Omaha daily bee., 1898-03-08
DECIDES RATE CASE
United States Supreme Court Finally Takes
AfFlRMS DECISION OF LOWER COURT
Long Expected Opinion Handed Down by
Justice Harlan.
STATE LAW MAY BE CONSTITUTIONAL
Question Of Reasonable Rates Left to
Another Tribunal.
FORMER INJUNCTION MAY Be DISCHARGED
This Gun lie Done IL Condition Of Duss
iness Admits of just APP
plicatiOn of the
State Law.

WASHINGTON. March 7.-(Special Tele-
sram.)-The supreme court OF the United
States this morning handed down
an opinion la the Nebraska maxi
mum freight rate cases which have OK
cited so much interest throughout the coun-
try. Early this morning 1t was given out
that the decision would be forthcoming at
noon and in consequence the court room
was crowded with representatives OF the
| stock interests. who had anticipated the de-
cision by discountng 1t on Wall street. pre-
dieting 1t would be favorable to the rail.
| roads. Justice Harlan affirmed the decision
OF the circuit court and rendered the opin-
ion. announcing that Chief Justice Fuller
had not participated In either the considera-
tion or decision of the cases and that Jus
tice Mckenna was not member OF the
court when the cases were argued or sub.
mitted. Tho opinion was lengthy, embrace
Ing all the points presented by counsel
but the most vital and far-reaching was tho
decision that the circuit court had looked
far ahead in Its Judgment in giving the
Board Of Transportation the right to move
| for dissolution OF the present injunction
when conditions seemed right to Justify
| such course. In the language OF Justice
Conditions OF business. so far ms railroad
corporations are concerned, have probably
changed for the better and the rates pre-
scribed by the statue of 1898 may now AFFORD
| all compensation to which railroad COM
panies In Nebraska are entitled as between
| them and the public. In anticipation. per-
| haps, OF such change Of circumstances.
| the clrcui. court wisely provided In its Anal
ii tat iafop
/ board OF Transportation. might when cir
| cunstances have changed so that rates fixed
In October. 1893, shall yield to said COM
panes reasonable compensation for services
aforesaid, apply to the court by bill or
otherwise, as they might be advised, for a
further order in that behalf. or this pro-
vision of the final decree the State Board Of
| Transportation, If 30 advised can avail
| itself. In that event II the circuit court
| finds that the present condition of business
is such as to admit Of the application of the
| statute to the railroad companies in uues-
| tion without depriving them OF Just COM
| pensation. 1t will be it's duty to discharge
| the injunction heretofore granted and to
make whatever order is necessary to remove
any obstruction placed by the DEGREES In
| these cases in the way OF the enforcement .
| of the statute"
| CONSTITUTIONALITY is ADMITTED.
| Herein was seen the first intimation that
the law as passed was constitutional al
though through the body Of his opinion JUS
tice Harlan discussed at great length the
| right OF the state to make reasonable maxi
mum rates, but in conjunction with article
xiv OF the constitution. The court treated
most exhaustively the questions Of confisca-
| tion and equities In the case, using many
| tables and schedules to outline the basis
upon which the decision of the affirmation
Of the court below had been reached.
The opinion goes on to say that the idea
| that any legislature, state or federal, can
| conclusively determine for the people and
| for the courts that what it enacts In form
| Of law. or what 1t authorizes its agents %
! do, is consistent with fundamental law, il
| In opposition to the theory of our institu-
tions. Continuing Justice Harlan said: "It
| Is the duty Of courts, both federal and state.
| to see to H. that 10 right secured by the su-
preme law OF the land is impaired or de-
stroyed by legislation. The perpetuity Of our
| constitution and the liberty which is en-
joyed under these depend In no small de-
gree upon the power given the judiciary to
declare null and void all legislation that 10
| clearly repugnant to the supreme law OF the
land"
| The effect OF the decision Is that the su-
preme court leaves the whole question of rea-
sonableness of rates to another tribunal,
passing only upon the right OF the circuit
court to Intervene, notwithstanding that the
law known as II. r. 33, and which bears the
name OF Fred Newberry of Hamilton county,
| gives the supreme court OF the state the
right to declare whether the law Is within
the provisions Of the constitution Upon one
proposition the court was emphatic, that
there could be no separation Of local from
| interstate business, Justice Harlan contend
| Ing that the whole earnings made up the
receipts of the railroad company and that
one could not be made subservent to an
other.
PASSAGE OF THE ACT
In his opinion Justice Harlan first detailed
the facts relating to the passage OF the act
by the Nebraska legislature in 1898, and
then sketched briefly Its provisions, saying
that among others Of Its provisions was one
to fix reasonable maximum freight rates on
the railroads Of the state, and to classify
freights.
He then took up in order the points at
issue between the state and the railroad
companies. dealing first with the question OF
the propriety of considering the case as one
OF equity rather than of law. II was con-
tended in the argument that the railroads
had an adequate remedy At law before tho
state and supreme court. and that therefore
the United States circuit court sitting In
equity was without Jurisdiction. On this
| point he said:
We cannot accept this view OF the equity
Jurisdiction OF the circuit courts of the
United States. The adequacy or inadequacy
| OF remedy at law for the protection OF
| the rights OF one entitled upon any ground
to invoke the powers of n federal court IL
not to be conclusively determined by the
statutes Of the particular state In which the
suit may be brought. One who Is entitled
| TO sue In the federal circuit court may In