East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-12-10
NEWSPAPERS AND RAILROADS
MAY "sWAP."

Since the passage of the railroad
rate bill last year there has been
widespread discussion as to the effect
of the anti-pass provisions of the law
on newspaper contracts In which ad-
vertising has been given in exchange
for transportation.
1t has been thought by many papers
that this exchange was at an end,
but 1t is probable that the supreme
court of the United States will rule
otherwise.
1t is said that the rate law cannot
interfere with the freedom of con-
tract and that a newspaper has the
same right to give advertising in ex-
change for transportation, that one
farmer has to trade five tons of hay
for a mule colt or to make any other
exchange, of commodities. The
American Press says of the matter:
The supreme court of the United
States may be called on to decide
whether a railroad company may is
sue transportation in exchange for
advertising in newspapers, according
Chicago, Indianapolis & Louisville
| (Monon) railroad. A test case is to
be made in Illinois, or, rather. an
opportunity will be given to the in
terstate commerce commission to
have the courts pass on the commits
sion's ruling that nothing but money
can be lawfully accepted in payment
for transportation.
Shortly after the new rate law
went into effect the question arose as
to whether a railroad could continue
to issue transportation for newspaper
advertising. It came before the COM
mission, and the body decided that
under the law only money could be
accepted.
| The justice of this ruling was not
seen by the legal department of the
Chicago, Indianapolis & Louisville
railroad and George Kretzinger, gen.
! eral counsel, and E. C. Field, general
solicitor, of the road, wrote to the
interstate commerce commission and
gave their construction of the law
backed by decisions of the courts.
They said they had carefully con-
|
ton of the rule and under their con-
struction of the law had entered into
contracts in good faith with publish
ers for the publication of time cards
and other advertisements, such serv-
ices to be paid with a stated sum in
transportation at the rate fixed by
the Monon's duly published tariff,
which in every instance was the exact
equivalent of the agreed price for
publication.
The law. the railroad attorneys say,
nowhere in terms provides that pay
ment for transportation shall be in
money, and it must therefore follow
that the freedom of contract as be-
tween a railroad and an individual Is
precisely the same as between other
citizens. If this be true, they went
on to say, it is difficult to understand
when one does a service for a railway
corporation under a contract made in
good faith and for an agreed consid-
Grafton admittedly fair that theparties
may not mutually stipulate for the
payment in anything but money.
To hold otherwise. they urge, is to
|
particular class which is everywhere
extended as to every other class. The
rule as universally stated and upheld
by the courts is:
What the parties agree shall con-
stitute. payment the law will adjudge
to be payment. 1t is competent for
parties to designate by their contracts
how and in what payment may be
made. It is by no means true that
payment can only be made in money.
On the contrary, it may be made in
property or in services"
The rule as propounded by the COM
mission, the attorneys say, would
mean an anomaly in the law, in that
corporations could do indirectly what
they are prohibited from doing di-
rectly. AS an illustration they say:
1--WE contract for a given advertise
ment for six months at 800, which
is forthwith paid. The publisher con-
currently Herewith buys four 1000
mile books, the price being s100 and
the price just received for the adver-
tisement he turns back to the COM
pany for his mileage books. Whether
therefore, the transaction is consum'
mated in one way or the other the re-
suit is precisely the same" %
The interstate commerce commits
sion did not reply to the letter of At
torneys Kretzinger and Field, which
was dated October l, and Presiden
McDoel of the Monon road has ISSUED
orders, It was said, to the passenge
department to continue the makini
of contracts with publishers of news
papers and to issue transportation II
payment for equivalent advertising.
1t is expected by the railroad tina
e the interstate commerce commission
b will adhere to its ruling and call o.
the Monon railroad to explain 4
court, thus taking the first step to
ward a construction by the suprem
court of the United States of the com
-, missions Interpretation of this pre-
vision of the new railway rate bill.