Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1907-09-19
RAILWAY PROFITS
ARE EXCESSIVE
STATES ATTORNEY OUTLINES
DEFENSE IN RAILWAY RATE
CASE.
new RATE NOT CONF|SCATORY
STATE TO PROVE THAT 2-cENT
RATE AND COMMODITY RATE
ARE REMuNERATlvE.

/ AXE EMOlNEnH Ils6s
St. Paul, Special. - Thomas D.
| O'Brien, special counsel for the state
In the injunction proceedings brought
by railroad stockholders to restrain
the operation of Minnesota'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 state. He
took up the evidence to analyze 1t and
| demonstrated that the reductions are
not confiscatory.
MI. O'Brien reviewed first the
states demurrers, which deny the ju.
risdiction of the court, the right to en-
| join state officers or the suficiency 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 eSorbitant.
1--WE claim" said Mr.. O'Brien, chat
there being no diverse citizenship, this
court has no jurisdiction.
I'VE claim, second, that the railway
commission, not 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 the
! ninety-fourth equity rule.
| Is Action Against State.
Fourth, that this is an action
against the state and is in opposition
to The federal constitution.
Fifth, that the bills are multifari.
GUS
I'VE insist" continued Mr.. O'Brien,
that an interlocutcry temporary in.
Junction will not issue because of its
effect 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 will 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 non-remune rative
service, but had placed railroad Off
Gals 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 means of the masses.
Not Deep Cut.
The reduction in passenger rates
from 3 to cents mile, declared Mr.
|O'Brien, is not nearly so savage cut
as 1t appears on its face to be-. II
does not mean an actual cut Of SO 1-s
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 spe
cial privilege Of free transportation
there was a considerable class who
paid less than cents a mile. All Of
these must now pay the regular 2-cent
rate, and the result is, as shown by
ftheir own figures, that the actual re
lceipts from passenger traffic is nearly
as great as it was before the 2-cen1
law went into effect.
Figures Compared.
The total receipts from passenge,
traffic OF the ten roads involved II
these suits for May, 1907, the frs
month under the operation Of the
2-cent passenger law, said Mr.. O'Brien
was 1928. 207.5 50. The receipts 70,
June. 1907, were 81, 49,, 1881. II. while
the receipts for June, 1906, were
i Sl,zl6,715.91 and the receipts for MAY
1906, were $949,453.90. These figure,
are taken from the reports to the rail
road and warehouse commission.
Mr.. OBrfen contended that The
freight rates charged BY the roads arr
Unequal as well as unreasonable.
He maintained that the legislative
rates, as compared with average ex
isffas rates, were not on the whole I'M
favorable to the railroads. and that il
some instances the maximum Of thu
legislative rates are even higher thar
those now In existence. 5#s A.
Asian instance Of inequality II
rates, MI. O'Brien quoted the rates 70,
cattle, hogs and sheep in double-decl
cars. Some roads have different rates
for each Of these commodi ties, while
on other, they are all classed at thu
same rate. When the co,,rf snd in,,rr ~