Condon globe. (Condon, Gilliam Co., Or.) 189?-1919, 1896-08-21
IMPORTANT DECISION.
Land Grant Railroads Must Garry
Troops at Half Fare.

Land d-Grant Railroads Must Garry
Troops at Half Fare.
Los Angeles, Aug. 1S.-Judge Wei.
born this morning handed down a de.
cision that in its far.reaohing import
ance equals any decision ever decided
BY q 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 rate
of compensation that the former should
receive for transportation Of troops,
mail and other effects from point to
point. The roads claim they had, un.
der acts creating them, 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
ernment, and the roads, desiring to
have them settled, brought a test case
under the court Of claims act, the At
lantic s. Pacific railroad being plain
tiff, to recover full fare for transporta-
tion ON the 80*h and 31st days Of
October, 1899, of trooper, one Phillip
Barrett, from Albuquerque, N. NJ, to
Prescott Junction, Ariz., q distance OF
42s miles. The regular fare for the
trip is $3.50. The government offered
$1S.23. The railroad refused to accept
the amount, and brought suit for the
full amount. The railroad-the At
lantic & 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 81. 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 confiscation Of the railroad
property. The full Importance Of this
decision is easier understood when it is
stated that the Atlantic & Pacific alone
would receive $3.50, 900 year more for
transportation of troops, and that,
when charges for carrying mails are
added, the difference on this one road
in favor Of the government reaches
$1,500,0 600 annually. AS the land.
grant roads include one.hah the mile.
age of the railroads of the country, the
amount involves $40, 900, 900 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 tc
land-grant roads alone, but applies tc
all railroads in the country, and is not
confined to government business, but
involves the right of congress to fix the
compensation for all charges by the
railroads for interstate commerce. II
| will therefore be seen that it is one OF
the most important cases ever decided
by court, and is great victory fol
the government.
After an elaborate discussion of the
case, the court says:
My conclusion, as already indicated,
is that the right of plaintiff under its
charter, and without reference to sec
tion 20, to fix and determine its
freights and fares, is not absolute and
unrestricted, but subject to congres
sional limitation within the bounds Of
reasonableness, and that, since the
maximum fixed by the secretary oi
war, according to authorities cited, il
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: '"That
defendants liability to plaintiff on &C
count Of the transportation service sued
for is $13.40, while by reason Of de
fendant's tender of payment plaintiff il
liable for the costs Of the suit Judg
ment will be accordingly entered.
1t is understood the case will not r.
appealed, and that Judge Stacey hi
self has so declared.
No Writ viii Issue.
Salem, Aug. 13.-The governor has
declined to issue a writ for a special
election in Coos county for the selection