The state herald., 1898-03-11
THE LAW INVALID.
NEBRASKA RAILROADS SUSTAIN.
Tho Supreme Court of the United State.
supports Every Contention Of the Roads
Against the Law.

Washington, March s.-The Supreme
Court to-day rendered an opinion In
the Nebraska maximum freight rate
case. The opinion was handed down
by Justice Harlan.
Justice Harlan's opinion held the Ne
braska law to be contrary to the four
feenth amendment In that II authorized
taking property without due process OF
law, and was therefore invalid. Hence
the railroads won.
Justice Harlan's opinion affirmed the
opinion Of the Circuit Court OF Ap-
peals for the Eighth circuit. which was
against the maximum freight rates
law and favorable to the railroads.
This case was instituted to test the
validity of II law passed by the Ne
braska Legislature In 1893, prescrib-
Ing the maximum rates for the trans.
pOrtation of freights by railroad with
In the state. The act applies specific
ally to freight whose transit begins
and ends in the state, and there was
no effort in Its enactment to control
interstate freight. 1t affected all the
railroads In the state, and the railroad
companies Instituted proceedings
which We're terminated by to-day's
opinion, by filing bill In the Nebraska
Circuit Court soon after the law was
enacted. The object of the bill was to
secure an order restraining the state
officials from putting the law into
force.
The law was attacked on the ground
OF Its constitutlOnality. 1t was charged
that inasmuch as the act applied only
to state freights, 1t was discrimina-
ton against them, and therefore an
tag0nisitc to the spirit of the four
teenth amendment to the constitution.
They contended that the maximum
rate fixed was unreasonable and ruin.
ous to the roads. 1t was also asserted
that the act interfered with interstate
commerce. The state met these alle-
cations with argument in support of
the validity of the law. 1t Withdrew
the counter charge that the case was
one of which the federal courts are
not properly adjudicators.
The decision in the Circuit Court
was delivered by Justice Brewer Of the
Supreme Court. who sustained the con-
tention of the railroad companies and
held against the validity Of the law.
HIS opinion was based largely upon
the charge of unreasOnableness. He
made n computation showing that the
reduction effected in freight rates
amounted on an average to 29h per
cent, which he held was too great a
change. The case has been twice ar
gued In the Supreme Court. Hon. w. J.
Bryan appearing as one of the counsel
FOR the state at the last hearing. Much
interest has been manifested In the
decision ever since the case was dock
eted, because of the probable influence
a result favorable to the law would
have upon Legislation in other states.
Justice Harlan said that the follow
Ing principles must he regarded as set
tied:
First-A corporation is person with.
In the meaning of the fourteenth
amendment. declaring that no state
snail deprive any person OF property
without due process Of law. nor DENY
to any person within Its Jurisdiction
the equal protection Of the laws.
Second-A state enactment or regu-
Iation made under the authority Of n
state enactment. establishing such
rates for the transportation OF persons
or property by railroads ns will not adj
INIT or the charter earning such com.
pensation as under the circumstances
Is Just to 1t. and to the public, would
deprive such carrier of Its property
without due process Of law, and deny
TO u the equal protection OF the laws
and would. therefore. be repuynnnt to
the fourteenth amendment Of the con.
stitution OF the United States.
Ihird-Whilc rates for the transpor.
tation OF persons and property within
the limits OF n state are primarily for
It's determination. the question wheth.
or they are so nnreasonably low as to
deprive the carrier OF Its propertv
without such compensation as the con-
stitution secures, and. therefore, with.
out due process of law. cannot he 40
determined by the Legislature Of the
state, or by regulations adopted under
It's regulations that the matter NAV NOT
become the subject Of judicial inquiry.
This last proposition. Justice Harlan
said. covered the ease In point. He
then proceeded TO make an exhaustive
examination into the effect Of the en-.
forcement OF the rates prescribed upon
the business OF the different Nebrnsks
lines. showing the reduction to amount
TO 20 per cent. for the years 1891, 1892
and 1893. The result was 10 show ths,
each or the roads involved would for
this period have conducted their bus
lness nj loss, with only one or two
exceptions. and those for only n short
time.