The herald., 1898-03-08
MAXIMUM
Is DECIDED IN FAVOR OF THE
RAILROADS
LAWS OF NEBRASKA DON'T GO
The Limitation Is Held to Be Un-
reasonable and in Violation of
the Constitution
Associated Press Special Wire

WASHINGTON, March 7.-Justice Har-
Ian today delivered his opinion in the Ne
braska maximum freight rate case. He
held the Nebraska law to be contrary to
the fourteenth amendment, in that it au-
thorized the taking of property without
due process of law, and that it was there
fore invalid.
This case was instituted to test the valid
ity of a law passed by the Nebraska legis-
lature in 1893, prescribing the maximum
rates for the transportation of freights by
railroads within the state. The act applies
specifically to freight whose transit begins
and ends in the state, and there was no ef-
fort in it's enactment to control interstate
freight. 1t affected all the railroads in the
state, and the railroad companies insti-
tuted proceedings, which were terminated
by today'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 from putting
the law into force. The law was attacked
on the ground of it's unconstitutionality
1t was charged that inasmuch as the act
applied only to state freights, it was d dis
elimination against them and therefore
antagonistic to the spirit of the fourteenth
amendment to the constitution. The rail-
roads contended that the maximum rate
fixed was unreasonable and ruinous to the
roads. They also asserted that the act in
tcrfered with interstate commerce. The
state met these allegations with arguments
in support of the validity of the law.
The contention that the state was the
real party in interest, and that therefore
the federal courts could not take cogniz-
ance of it, under the eleventh amendment
to the constitution. was overruled the
court saying that the federal courts had
jurisdiction, both because of the diverse
citizenship or alicnage of the parties. ant
also on account of the fact that the act
| is attacked as contrary to the provisions
of the federal constitution.
Justice Harlan then took up the constitu.
tonal questions involved by the four
teenth amendment he said "it is pro-
vided that no state shall deprive any per.
son of property without due process OF
law nor deny any person within it's juris
diction the equal protection of the laws
That corporations are persons within the
meaning of this amendment is now set
tied"
The decision of the circuit court was de-
livered by Justice Brewer of the supreme
court, who sustained the contention of the
railroad companies and held against the
validity OF the law. His opinion was based
largely upon the charge of unreasonable
ness. He made a computation showing
that the reduction affected in freight rates
amounted on an average to 2912 per cent
which, he held, was too great a change
The case has been twice argued in the
supreme court, Hon. William J. Bryar
appearing as one of the counsel for the
state in the last trial.
Much interest has been manifested be.
cause of the probable influence of a result
favorable to the law would have upon leg
isation in other states.
Chief Justice Fuller and Justice Nc
Kcnna did not participate in the hearing
or in the decision.
GRADING BEGUN
PRESCOTT, Arz, March 7.-Grading on
the Prescott and Eastern railroad COM
menced today. The contractors expect to
have the work completed by July. The
line will be twenty-eight miles long, and
will run into one of the best mining Sec
tions of this county.
MORE RATE CUTTING
ST. PAUL, Mimi. March 1.-The 500 and
the Canadian Pacific have notified the in
terstate commerce commission that, be-
ginning Thursday. they will make fur
ther reduction of passenger rates between
st. Paul and the east and from st. Paul to
the Pacific coast. The Northern Pacific
and the Great Northern will meet the rates
between st. Paul and the Pacific coast.
The new rates to the coast will then be 500
first class and $40 second class from ST.
Paul to Puget sound. The cut to the east
is 50 below tht that f1EW 9SsSeanced price.