Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-03-03
READY FOR TWO-CENT FIGHT
Attorney General Thompson Holds the Law
is Bnfofcibls.
RAILROADS AGAINST THEMSELVES
In Addition Reduction in Rates only
Affects Fifteen Per Cent of the
Earnings of the Rail-
roads.
AEON a STAR correspondent.l

LINCOLN, March 2-(special.) -Should
the allied railroads Of Nebraska enjoin the
enforce nent OF the 2-cent passenger rate
pill which will become a law shortly, as
they have intimated they intended to do,
they will find the legal department Of state
ready for the fray. In answer to an In
duiry from Senator George wiltse of Cedar
county as to whether the law Is valid and
can be enforced, Attorney General Thomp-
son went on record emphatically that It
could be. Mr.. Thompsons opinion is as
follows:
In reply to your inquiry in regard to the
2-cent passenger rate bill, my opinion Is
Assuming that the constitutional require
ments pertaining to its passage have been
complied with; It Is my judgment that the
bill Is a valid act of legislation. and can
be enforced. I understand the only obtec-
ton urged against II is that the rate fixed
respect to some OF the weaker lines, be
nOncompensatory. 1t may be that the en-
tire passenger traffic of the state, stand
Ing alone, Is noncompensatory AS to that
! do not know IL should be borne in mind
however, that the transportation Of pas
sengers constitutes, among other elements,
only email factor in the earning capacity
of the railroads. In determining whether
q railroad is receiving remunerative COM
factors must be considered together. The
carriage of the mails, Of express, and of
freight are by far the most important fac
tors
From showing made to the legislature
by representatives of the railroads of the
state, II is made TO appear that less than
is per cent of the earnings OF the roads
arises from the passenger traffic while over
s. per cent Of the earnings comes from
other sources. The reduction provided in
the bill is only one-third OF the previous
rate charged, or reduction OF 331s per
cent Of Is per cent. which is only ; per
cent. In other words, OF every dollar taken
In nv the railrOadu from all less
than is cents comes from passenger bust
ness under the old law, and II this Is cents
~ reduced 8 cents by the new act, then
the total reduction is only cents on the
dollar.
More Than Former Voluntary Charge.
Whether the 2-cent rate bill will deprive
the railroads OF fair compensation for their
services depends upon business conolLlon.s
At that time there will be no other statute
In force regulating rates, and the railroads
whatever is necessary to make their entire
service compensatory. 1t will therefore be
impossible to show that the 2-cent passen-
ger rate will be non-compensatory, because
the passenger business constitutes but one
element OF their earning capacity.
Beside, the 2-cent fare bill does not re-
duce the average rate exacted by the lead
ing railroads of the state. During the
year 1875 the average passenger rate OF
the Union Pacific in Nebraska was 1.SSS
cents mile. Before an open meeting OF
the railroad committee Of the senate at the
sentative of the Union Pacific Railway
company made the following statement,
which was subsequently placed on the
desk OF each senator:
The average rate per mile per passen-
ger received on all passenger business on
the Union Pacific railroad in the state OF
Nebraska for the year ending June 80, 1906
was but l.SSS cents per mile. II a maximum
rate OF cents 10 enforced, we will not
receive anything like cents per mile pei
passenger; that is. II we continue to handle
our business as we do today"
According to a Burlington representative
the average passenger rate during 1906 fol-
that road was tribe less than that OF
the legislature Is, therefore, higher than
the average rate voluntarily charged by
some OF the roads themselves during 1906.
Experience teaches, however, that a re-
duction In passenger rates does not neces-
aarily lessen the earning capacity of q
creqses the volume OF traffic. B.
This 2-cent passenger rate bill is almost
the unantmouS expression OF the entire
membership OF the legislature, and through
majority of the people OF the state. re
peat that firmly believe the provisions o.
the bill are enforcible. and / shall d.
everything in my power as the law office
OF the state, to put IL into effect.
ONCE for state Board of Health.
At a meeting of the State Boari o
Heath held yesterday In the office Of tn
governor II was decided that the secretar!
10 the state board of secretaries shoul,
ma'-tAin an office at Lincoln and in tn
of,ra keep the records relating to vita
statistics a clerk is to be employed b,
the secretaries to attend to this business
Heretofore these statistics have been KEEP