the law is allowed to go
into effect it will prevent the road from max
Ing enough to pay operating expenses, and
will insure the deterioration of the property
through inability to keep up the repairs, re-
sulting eventually in the coniiscation Of the
property, contrary to the constitution OF the
United States, which provides that no one
shall be deprived of his property without
due process of law
The plaintiff further alleges that not only
Is the law unconstitutional because of its
terms, but that defects in the manner of it's
enactment render 1t void as the bill was not
read at large in the house on three different
days. 1t was very materially altered from
the original, and after being passed by that
body it was engrossed Ill such manner that
the engrosSed bill was radically different
from the one that passed the house 1t
went to tho senate, where 1t was again
changed and put upon its passage without
having been read ut large three times rs
provided by the constitution, and was put
upon its passage, although the president of
the senate protested that it had not been
read at large three times. After passing
that body in altogether different form from
what it had passed the house, it was enrolled,
and in the enrolling room another series Of
changes was brought about. 1t went to the
governor and was signed, but the bill signed
was not the one that had passed either
house.
1t Is further alleged that the roads will
have no opportunity to show the reasonable
ness of the present rates or the unreason-
ablencss OF those proposed, as the State
Board OF Transportation has the power con
ferred upon it by this law to still further
lower the rates, and it is for the supreme
court OF the state to pass upon tho reason
ablencss OF the rates, when brings about Il
condition OF affnirs that Is extremely unsat-
isfactory to the complainant, and he de-
claims at length on this unwarranted mixing
up of the functions of the judiciary and exec
utive branches OF the state government.
Interstate Commerce Law.
The interstate commerce law gives tho
plaintiff another cause for allegation. He
hat A,
goods shipped into the state from points
outside, and will also reduce rates on goods
shipped out of the state from within its
borders, and that such law is infringing on
the interstate law which Is altogether
wrong and unconstitutional He finds
section in the national constitution which
prohibits states from enacting laws affect
ing traffic between sta teS anu as no alleges
that this will be one OF the results of the en-
forccment of house roll 80, he bases upon it
another charge that the bill is unconstltu-
- Aonal.
..o states that Immediately after the pas
sage of the bill by the legislature the presi
dent OF the company was notified by the di-
rectors not to put the new rates into effect,
rs the bill was unconstitutional and the
president was requested 10 call u meeting of
the directors but the president has not been
able to get the directors together and as
the time That will now elapse before the lst
OF August is too short in which to bring
about such meeting for the purpose of di-
recting the action OF the president in the
matter, il Is necessary to have n restraining
order to compel him TO refrain from carrying
out his present intention of quitting the rates
into effect and thereby working an ir-
reparnble injury to the interests of the
stockholders. IL is also declared to be abso-
lutely necessary TO have an order issue, re-
Straining the state officers who are members
Of the State Board Of Transportation from
seeking To enforce the provisions of the Dill
as the attorney general of the state is
do Inr rod hnt