The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-23
TEST RATE RULE.
United States Supreme Court to
Pass on New Law.
Legality of Advertising for
transportation.
WILL MAKE TEST CASE
Exceptions Taken to Ruling of
Interstate Commission.
Holds Advertising at Agreed
Price Price Equivalent to Cash.

Chicago, Nov 23@The supreme
court of the United States is to be
asked to pass upon the question wheth-
er a railroad company can issue trans
portation in exchange for advertising
in newspapers. A test case is to be
made in Illinois or rather an oppor-
unity be given to the interstate COM
merce commission to have the courts
pass upon their ruling that nothing but
money can be lawfully received or
accepted in payment for transporta-
ton. Shortly after the new rate law
went into effect the question came be-
fore the commission and that bcGy
decided that only money could be ac-
cepted- The justice OF this ruling was
not seen BY the legal department Of
the Aonon railroad and George kret-
Finger. the general counsel, and E. c..
Field. the general solicitor. wrote to
the interstate commerce commission
and gave their construction of the law
backed by decisions of the courts.
Advertising Equivalent to Cash.
They said they had carefully consid-
cred the law before the PRONUNCIATION
Of the rule and under their construction
of The law had entered into contracts in
good faith with publishers for the pub
HcaIiOn of time cards, etc, and for the
payment of such services in transpor-
duly published tariff, which in every
instance was the exact equivalent of
the agreed price for publication The
law they said, nowhere provides that
payment for transportation shall be in
money and it must therefore follow
the freedom of contract as between
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 railroad corpora
ton under a contract made in good
faith and for an agreed consideration,
admittedly fair, that the parties may
not mutually stipulate for the payment
in anything but money. To hold 9th er-
wise, they urged, is to deny the free
dom of contract to a particular class
The rule as universally stated and up
held by the courts is:
Ruling Of Courts.
What the parties agreed shall con-
stitute the payment, the law will ad-
judge to be payment 1t is competent
for parties to designate by their con-
tracts how and in what, payment may
be made. 1t is by no means true that
payment can only be made in money;
on the contrary, it may be made in
property or / nservices- The fnhibi-
ton they added against charging
greater or less or different comp pensa-
ton relates alone to a difference in
the "esta blished rate and not to the
manner Of making payment.
The evil which the act is intended to
remedy, it was urged, is that a rate
published should not mean one thing
to one man and another to another
and the law is intended to make it
plain that the published rate in fact
as we'll as form shall mean the same
thing to all men, It would be i'm
material. therefore in the accomplish
ment Of this end whether the rate
should be paid IN money or in actual
services performed, If the services
-
rule as propounded by the commission
they said would mean anomaly in the
law. In that corporations could do in
directly what they are prohibited from
doing directly. AS an Illustration they
said:
eve contract for a given advertise
ment for six months at 500 which is
forthwith paid. The publisher con-
currently Herewith buys four 1000
mile books the price being 800. and
the price just received for the adver-
tisement he turns back to the company
for his mileage books. Whether there
fore the transaction is consummated
in one way or the other, the result is
precisely the same"
Object Only TO Prevent Subterfuge-
It is not believed the attorneys said,
that the commission intended either to
restrict the right to contract or pre-
scribe the particular manner of per-
forming contracts; but on the contrary
that the sole purpose OF the commission
is to scrutirize contracts and to see that
they are not merely devices or subter-
fuges to evade the law.
The interstate commerce commission
did not reply to the letter of Mr..
Kretzinger and Mr.. Field. which was
dated October and President McDoel
Of the Monon road has issued orders to
the passenger department to continue
making contracts with publishers OF
newspapers and to issue transportation
in payment for equivalent advertising
having made a ruling on the subject
viii likely adhere to il the Monon rail-
way sooner or later be notified to ap-
pear and this viii be the first step
toward a construction by the supreme
court Of the United States Of the COM
missions Interpretation Of the new rail-
way rate bill. AS the publisher who
accepts sportation is also liable un-
der the law. one who accepts transpor-
tation from the Monon may be also ci-
ted to appear in order that both parties
to the contract may have the question
of their amenability passed upon at the
same time.