Los Angeles herald., 1905-12-05
RAILROADS WIN
IN REBATE CASE
FEDERAL JUDGE SAYS HE HAS
NO JURISDICTION
Proceedings Against Missouri Pacific
Santa Fe and others Regarding
Coal and Salt Shipments
Are Quashed
BY Associated Press.

by ABHOclaleu fTebH
KANSAS CITY, Dec. 4.--Judge Johr
f. Phillips, in the United States district
court for the western district Of Mis-.
souri,, today delivered an opinion hold.
ing that his court was without juris.
diction in the cases brought here by
the federal government charging the
Missouri Pacific, the Atchison, Topeka
and Santa Fe and other railways with
giving rebates on shipments of salt in
Kansas and on coal in Colorado and
other products in violation of the FL
kins act. The motion of the railways
to quash the proceedings was granted
On March 25, 1902, at the instigation
of the attorney generals office in
Washington, Judge Phillips granted a
temporary order restraining the Mis-
souri, Pacific the Santa Fe, the Chicago
and Alton, the Burlington and the Rock
Island railway companies from giving
rebates on various products. Last
summer NJ. D. Purdy, assistant attor-
ney general, brought additional pro-
ceedings, citing the officials of the rail-
ways named for contempt, in the alle-
cation that they had violated the
courts order in continuing to give re-
DdlGS. he COHlSllpI were
argued in Judge Phillips court on No
vember 8, when the attorneys for the
railways moved that the proceedings be
uuashed, claiming that the court was
without Jurisdiction.
The grounds of the decision in Judge
Phillips opinion today are substantial
ly as follows:
The original bill of complaint, on
which the restraining order was
granted March 25, 1902, was filed at the
instance of the attorney general of the
United States, predicated alleged viola
tions of the interstate commerce law in
granting rebates on shipments of grain
and packing house products from Kan
sas City to eastern points. This suit
was based on the conception of the at
torney general that the United States
had a right to resort to the United
States circuit court in equity to carry
out the policy of the interstate COM
merce law and to enjoin railroads gen.
orally from violating it. But after the
temporary restraining order was made
and after the demurrer to the original
bill was argued and submitted, the SUI
preme court of the United States, in
the case of the Missouri Pacific Rail-
way company VS.. the United States,
1898 U. S. reports, decided that the
United States circuit court had no jur-
isdiction to grant such relief so when
the restraining order was issued by the
United States circuit court for the
western district of Missouri, the court
was without jurisdiction to make it
and therefore the defendant could not
be held to be in contempt of court for
violating an order which it was without
jurisdiction. to make.
Second, while what is known as the
Elkins act, passed by congress in Feb
ruary, 1908, authorized such a pro-
ceeding by the United States district
attorney of the jurisdiction where the
offense was committed, this act being
passed nearly year after the restrain
ing order of March 20, 1902, had no ret
roactive operation SO as to validate
that order.
The concluding part of the courts
opinion is as follows:
However reprehensible the conduct
of the defendant railroad company Gf
it be as alleged in the transaction)
may have been, or however much dis
posed the court be to compel obedience
to its lawful mandates, 1t Is persuaded
that it is without authority In this pro-
ceeding to draw to it the question in
volved, rightfully belonging to the jur-
isdiction of the United States circuit
courts for the districts of Kansas and
Colorado. This, saith the law, Is per-
petual injunction upon the judge, when
called upon to exert judicial power
which he may not disregard without
standing in contempt of his own con-
science.