Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1896-08-19
IMPORTANT DECISION.
Land Grant Railroads Must Garry
Troops at Hair Fare.

Land Grant Railroads must thfry
Troops at Half Fare.
Los Angeles, Aug. 13.-Judge We'll
born this morning handed down de-
cision that in it's far-reachiDg import
anco equals any decision ever decided
by California federal court. The
amount involved was as large as that
of the income tax, and the principles
laid down by the court are as import
ant in New York and Massachusetts as
in California or Texas. For many
years there has been dispute between
the government-aided or land grant
roads and the government as to the rata
Of compensation that the former shonld
receive for transportation of troops,
mail and other effects from point to
point. The roads claim they had, un-
der acts creating them, a right to
charge the government the same rates
for services rendered as they charge in
dividual shippers or travellers, while
congress has frequently provided that
the compensation should not exceed
half of the regular rate, the exact
figures to be fixed by the secretary Of
war.
Under these acts of congress, only
half rates have been paid by the gov
eminent, and the roads, desiring TO
have them settled, brought test case
under the court of claims act, the At
lantic q Pacific railroad being plain
tiff, to recover full fare for transporta-
tion ON the Both and 8lst days of
October, 1899, of a trooper, one Phillip
Barrett, from Albuquerque, N. M, TO
Prescott junction. Ariz., distance of
428 miles. The regular fare for the
trip is $3.50. The government offered
$13.23. The railroad refused to accept
the amount, and brought suit for the
full amount. The railroad-the At
lantio q Pacifc-was represented by
Judge Stacey, its chief attorney, as.
sisted by Mr.. Herrin, of the Southern
Pacific. The United States was repre-
sented by Joseph Fl. Call, special
United States attorney.
The Importance of the case was such
that it was very thoroughly and ex-
haustively argued at the January term,
full testimony taken and exhaustive
briefs submitted. The decision of
Judge Welborn is very voluminous, and
enters fully into the discussion of the
subject. 1t is complete victory for
the government The judge holds, in
substance, that congress has the right
TO fix the compensation for this class of
work, provided that the rates do not
amount to confscation of the railroad
property. The full Importance of this
decision is easier understood when it is
stated that the Atlantic & Pacific alone
transportation Of troops, and that,
when charges for carrying mails are
added, the difference on thin one road
in favor of the government reaches
81 800, 900 annually. AS the land
grant roads include one half the mile
age of the railroads of the country the
amount involves $1,000, 600 to $780,
900, 900 year. Besides the Santa Fe
and Southern Pacific systems, there
are the Northern Pacific, Kansas q
Texas roads, the Rock Island, and
roads in Missouri, Wisconsin, Iowa and
Nebraska.
The decision is not applicable to
Immigrant roads alone, but applies &c
all railroads in the country, and is not
confined to government business, but
involves the right of congress to fix this
compensation for all charges by tbs
railroads for interstate commerce.
will therefore be seen that it is one O
the most important cases ever decided
by court, and is a great victory TO
the government.
After an elaborate discussion Of tn
case. the court says:
My conclusion, as already indicated
is that the right of plaintiff under it
! charter, and without reference to sec
ton 20, to fix and determine it
freights and fares, is not absolute ant
unrestricted, but subject TO congress
sional limitation within the bounds o
reasonableness, and that, since tn,
maximum fixed by the secretary o
war, according to authorities cited, i
presumptively reasonable, and there
fore sufficient proof of unreasonable
ness, said maximum is lawful restric
tion, and plaintiffs charge in exces
thereof an unlawful charge"
, In conclusion the court holds: "Tha
defendants liability to plaintiff on &c
J count of the transportation service sue
for is $l3. 40, while by reason of dc
PENDANTS tender of payment plaintiff
, liable for the costs of the suit. Judg
ment will be accordingly entered.
1t is understood the case will not b
, appealed, and that Judge Stacey him
self has so declared.
No Writ VIII Issue.
D Go1or, The \