The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-03-08
WESTERN RAILROADS WIN.
DEOIsIoN IN THE NEBBAsKA MAXI
MUM FREIGHT RATE CASE.

the PspuIist scheduie or Ratca-Loud ne
nana fren Nebraska Peps Tor an Extra
Session 90 Pass Auothsr Fretrht Hiti.
WASHINGTON, March 7.-The long pending
Nebraska maximum freight rate cases was do
cided to-day by the Supreme Court In favor OF
the railroads, the decision being the unanimous
voice Of tho bench. Chief Justice Fuller took
no part in the decision and Justice McKenna,
not having been a member Of the court, Of
course took no part. The opinion was road by
Justice Harlan. Tho case came to the Su-
promo Court from the Court of Appeals for the
EigbthsCircuit, when q decree was rendered In
favor Of the railroads by Justice Brewer on the
bench with the circuit Judges. That decree
was affirmed by to-day's action.
The litigation grew out Of tho law passed by
the Legislature of Nebraska in 1903 authorin-
ing the State Board of Transportation to estab-
lish maximum rates 10 be charged by the rail-
roads for the transportation Of local freight
traffic. When their schedule appeared tho
Union Pacific, the Chicago. Burlington and
Quincy and the Chicago and Northwestern COM
panies suod out writs of injunction restraining
the board from putting 1t into effect. Tho in
junction was granted by the Circuit Court and
the JUDGMENT affirmed by the Court OF Appeals.
The State officials then brought the case here.
1t was twice argued; the last time in May,
1897, when William Jennings Bryan appeared
for the State and James c. Carter for the rail-
roads.
The opinion Of the court discusses several
questions and disposes of them as follows:
First-The remedy OF the railroads was at
equity and not at law.
Second-A suit against State officials TO pro-
vent the enforcement of u State law, on the
| ground that 1t Is repugnant to the Federal Con-
| stitution, Is not a suit against the State within
the meaning Of that term as used In tho Consti-
tuition.
right or power to fix the rates to be charged for
the transportation Of local traffic on the Union
Pacific. for the reason that Congress reserved Is r
is not we'll founded. Congress has never passed
any law to carry. such a contention into effect.
within the meaning Of the Fourteenth Amend.
ment to the Constitution, which prohibits a a
without due process of law. .
Under the head Of the constitntionality, OF
that legislation. establishing such rates as will
not enable public carriers to earn enough to pay
| the expenses of operation and a fair return upon
| the Investment is repugnant to tie Fourteenth
Amendment; that the question whether the
carrier Of these rights is not. conclusively, a
State question; that the Legislature is not the
lawful in these matters, that teing the province
OF the Judiciary, whose duty 1t Is to say what
1SGisls at On. . either STATE tau % Or me Ee fsns is repus-
As TO the merits Of the case at bar the opin.
ion says that the evidence, in the record as TO
The operation of the law shows that II II had
been applied to the business OF the roads for tho
years fs9O.si and 90, the three years proceed
would have been reduced 2elf per cont, de.
priving them Of the compensatory to which
and operating their lines, and with one excep.
tion reducing the earnings OF the roads below
operating expenses, and In that one exception
no practical figure In the general result.
Upon the record and argument Justice Har.
Ian says that the court found no reason for re-
versinR the judgment of the Court of Appeals.
but he directs attention to that part of the de-
cree enjoining the State from putting into e.
authorized the State officials to make rates that
would afford proper and reasonable compensa-
emit conditions OF business It could be demon
strated that the rates would afford the COM
State.
lations Of common. carriers to the public and
their respective rights were set forth. The
sSs9I Idss. toe ior f fSeir o ssia' be soadf e ees loPfiysIis
for the besneas Of the public. Nor could rates
cessivo. capitalization. On the other hand, the
State could not compel the companies to
reasonable interest on the investment, based
upon a proper estimate OF tost and value; IL
Of these questions would always be more or less
The result Of the decision is to knock out the
| schedule of rates sought to be established in
1898. leaving the State at liberty to make
another effort, bringing the schedule, under en-
listing conditions, to a point where the COM
I panies can earn expenses and a reasonable div
idend.
State maximum freight rate case has provoked
much discussion throughout Nebraska. The
leading P9Pu,ists OF the ss state "a are nv Vigorously feSisi
ture must be instantly called and another SINH.
lar bill passed with the unconstitutional feature
eliminated. The law just nullihed was q Popu-
warm contest and has been in the courts ever
As the law was very popular among the farm
ers and the Populists are In full control OF the
81 otai po fGysipm policy n Is quite its''Y iike y T Ffs@e
was unfeiGned satisfaction in local railroad
circles; Some railroaders express themselves
calling of an extra session of the Legislature for
the purpose of %enacting rate laws that could
and railroaders alike tho probability Of an extra
session was earnestly discussed. One politician.
An extra session Is bound to result from this
decision. The state government has fallen
must. Of necessity do somethins further 70 place
itself In, fighting, trim fol. the fall campaign.
Gov. Holcopb Is DESTROYS Of doing something to
that h an extra session, Of tSo Legislature viii
This opinion. though limited at in railroad
headquarters, was not generally accepted there
as the probable outcome of the lost fight against
| tho transportation companies.
At both the Union Pacific and the b. and NJ.
headquarters 1t was the belief that an extra
session at this season Of the year TO attempt any
anti-railroad legislation would be impracticable
and would not be attempted. One railroad Off
DIAL said:
"Ou people are all too well satisfied Just
now to take up a fight against the railroads.
The farmers are getting good prices for their
grain and live stock. and are not going to leave
their plouRhing TO go to Lincoln to start an.
other light against the railroads, which would
turn out In just about the same way as this one
has terminated. II II were in n season Of gen.
eral depression 1t might be different, but as IL Is
now / doubt very much II any extra session of
| the Legislature will be called, and II 1t 10 called
| 4 -k..to ia ,,1t lLal9 m rnaaF yyith sp,naab ~