Omaha daily bee., 1898-03-08
HISTORY of THE CELEBRATED CASE.
Mn ximum Rnte LAW One of Nebrasl<a's
Most Interesting Suhiects.


Probably the most interesting chapter Of
Nebraskas legislative history is chat which
concerns the maximum rate case, Just de-
cided by the supreme court of the United
States. 1t has afforded food for political dis
cusslon for many years. was the direct cause
OF the moral death of one senator and the in
direct cause of the physical death of an
other. and has been the theme Of one of the
most important suits in equity ever argued.
Early in the session of 1891 the popuists
having majority in the legislature, a max
imum rate law was introduced in the house
by Fred Newberry Of Hamilton county. 1t
was an exact copy Of the Iowa classification
and schedule, the only difference being a few
slight changes in phraseology made neces-
sary by local conditions. After series of
sensational events the bill passed both
branches OF the legislature. reaching the desk
of the chief executive. Governor James E.
Boyd considered the bill fully during the
whole time allotted him by the constitution,
giving hearings to all interests involved and
receiving many long petitions for its ap..
proval. Governor Boyd vetoed the bill and
sent 1t back to the legislature with a
message 1t was passed by the house over
the veto and sent to the senate, where 1t
became the occasion of one of the most nX-
citing and blacklist episodes in the legislative
history OF the state The opponents of the
bill. uncertain of their strength, connived
at the bribery and kidnapping OF Senator
Taylor OF Loup county. He was hurried
away from Lincoln a special engine and
carried to Iowa, being first located at Council
Bluffs, from whence he went to Chicago.
| laylors disappearance left the senate dead
locked under a call which was finally raised
and the defeat of the bill followed, it failing
10 receive the necessary two-thirds vote.
PASSED AGAIN IN 1898.
me agitation in favor of a railroad law
was continued during the campaigns of 1891
| and 1892. When the legislative returns were
canVassed after the election of 1892 Il was
found that the populists had a clear work.
| ing majority in the house, and that the sem
ate was hopelessly divided along political
lines. The populists and the republicans had
each elected fourteen senators. while the
| democrats had secured five thus holding the
balance OF power A maximum rate law was
| pgan introduced in the house and passed. In
the senate its fate was for a long time in
doubt. The railroads maintained a strong
| lobby and used every resource at their COM
| mand to defeat the bill. For a long time It
seemed certain that the measure could not
pass the senate. It's passage required seven
teen votes, and tho populists could muster
| but fourteen Senator Charles Clarke OF
omaha was known to be favorable to the bill
| but he was confined to his bed with a severe
| attack of typhoid fever, and it was hardly be-
| lieved that he could recover sufficiently to
| take his seat In the senate. Senator's Hale of
Madison and Thomson OF Dodge were also
believed to be friendly to the bill but their
| position was uncertain in the absence of
| Senator Clarke. One afternoon, to the sur
| prise of all the opponents of the bill, Senator
| Clarke made his appearance in the senate
chamber. His return settled the fate of the
| bill. In the closing hours of the session the
measure was passed with the votes of Sena-
| tors Clarke. Hale and Thomson. Governor
Crounse. a republican official, attached his
| signature in approval, and it was law, ef-
\ fective after the expiration Of three months.
| Senator Clarke died shortly after casting his
vote for the bill.
| 1t seemed to be generally conceded that
| the railroad companies affected by the pro-
visions OF the new law would contest its
| execution in the courts; but as the weeks
went by the public received no sign. A
| week before the law became operative how
| ever the B. & NJ. railroad made its first
move by notifying the State Board of Trans
portation that preparatory to recognizing
| the new law 1t would abolish the 5-cent
| diferential so long enjoyed by the jobbers
Of the city of Lincoln and which practically
placed them on an equal footing with Omaha.
| The wholesale men of Lincoln became
aroused and at public meeting raised funds
and employed attorneys to resist the aboli-
| tioD OF the diferential. In the meantime
1t became noised about that the State Board
of Transportation would circumvent the pur-
| pose of the b. G. M. to discriminate, as 1t
was alleged, against Lincoln, by revising the
! classification so as to continue to give Lin
| cOiu lne DEMENT'S OF tEe QlHeTentlal. InlS
purpose of the State Board of Transportation
| II it existed at ALL was thwarted by the b.
& NJ, which applied to the federal court for
| an Injunction restraining the members and
secretaries of the board from making any
| revision in the classification.
| PRESENT SUIT COMMENCED.
| This injunction suit never reached either
| an issue or a determination. Before 1t could
| be taken up bills in equity were filed in the
| circuit court of the United States by the
! stockholders OF the railroads in Nebraska
affected TO have the law adJudged illegal and
void and to restrain the officers and man
| ayers or the railroads from putting its pro-
| visions into effect The state of Nebraska,
| through its attorney general promptly inter-
vened and became party defendant to the
| suits. James M. Woolworth of Omaha was
| the principal counsel for the railroad COM
| panies, while John L. Webster represented
| in chief the interests of the state of Ne
braska. Voluminous testimony was taken on
| both sides and afterward the cases were ar
| gued before Judge David j. Brewer, a mem-
ber OF the supreme court OF the United States,
and Elmer S. Dundy, then federal judge for
the district OF Nebraska, now deceased. The
opinion was against the state of Nebraska
and in favor of the stockholders OF the sew
eral railroads interested in the suit. The
| opinion was an exhaustive one and was
written by Judge Brewer. 1t was announced
| by Judge Dundy and the latter entered the
| decree as prayed for.
The cases were Immediately revived by the
state OF Nebraska and appealed to the su-
preme court of the United States.
In deciding the case Judge Brewers rul-
ings adverse to the claims oil the state may
be summarized as follows
l. The court held that it had jurisdiction
| to grant the injunction as prayed notwith-
standing the fact that the rates were estab-
lished by direct act of the legislature and
notwithstanding the provisions OF the act
which gave any railroad company which