The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1906-12-13
Newspaper Case in Court

the Law-Made Their Contracts
in Good Faith, The Price to be
Paid Being the Same as Charged
Other Passengers.
Chicago, ILL.,, Nov. 26-The Sup
RENE Court of the United States is to
be asked to pass upon the question
whether railroad company can
issue transportation in exchange for
advertising in newspapers. A test
case is to be made in Illinois or rather
an opportunity will be given to the
Interstate Commerce Commission to
have the courts pass upon their rul-
ing that nothing but money lawfully
be received or accepted in payment
for transportation.
Shortly after the new rate law went
into effect, the question arose as to
whether railroad could continue to
issue transportation for newspaper
advertising. 1t came before the COM
| mission, and that 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 MOnon Railroad, and George
kretzinger, general counsel and +. {.
Field, general solicitor, wrote to the
Interstate Commerce Commission
and gave their construction of the
law, based on decisions of the courts
They say they had carefully consid-
cred the law before the PRONUNCIATION
of the rule, and under their cOnstruc-
ton of law had entered into contract
in good faith with publishers for the
publication of time cards. etc. and
for the payment of sue h service agreed
to pay stated sum in transpor-
tation at the rate fixed by the Mon
on's duly published tariff, which in
stance was the exact equivalent of
the law agreed price for publication.
The law, they said, nowhere in terms
provides that payment for transpor-
tatiOn shall be in money, and it
must follow that freedom ofcontract
as between a railroad and an in
dividual is precisely the same rs be-
tween other citizens.
If this be true, they went onto say,
it is difficult to understand when n
service for a railroad corporation
a.ld contract made in good faith
and for agreed consideration admit
teddy fair that the parties may not
mutually stipulate for the payment
in anything but money. To hold
otherwise, they urged, is to deny the
freedom of contract to n particular
class, which, is everywhre extended as
to every other class. The rule uni
versally stated and upheld by the
courts is what the parties agree
shall constitute the payment. 1t is
competent for parties to designate
by their contracts how and in what
payment may be made. 1t is by no
means true and payment can only
be made in property or in service.
The inhibition, they added, against
charging greater or less or dill
ferent compensation relates alone to
a difference to the established rate,
and not the manner OF making pay
ment of such rate
The evil which the act was intend
ed to remedy, it was urged, was that
a rate published should not mean
one thing to one man and another
thing to another, and the law was
intended to make it plain that the
published rate in fact, as we'll as
form, should mean the same thing
to all men. 1t would be immaterial,
therefore, in the accomplishment OF
this end, whether the rate should be
paid in money Or in actual services per
formed, if the services were the equiv
alent of the money. The rule as
propounded by the commission,
they said, would mean an anomoly
in the law in that corporations
could do Indirectly what they are
prohibited from doing directly.
GIVE AN ILLUSTRATION.
As an ILLUSTRATION, they said, "we
contract for a given advertisement |
for six months at 500, which is
forthwith paid. The publisher con-
currently Herewith buys four 1000
mile books, the price being 500 and
the price just received for the adver-
Using, he turns back to the com
pany, for his mileage books. Wheth-
er, therefore, the transportation IL
contaminated in one way or the
other, the result is precisely the
The interstate Commerce Commits
sion did not reply to the letter of Mr..
kretsinger and Mr. Field which was
dated October /, and President Me-
Doel of the Monon road, has issued
orders to the passenger department
to continue the making of contracts :
with publishers of newspapers and
to issue the transportation in pay
ment for equivalent advertising. A.
the Commerce Commission having
made ruling on the subject will be
quite likely to adhere to it the Monon
railroad will sooner or later be mott
fed to appear, and thus will be taken
the first step toward a construction