The herald-advance. (Milbank, S.D.) 1890-1922, 1907-09-20
States ATTORNEY OUTLINES
DEFENSE IN RAILWAY RATE
CASE.
new RATE NOT CONfSCAT0RY
STATE TO PROVE THAT 2.CEN1
RATE AND COMMODITY RATE
ARE REMUNERATlvE.

st. Paul, Special. - THOMAS u.
O'Brien, special counsel for the state
In the injunction proceedings brought
by railroad stockholders to restrain
the operation OF M~innesota's rate
laws, spent three days last week argu-
ing before Judge Lochren against the
issuance Of the Injunction. After six
days argument by the plaintiffs, Mr..
O'Brien opened for the stete. He
took up the evidence to analyze 1t and
demonstrated that the reductions are
not confiscatory.
Mr.. O'Brien reviewed first the
states demurrers, which deny the ju-
risdiction of the court, the right to en-
join state officers or the sufhciency OF
the bills.
What State Will Prove.
In a general way he announced that
the state would prove that the mer-
chandise rates and the 2-cent passen-
ger rate are remunerative; that the
present commodity rates are unequal
and unjust, and that the proposed
rates are higher per ton per mile than
the interstate rates now in force. The
state will show that higher net profits
are now earned on local than on inter-
state business, on the companies own
figures and therefore that local rates
are exorbitant.
1--WE claim" said Mr.. O'Brien, that
there being no diverse citizenship. this
court has no jurisdiction.
I'VE claim, second, that the railway
commission, rot being concerned with
the commodity rate law or the 2-cent
fare act. the court will not inquire into
their validity In this action.
Third. that the compliments have
not brought themselves within tho
ninety-fourth equity rule.
10 Action Against State.
"Fourth, that this il an action
against the state and is in opposition
to the federal constitution.
Fifth, that the bills are multifan.
Gus.
I'VE insist" continued Mr.. O'Brien.
that an interlocutcry temporary in.
junction will not issue because of it's
eject to change existing condition,
and. further, that the court will give
no attention regarding the claims In
the matter Of the passenger fare and
merchandise rates, two things which
the roads have accepted Of their own
free viii and which they have volun-
tar1ly put into effect"
The efforts Of the state, Mr.. O'Brien
declared, had been employed to place
the railroads at peace with the public
by settling for them once and for all
many vexatious questions with which
they had to contend.
Some Of the Benefits,
BY abolishing free passes the law
not only relieved the railroads from
the dead weight Of commemorative
service. but had placed railroad OH.
cials where they were no longer pes.
tered with endless applications for
free transportation.
BY penalizing rebating the law had
relieved the railroads from ~cut.throat
competition.
The reduction in rates had stimu.
lated traffic by bringing passenger
rates within the can of the masses.
Not . Deep Cut.
The reduction in passenger rates
from 3 to 2 cents a mile, declared Mr..
O'Brien, is not nearly so savage a cut
as it appears on its face to be. It
does not mean an actual cut Of 80 1-3
per cent. Two cents a mile is really
more than the average passenger paid
under the Scent rate. In addition to
the large number who enjoyed the sp>.
cial privilege Of free Transportation
there was a considerable class who
paid less than 2 cents q mile. All Of
these must now pay the regular 2-cent
rate. and the result is, as shown by
their own figures, that the actual re-
ceipts from passenger trafic is nearly
as great as It was before the 2-cent
law went into effect.
Figures Compared.
The total receipts from passenger
trafhc Of the ten roads involved in
these suits for May, 1907, the first
month under the operation Of the
2-cent passenger law, said Mr.. O'Brien,
was $923.2O7.52. The receipts TO,
June. 1907. were 31,1S7, SS7.17, while
the receipts for June, 1906, were
$1,216. 1888 and the receipts for May.
1906, were 949,453.9 80. These figures
are taken from the reports to the rail-
road and warehouse commission.
Mr.. O'Brien c%ontended that the
freight rates charged by the roads are
unequal az well as unreasonable.
He maintained that the legislative
rates, as compared with average ex-
listing rates. were not on the whole un-
favorable to the railroads. and that In
some Instances the maximum of the
legislative rates are even higher than
those now In existence.
Az al instance Of inequality In
rates. MI. O'Brien quoted the rates for
cattle. hogs and sheep in double-deck
cars. Some roads have different rates
for each Of these commodities. while
on other, they are all classed at the
same rate. When the court adjourned
until Monday morning Nj. O'Brien had
not anishsd his argument