Omaha daily bee., 1907-06-16
Railroad Attorneys Insist that Fed.
eral Order Has Precedence.
HADLEY APPEARS FOR THE STATE
Attorney General Says No Federal
Questions Are Involved.
STATE CAN MAKE IT'S OWN LAWS
Railroads Voluntarily Begin Business
Within Its JurisdictiOn and
Must he hound by lite
Statutes.

| KANSAS CITY, June i5.-Tudge Smith
Mcpherson, in the district court here this
afternoon heard the arguments both
of the state and the eighteen Missouri
railroads involved in the actions concern
ing the enforcement OF the two cent pas
senger fare and the maximum freight rate
| acts.
Herbert s. Hadley, attorney general OF
Missouri, who arrived this morning from
Jefferson City directed the case for
/ the state and was assisted by John c.
! Kennish, assistant attorney general and
r. W. Lehman of St. Louis, and SAN
ford Ladd of Kansas City, special counsel
for the state. Mr.. Hadiey held a con-
ference this morning with the states coun-
sci and mapped out their plan of action.
Attitude or Railroads.
Frank Hagerman, counsel for the rail-
ways, outlined their position as follows:
The Minnesota, Texas, North and South
Dakota rate cases have established the
law to be that while the legislature may
that they shall be fixed in such reason
able sum as to insure reasonable return
is constitutional and of It the railroad com
! panles cannot be deprived. In Fits VS..
McGhee. l72 U. s, 5i6 the supreme court
! held that II a maximum rate law simply
made a violation thereof crime and no
officer was charged with any special duty
i
/ Injunction would not lie but the validity
| of the law would have to be contested IN
a defense IN criminal proceeding: This
J the reduced rate and tine railroads II sue
cessful could not recover i back, Il en-
! Joined the court would refuse security 10
refund to passengers II the state finally
prevailed
Refers to Law of 1908.
! In 1906 the legislature OF Missouri passed
a maximum freight rate BILL to enJoin
which railroads OF the state filled bills,
obtained temporary injunctions and took
testimony, the cases being set for before
its session in 1907 It repealed the 1905 law
except as to penalties and undertook to
to the extent that the governor in his spe-
cial message indicated that he thought they
mum passenger rate bill reducing the pas
senger rates, from cents to 2 cents, at
could only be psnforceS ~ by Suf tha iCrm cTi, tnat
and the enforcement thereof could not be
en1oined pending hearing as to its un-
The railroads presented an application to
NE an amended and supplemental bill In
question or the return to which the rail-
road companies were entitled was pending
In the federal court, and while that was 30
no legislature could pass any law to in
teretere with or prevent the determination
OF that question.
Refers to Procedure,
Besides this there are many specJal dut,e.
railroad mi
sloners and attorney general in reference 10
passenger rates. The penalties which ac-
crue are required to be specially collected
judges and under the law passengers have
civil remedies. Therefore besides making
the railroad commissioners and stforrass
general parties defendant the county iuds,ass
and county treasurers are also named AZ
Wen as certain passengers who travel lipon
upon the theory that an Naturalization ~
thelr rights can be determined In this case
Notice having been given OF the applica-
uon Tor leave TO 1le the amended and sun
Elemental bill, restraining order was
asked against the defendants pending a
hearing, the court desiring to hear arR1i-
ments thereon of It's own motion enfe1sd
an order maintaining the status quo bv en-
Joining the railroad companies from putting
In the rates pending the determination of
the suits. "
Position OF the stnte,
Mr.. Hadley, IN opposing the application
OF the railroads for leave to file a supple
mental Dill asking for a temporary IN
junction, RESTRAINING the board of railroad
commissioners and himself from ensorc-
ing the maximum freight law and the
two cent passenger law, enacted in 1907.
said in part;
The right OF the complalnants TO file =
supplemental bill in this case goes directly
to the question OF the Jurisdiction ~ tbs
state or federal courts. '"e
The people OF the state of Missouri IN
their sovereign capacity, have fixed GER
tain maximum freight rates and a two
cent passenger rate. Upon Thursday and
souri, Issued a temporary restraining order
on the application OF the state enioin
ing the railroads from refusing to com
ply with the provisions Of these laws.
The railroads enJoincd have voluntarily
come within the state Of Missouri and on
gagged In business here. The courts ~
SassS Missouri are nov ready 70 proceed to
TO whether these laws should or should
not be enforced But the railroads are
asking that the state officials be en-
employe OF the several railroad companies
from enforcing the law OF the state. The
turisdiction Of the state courts in this
tion OF the federal courts and IN order
TO maintain, without controversy, Is our
dual system. Of state and federal SOW
eriegnty the Jurisdiction Of the state courts
should be recognized and respected.
II compliments are 70 be granted the
order asked for, the legislature OF SOW
lage by the federal courts Such con-
dition would be destructive OF our system
and form OF goyernment and overthrow
states under the provisions OF the federal
Jurisdiction.
ST LOUIS, June ia special 70 the
Post-Dispatch from Jefferson City says
c. W. Thomas, a prominent business man
OF this city. unexpectedly got the beneht OF
the 2-cent rate law last night by riding
free on the Missouri Pacific railroad from
St. Louis He said TO the conductor: II
tender you in the presence OF these wit
nesses the fare from st. Louis TO Jefferson
City at the rate OF 2 cents a mile. You can
accept It or put me on"
The conductor. not wishing 10 enter into
a possible legal entanglement permitted
Thomas TO ride the l5 miles free.