Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1900-01-25
NO TWO CENT RATE
State officials Decide Not to
Prosecute the Railroads
Further.
SUPREME COURT DECISION
Rendered in Michigan Case Shows
Vermont's Mileage Law of 1893
Would be Declared Unconstitu-
tional-Deemed Unwise to Put
State to Further Expense,

ter j. ID. Miller and A. Il. Watson, Lieut. |
Gov II. {. Bates and f. l.. Fish. ESQ. |
held a conference here to-day in relation
to the mileage book cases brought by
stockholders OF the Rutland Railroad com
pany and the st. JohnsbUvy and Lake
Champlain Railroad company in which the
railroad commissioners and the states at
torneys of the counties through which
these roads pass are made defendants.
These suits were brought because of the
passage of an act at the last session Of
the legislature which provided that nile
age books should be kept for sale at the
principal stations roads OF certain
class with coupons for 1OJo miles. at the
rate of two cents per mile, and good in
the hands of any person presenting the
same for fare passage on tho road Issuing
the same. a penalty was Prescribed for
an nfraction of the law and the States
attorneys of the counties Though where
the roads had principa stations were Civ
err authority to prosecute offenscS there
under.
TWO suits were brought soon after the
! passage of thcact of 1893. one by the stock
holders of the St. Johnsb bury and Lake
| Champlain railroad company and one by
the stockholders of the Rutland railroad
company. to enjoin these railroads from
| complying with the law. In both these
suits he railroad commissioners were
maze parties defendant and in the former
the States attorneys of the counties Of
Caledonia, Essex, Lamoile and Franklin
were made defendants and in the latter
the States attorneys Of the counties Of
Chttenden, Addison, Rutland. Windsor
and W.Cdham. These suits were brought
before Judge Wheeler in the United States
Circuit Court and injunctions were asked
for against the respective Cailroad compan-
les and the State officers. AT "a hearing
held al Brattleboro in January. 1899, Judge
Wheeler made an order, pending the suit
enjoining the St. Johnsbury road from
Keeping on sale the mileage books. and at
the February term, 1889, he enjoined the
Rutland from keeping the books on sale
but each case he declined to enjoin tho
State officers upon the ground that as
officers of the State they could not be pro-
ceeded against in a suit of the kind rs
the suits as to them were against the
State in effect.
The states attorneys of the counties
through which the st, Johnsbury road
passes answered the bill Of the stockhold-
ers and asked to be dismissed for lack of
the courts jurisdiction. The railroad
commissioners answered the petitioner $
hill and denied the claim OF the stockho,d-
e,S that the company could not afford to
carry passengers upon tickets such as the
actof 1898 provided for. Lieut.-Gcv Bates
was assigned to defend the State officers
IN this case by the governor and with
Chairman Foster of the railroad commits
sion took care of the states interests
therin. In the Rutland's case the States
! attorneys demurred to the bill of the
stockholders upon tho ground of lack Of
jurisdiction and the railroad commission
answered the bill. In this case Mr.. Fish
was assigned by Gov. Smith to defend tbs
State officers and with Mr.. Foster pre-
pared the case for the State
No testimony has been taken in either
case and a hearing on tire demurrer OF
the states attorneys of the counties
through which the railroad passes and on
the motion to dismiss by the states at
torneys Of the counties through which the
st. Johnsbury road Isasses Is now pend
ing.
Alter the above suits we're brought on
the nth of April, 1884, the Supreme Court
of the United States in the case OF Lake
Shore and Michigan Southern Railway
Co. VS. Smith decided an act OF the Legs
lature of the State of Michigan, similar TO
the act of 1895 to be unconstitutional. MS
act provides that one thousand mile tick
cts should be kept for sale at the princi-
pal ticket offices of all railroads of GER
tain class at price not exceeding wv III
the Lower Peninsula and so in the upper
Peninsula. The court held this act 10 De
discriminating between those who could
and could not purchase the mileage books
and declared the law 10 be in conflict with
the constitution of the United States. Inc
grounds of the decision are made clear by
, the language of Mr.. Justice Peckhaul'
who deiN cred the opinion:
The question is presented in this case
whether the Legislature of a State. hav-
ing power to fix maximum rates and
charges for the transportation or persons
and property by railroad companies, has
also the right, after having fixed maxi
= mum rate for the transportation OF pas
sengers to still further regulate their al
/, fairs and to discriminate and make an
, execution in favor of certain persons, and
+, give to them right OF transportation TO!
a less sum than the general rate provided
by law.
, 1t is said that the power to create this
exception is included in the greater power
, to fix rates generally: that having the
,, right to establish maximum rates, itthere'
fore has power TO lower those rates in GER
tain cases and in favor of certain individ'
. uas, while maintaining them or permit
ting them to be maintained at higher
rate in all other cases, 1t is asserted also
. that this is only d proper and reasonable
regulation.
. 1t does not seem to us that this claim Is
we'll founded We cannot regard this eX
. ceptional legisla ton as the exercise OF {
!, Lesser right which is included in the great
er one to fix by statute maximum rate!
u for railroad companies. The latter is
power to make a general rule applicable
in all cases and without discrimination IL
. favor of or against any individual. 1t /.
!, the power to declare a general law upoi
= the subject oil rates beyond NHlCn tn'
= company cannot go, but within which +
. is at liberty to conduct Its work in sucl
maruer as may seem to 1t best suited
for its prosperity and success. This is ,
U very different power from that exercise,
in the passage of this statute The act /!
U not general law upon the subject %
rates, establishing maximum rates whici
the company can in no case violate. IN,
Legislature having established such max
imum general law now assumes to in
terfere with the management Of the com
pany while conducting it's affairs pursu
, ant to and obeying the statute regulating
rates and charges and notwiths tandinl
such rates it assumes to provide for dis
Z elimination. an exception in favor of thos'
y who may desire and are able to purchas,
q tickets at what might be callyi wholesal,
= rRtes-a discrimination which operates IL
: favor of the Wholesale buyer, leaving tn,
= others subject to the general rule.
The power of the Legislature to enact
= general laws regarding company and it,
o affairs does not include the power to com,
o pei 1t to make an exception ian favor OF
1 some particular class in the community
D at less sum than it has the right &c
= charge for thsse who are not fortuna Il
enough to to be members thereof. This
Is not reasonable regulation.
| If the Legislature can interfere by Iii
recting the sale of tickets at less than the
generally established rate, Il can compe
r the company to carry certain persons OF
= classes free II the maximum rates are