The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-03-08
MAXIMUM FREIGHT RATE CASE.
FEDERAL SUPREME COURT KNOCKS
OUT NEBRASKA LAW.


Fourteenth Amendment i'm That Ir
Advises Taking Property Withouf
Due PBOcess of Law-Right of a.
State TO Prescribe the Maximum
Rates to Bc Charged in "A state the
Point at Issue-State Claimed Theirs
was No Attempt 10 Control Inter-
state Commerce.
Washington, March 7.--Justice Harlan.
in the Supreme Court to-day, rendered
an opinion 10 the Nebraska maximum
freight rate case, holding the Nebraska
law 90 be contrary to the fourteenth
amendment, in that It advised the taking
OF property without due process of law.
Justice Earlan's opinion affirmed this
opinion of the Circuit Court OF Appeals
for the Eighth circuit, which was against
the maximum freight rate law, and favor
able to the railroads.
This case was instituted to test the va
lidity OF law passed by the Nebraska
Legislature in 1898, prescribing the maxi
mum rates for the transportation or
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 Its enactment to
control interstate freight.
The law was attacked on the ground or
It's constitutionality The case has been
twice orgued in the Supreme Court, Hon.
w. ]. Bryan appearing as one of the
counsel for the state at the last hearing.
Much interest has been manifested in the
decision ever since the case was doclSeteds
because of the probable influence result
favorable to the law would have upon leg
isiation in other states.
In his opinion, Justice Harlan first de~
tailed the facts relating to the passags
of the act by the Nebraska Legislature
In 1893 and then sketched briefly its pro-
visions, saying that among others of its
provisions was one to fix reasonable max
imum freight rates on the railroads OF tho
state and to classify freights.
He then took up In order the points at
issue between the state and railroad COM
panies. He quoted a number OF opinions,
and said that in view of the adjudica-
tlons the following principles must be re-
garded as settled:
/. 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 it's. jurisdiction the equal priveges
of the state,
2 State enactment or regulation made
in the authority Of a state enactment, es-
tablishing such rates for the transporta-
tion of persons or property by railroad as
viii not admit of carrier earning ouch
compensation, as under all the crcum-
stances, Is just to IL and to the public,
would deprive such carrier of It's property
without due process OF law, and deny to
Il the equal protection of the laws, and
would, therefore be repugnant TO the
fourteenth amendment of the constitution
of the United States.
3. While rates for the transportation OF
property and persons within the limits q {
q state are primarily for Its determination.
the question whether they are so unreason-
ably low as TO deprive the carrier of ITS
property without such compensation as the
constitution secures, and therefore without
due process OF law, cannot be conclusivclv
determined by the Legislature OF the state
or the regulations adopted under its au-
thority, that the matter may not becoms
the subject of judicial inquiry
This last proposition, Justice Harlan
remarked, covered the case In point. He
animation into the effect OF the enforce-
ment OF the rates prescribed upon the bus
iness OF the different Nebraska lines
showing the reduction to amount TO 20 so
| per cent. for the years 1885, 1892 and 1893.
| The result was to show that each of the
roads involved would for this period have
conducted their business at a loss with
only one or two exceptions, and those for
only a short while.
''rhe idea that any legislature state or
federal, can concluslvely determine for
| the people and for the courts that what
| it enacts I'm the form of law, or what It
authorizes Its agents to do, Is consistent
with the fundamental law, is in opposition
TO the theory of our Institutions"
1t had been contended that the state OF
Nebraska could legally require local
freight business to be conducted even at
an actual loss, IL the company earned on
| It's interstate business enough TO give it
| just compensation in respect of its entire
line and all its business. interstate and do
mestic The court did not accept this
| view, Justice Harlan saying: I'm our iude-
ment It must be held that the reasonable-
ness or unreasonableness of rates prescrib-
| ed by state for the transportation OF per-
| sons and property wholly within its limits
must be determined without reference to
the business Of an interstate character
| done by the carrier, or to the profits de-
| rived from that business The state cannot
justify nnreasonably low rates for domes-
| tic transportation, considered alone, upon
the ground that the carrier is earning large
| profits on its interstate business, over
| which so far as rates are concerned, the
| state has no control. Nor can the carrier
! Justify unreasonaby high rates on domes-
! tic business upon ground that only In that
way can It meet losses on its Interstate
| business"
Chief Justice Fuller and Justice Nc
| Kenna did not participate in the hearing
| or In the decision.