The Saint Paul globe., 1897-10-21
No END IS IN SIGHT
LONG CONTESTED sTEENERsON
RATE CASE rs REMANDED
FOR NEW TRIAL.
LATE JUDGE KERR REVERSED
IN THE DECISION HANDED DOWN
YESTERDAY BY THE sU-
PREME COURT.
SUFFICIENT PROOF LACKING
To Show the Proposed Rates Meant
Confiscation-Case Good for
Years.

The supreme court yesterday over
ruled the decision Of the late Judge
Kerr in the famous Steenerson rate
case, and ordered new trial. While
the opinion was written by Judge
Canty, the other judges wrote concur
ring opinions.
The decision is nominally against the
Great Northern Railroad company,
really against all railroads in the state,
and, by holding that the establishment
and regulation of rates by the rail-
road and warehouse commission, under
the railroad laws of this state, Is an
executive and not a judicial function,
establishes the right of the railroad
and warehouse commission to fix rates
and regulate charges on the lines with
in this state.
The decision has not finally disposed
of the case, but has sent it back to the
district court of Ramsey county for
new trial The case will be retired
there; and. if the company, in the first
trial omitted the proof of any fact
which the supreme court, in Its dec1-
sion has said it should have proved,
very naturally it will do it's best to
supply the lack next time. So the pub
lie need not hope to see the final set
tlement of the dispute for years TO
come; as it is claimed a federal ques-
ton is involved; and the company If
finally successful in the state courts,
may be relied on to carry the suit into
the highest court of the land.
The broad contention of the compa-
ny is, that it has a right to earn
reasonable income on what 1t would
cost to reproduce it's properties at the
present time In this the supreme court,
in this decision, does not particularly
disagree with the company but merely
says that it belonged to the railroad
commission and not to the district
court on appeal, to say what such rea-
sonable income would be-
The supreme court, by the decision
filed, says that the power of the courts
in such cases is limited in finding out
whether the rates named by the COM
mission are so extraordinarily small as
to amount to confiscation OF the COM
panys property. incidentally, the
opinion filed touches a good many sub
jects; but the points actually adjudi-
Gated and finally disposed of by the
court, are little, if any, in addition to
those mentioned above. The decision
cannot, therefore, it was remarked yes
terday afternoon, be regarded as
very extensive addition to the settled
law of the land, upon the subject of
the vested rights of railroad compa-
MES.
This case, which has stirred up the
railroad men, and the people from one
end of the country to the other, origin
ated in a complaint filed with the rail-
road and warehouse commission, by
Elias Steenerson. of Crookston, Sept.
80. 1893. The complaint alleged that the
freight rates charged by the Great
Northern company on grain from
Fisher and East Grand Forks to Min
neapolis and Duluth were excessive
and out of proportion to the price of
the grain, or the cost of maintaining
and operating the road. He asked that
the rate be reduced from 161a cents to
IL cents per hundred pounds.
Competitive roads wanted to inter-
vene, but were not permitted to do so.
Sept. s, 1894, the commission fixed a
mileage schedule of rates for the whole
Great Northern system, which would
reduce the rates complained of by
Steenerson from 161a to 14.7 cents per
hundred pounds.
The Great Northern appealed to the
district court. Dec. 13. 1894, Judge
Kerr filed an order allowing the
Az 7 g. svN l,n
case, but denying the right Of the
Milwaukee and Omaha companies to
do so. The state appealed to the su-
preme court from the decision of
Judge Kerr, allowing the Northern
Pacific to come in, and Judge Kerr's
order was modified to the extent of
ruling that, as a matter of informa-
ton, the court might allow the North
ern Pacific to be heard.
Sept %, 1895, Judge Kerr handed
down decision reversing the railroad
and warehouse commission.
Attorney General Childs, on behalf
Of the state, appealed to the supreme
court The case finally reached the
supreme court for the October term in
1895. and was argued in January, 1897.
Taking into account the interest on
borrowed money during the process of
building, which is supposed to be 10
per cent of the cost Of construction
the acquiring of terminals at ST. Paul
and Minneapolis together with other
items, the reasonable cost of reproduc-
ing the Manitoba railroad system is
judicially estimated at $44000,000, of
which $14,000,00G is in terminals and
$30, 100000 in the remainder of the line.
This is at the rate of less than $32, 900
per mile.
The court found that the cost of re-
producing the 1881 miles of main track
and 249 miles of sidetrack in this state
would be $22, 1893, $50, as follows:
Grading, etc Observation-Disclosures. $1,000, 900
Steel rails, etC .....'.'.. 4OOV,OOo
lies ....................s.... Z,UZo,UUJ
Equipments (rolling stock. ........ 5,17S, $50
Superintendenee of construction. 2,750,000
Total ...... ......................$2 so 1893, $50
The syllabus filed by Judge Canty is
as follows:
l. Under chapter 8, General Laws @ 1887, as
amended by chapter 106 Laws of 1891, the
state railroad and warehouse commission,
when reducing rates on the complaint of any
one that rates between certain points a
certain railroad are too high, may, for the
purpose of preventing discrimination by it's
own acts reduce the rates on the whole line
or system.
2. The question whether the rates for
transportation fixed by the state railroad and
warehouse commission are unreasonable and
confscatory Is not determined by the fact
that the income under the rates as so fixed
will not pay the amount Of the fixed charges
of the railroad; neither can the amount at
which the railroad sold years ago on mort
gage foreclosure sale be taken as the basis
l-sa1, lofar oi1o hot clr1o hi