The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-03
THE INJUNCTION CASE.

The Injunction issued against the Texas
railway commission by Judge Mccormick
of the United States circuit court is sweep.
ing in its effect. wiplng out all commission
tariffs AMI orders made since August. 1894
and leaving the railroads free to promulgate
their own rates, unless the commissions
shall undertake. TO adopt new regulations
acceptable to the roads during the tendency
OF tho present suits. nj
Any new tariffs not acceptable to the
railway companies. or that might be re-
garded rs too low or oppressive would
doubtless be promptly enjoined in supple
mental proceedings Just MS tM heretofore
existing rates have been.
Judge Mccormick does not In his decision
question the constitutionaHty of the com
mission law but sets aside the commission
tariffs and rulings on the broad ground
that they seem to be unjust to the roads;
that the rates allowed are too low to permit
the roads to make a fair profit on the in
veatment represented. The whole question
hinges, in fact, on the accuracy and just
ness Of the COMMISSIONS valuation of the
railroad properties within the State. The
commission admits the right of the ronds
TO enjoy fair return on the value of the
property, but It contends that the company
valuation is inflated and that such tariffs
as 1t has established will afford adequate
profits upon Just valuation
Judge Mccormick thinks tho commission
estimates Of the value OF the roads too low
ana that the commission tariffs are, there
fore. negotiable, and for this reason alone
no sets aside all the rulings and orders
made by the commission affecting railroad
rates. This necessarily includes the com
press rates and regulations which we're
annoMnosl on the thl.oIv that these en-
tered into the transportation problem, COM
pressed cotton bearing one and uncom-
pressed another rate These compress rates
We're part OF the rulings and orders made
since 1894 ard must. of course, go down
with the body of the commission regula-
lions.
The victory. temporarily at least. is a
1Eatd aI se,. ~
rect result OF the attempt of the commits
sion to establish n. to the roads, specially
Objectionable cotton rate this fall. inciud-
ing compress reductions. II was perhaps
proper in one sense that the roads should
be maie to share with the great cotton
interests of the State the depression result
ing from i-cert cotton. but 1t was more
than the railways would stand to virtually
The steamship companies and the maritime
insurance men put up rather than lowered
their rates. Unfortunately they were beyond
the jurisdiction of the commission and the
result was that thu greatest force of the
blow of reduced rates was attempted to be
made to fall on the roads and the COM
presses.
This action ty the Feicral court will II
Sustained, have the effect not of destroying
the commission law. but of causing the
commissioners simply to act with con-
servntism in the future and follow closely
the purpose OF their creation--the fair and
just regulation of rates anti the prevention
OF determinations. In surh event It would
become always necessary to consider the
vested interests of the railways as well as
tentIon OF the roads be correct the COM
mission has gone too far, been too radical.
and thus drawn upon itself and the State
the now existing conditions.
One OF the immediate and most crafty |
ing effects OF this injunction will probably |
be the relief Of tho congestion around the |
interior congresses OF the State and the |
rapid dispatch of cotton to the great com
presses here and elsewhere where 1t can
be prepared for prompt shipment. Tho
freight bloakades ought TO be speedily re-
lieved and the general cotton interests be
to q large extent benefited.