The news & observer., 1898-03-08
THE RAILROADS WIN
Decision in the Nebraska
Maximum Case.
CITES 14TH AMENDMENT
REASONABLE RATES MAY BE
SUBJECT JUDICIAL INQUIRY.
LAW COVERED ONLY LIMITS OF STATE
Was Passed by Legislature Of l893--The Rates
tits Claimed Would Entail Loss and
Are Determined Solely from
This Standpoint,

This Standpoint.
Washington. d. c., March 7.-Justice
Harlan, in the Suprem court to-day rem
dered an opinion in the Nebraska maxi
mum freight rate case, holding the Ne
braska law to be contrary to the l4th
amendment in that it authorized the
taking of property without due process
of law
Justice Harlan's opinion alfred the
opinion of the Circuit court of Appeals
for the eighth circuit, which was against
the maximum freight rate law and IA
vorable to the railroads.
+ This case was instituted TO test the
validity of law passed by the Ne"
braska Legislature in 1893, prescribing
the maximum rates for the transporta
ton of freight by railroads within the
State The act applies specifically To
freight whose transit begins and ends IN
the State and there was no effort IN It's
enactment to contro. Interstate freight.
The law was attacked on the ground of
its constitutionality.
The case has ben twice argued iii the
Supreme court, Hon. W. }. Bryan APP
nearing as one of the counsel for tht
State mt last hearing. Much interest
has ben manifesto. in the decision ever
since the case was d0cketed because of
the probable influence result favorable
to the law would have upon legislation
in other States.
In his opinion Justice Harlan first
detailed the facts relating 10 the passage
-s3f< 1.irts act hy the Nebraska Legislature
4 II. hpi
prroyisions, saving that among Others of
its provisions was one to tiX reasonable
1raxfinnm freight rates ON the rail-
roads of the State and TO classify
freights. He then took up in order the
points mt issue between the State and
the railroad companies.
He quoted Il number Of opinions and
said that under the adjudicatiOns the
following principles must be regarded as
settled:
II. A railroad corporation is a person
within the meaning of the fourteenth
amendment. declaring that no State shall
deprive any person of property without
due process of law. nor deny to any
person within its jurisdiction the equal
protection of the laws.
80 A State enactment or regulation
made under the authority of a State
enactment, establishing such rates for
the transportation of persons or prop
prtv rs will not admit of the carrier =
earning such compensation as under all
the circumstances is just to it and to the
public. would deprive such carrier of its
property without due process of law.
and eny to it the equal protection of the
laws and would therefore I've lepug-
nant to the fourteenth amendment Of
the Constitution of the United States.
'.3-Wh;lc rates for the transportation
of persons and property within the linn
it's of a State are primarily for its de-
termination. the question whether they
are so unreasonably low as to deprive
the carrier of its property without sucA
COMPENSATION as the Constitution Sc
cures and, therefore. without due pro-
cess of law, cannot be so conclusiveIy
determined by the Legislature of the
State or by regulations adopted under it's
authority. that the matter may not be-
come he subject of judicial inquiry"
This last proposition Justice Harlan
said. covered the case in point. He
then proceeded to make an exhaustive
examination into the effect of the en-
forcement of the rates prescribed upon
tha business of the different Nebraska
lines. showing the reduction to amount
to $3.50 per cent. for the years 1891,
1892 and 1893. The result was to show
that each of the roads involved would
for this period have conducted their bust
ness at a loss with only one or two eX-
ceptions. and therefore only short
while.
THE ide; that any legislature State
or Federal, can cOnclusively determine
for the people and for the courts that
what it enlcts i'll the form of law or
what it authorizes it's agents TO do, is
consistent with the fundamental law. is
in opposition to the theory of our institu-
tions."
1t had been c0ntended that the State
of Nebraska could legally require local
freight business to he conducted even af
an actual loss, if the company earned
on It's Interstate business enough to
give it lust compensation respect Of
it's entire line and all its business, inter
State and domestic. The court did not
accent this view, Justice Harlan saying
SIN our Judgment. it must be held that
the reasonableness or unreasonableness
of rates prescribed by Il State for the
Transportation of persons and property
wholly within its limits must be deter
mined without reference to the business
of AN Interstate character done by the
carrier. or to the profits derived from
that business. The State cannot justify
unreasonably low rates for domestic
TRANSPORTATION. considered alone. upon
! the ground that the carrier lis earning