The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-04-14
BRYAN ADvOCATESRlCHT
OF STATE TO REDUCE RAILROAD
RATES.
The People Have Some Rights az
Well as the Corpora
lions.

WASHINGTON, D. c., April 6.-The
supreme court room and the corridors
without are crowded today with spectators
attracted by the appearance of Hon. w.
J. Bryan as counsel in a case. Two lines
of people, many Of them ladies, waited
outside of the door after the court rooms
had been filled and when Mr.. Bryan ap-
peared at noon they applauded him. The
case in hearing involves the constitution
ality of a law of the state of Nebraska
enacted April 12 1893, entitled "An act tc
regulate railroads, to classify freights, to
fix reasonable maximum rates to be
charged for the transportation of
freights," etc. Several railroad companies
were arrayed against the state board of
transportation, the Union Pacific at their
head with James c. Carter as chief coun-
sci. 1t was the contention of the railroads
that the purpose of the legislature was
not to fix the maximum rates to prevent
extortion but to compel the roads to carry
goods upon such terms as the farmers of
Nebraska could afford to pay. The case
was appealed by the state board Of trans
portation from the United States circuit
court for the district of Nebraska, and
Mr.. Bryan was associated with the at
torney-general Of the state as counsel.
Mr.. Bryan, in beginning his argument
SAID that 1T was unfortunate that there
was 10 established rule by which the court
was to determine what were reasonable
rates. 1t must be presumed, however, that
a legislature in fixing what were held to
be reasonable RI ties acted in good faith
Mr.. Carter had held that there We're three
kinds of rates, reasonable, not reasonable
and unreasonable, leaving a space in which
motive could act, but Mr.. Bryan contcnde1
that there We're but two kinds of rates.
reasonable and unreasonable, and that a
court, in passing upon rates, could not con-
slider the motives Of railroads. A company
which erred must suffer the consequences
"A railroad u.s., he said, Ito certain
extent, monopoly and the people cannot
depend on the laws of competition to pro-
tect the n from the eXactions Of a mon
opoly."
In deciding what were reasonable rates
he argued. court must not base them on
the original cost of d road or on it's stocks
and bonds, but on its present value. Farm
ers and store keepers, whose property fell
in value, could not charge higher rates,
not having monopoly, not being able to
water stocks and bonds
When he came to discuss the rights of
corporations Mr.. Bryan became somewhat
oratorical. He said
IF few corporations can secure a mo-
nopoly and not be governed by the same
rules others, the people are the victims
of these monopolieS.
THE rights Of citizens to reasonable
rates is as sacred as those Of railroads to
re- sonable profits.
1.-The court cannot assume that individu-
ais would raise up in their midst a ficti-
tious individual, a corporate parsonage,
and endow 1t with rights higher than those
of the creators"
Mr.. Bryan argued that courts should not
protect stock and bondholders in attempts
to secure profits on fictitious capitalization.
The stock and bondhOlder was presumed
to invest with his eyes open If he made a
mistake it was no duty of court to protect
him from the consequences Of that error.
The states will have legislation to prevent
Enti tons Toll hr1f
held right to profits on fictitious capitali-
cation, they encouraged it and nulified the
policy of the states. If the courts held
that, corporations must take their chances
like individuals in business, they would he
come interested and work for those things
which would tend to promote the general
welfare.
He added: eff there be some who can
exempt themselves from general conditions
there is a temptation to them to endeavor
to perpetuate those conditions"
In conclusion he declared that the people
who gave value to a road by using it were
much entitled to consideration as those
who contributed to build it, else there was
no equality for citizens before the courts
Mr.. Bryan spoke until O'clock and
when he finished the crowd swept from
the courtroom with rush.
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