The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1907-07-11
ROADS MAKE PLEA
AGAINST new RATE
ASK FEDERAL COURT TO ISSUE
RESTRAINING ORDER.
DO NOT MEET WITH SUCCESS
Judge Mcpherson Opens Court Next
Monday and II Is Probable that
the Case VIII Come Up at
that Time.

Deputy United States Marshal Geo.
Bidwell was In Oskaloosa this week
to serve notice on General Counsel
@. w Sewers Of suit In federal
court by the stockholders against the
management Of the Iowa Central Rail-
way company. The stockholders claim
that the new Iowa rate law is unjust,
unfair and unreasonable. and they
ask an injunction against 1t.
Henry w. Poor and Henry v. Poor
of New York and William N. Phoenix
of New Jersey brought the action
against the Iowa Central. They are
members of H. ". Poor g. Co., who
own 100 shares Of the Iowa Central
stock. The Iowa Central & Western
Railway company is also made par
ty to the suit.
William Shillaber of New York Is
the complainant in the case against
the Minneapolis G. st. Louis AMI the
Des Moines & Fort Dodge, from
which the Minneapolis G. st. Louis
has leased its lines in Iowa He
owns 1858 shares Of the Minneapolis
& St. Louis stock.
Written Requests. ..
In both cases the compliments set
out that they made written request
of board of directors of their re-
spective companies to test the valid
ity Of the new law in court. The
boards passed resolutions refusing to
comply with the request. The com
plants assert that the suits are not
collusive ones to confer on the court
Jurisdiction in cases of which it could
not otherwise have cognizance.
Both petitions maintain that the
new Iowa rate law is contrary to the
constitution of the United States and
that 1t is confiscatory. The rates,
fares, charges upon all business and
management of the roads are subject
only to the control of congress and
the Interstate Commerce commission,
the petitions aIlege.
The Iowa Central Is Glass A
road earning over $4,000 per mile
and the law fixes its maximum pas
senger rate at two cents per mile.
The Minneapolis & St. Louis is al
lowed to charge rate of two and one
are between $4,000 and $4,000 per
mile. 1t is included in Class B.
The petitions set out at length the
disastrous results that woul' attend
putting into effect the tariffs provid-
ed by the new statute. In the case
of the Iowa Central it is claimed that
IL the two cent rate goes into effect
the gross earnings from the trans
portation of passengers would be de-
creased by $10O,213.5S, and would
leave no income whatever on the
earnings from passenger business.
The ROAD has never earned to exceed
81 per cent upon its actual value and
for many years II was less than that,
the petition states. II is further
claimed that II the business in Iowa
Is alone considered the road does not
receive aaEeyFlue equal to cost of
operating. its, lines in this state. For
the fiscal year ending June 80, 1906,
the Iowa Central only mad a surplus
for dividends OF s237,442.20 on cap
italization Of $14,199, 454.s2, according
to the petition. The total passenger
earnings during the year were $4S1,-
1926. Both petitio~s claim that dur
ing the past few years the cost of
operation has increased greatly, wag.
es. equipment and taxes all having
advanced -ta "a $50
Does Not Pay Big. a#
Mr.. Snillibar, in hts petition, states
that the Minneapolis & st. Louis has
never earned more THAI Eat per cent
on the actual cost The passenger
earnings for the fiscal year ending
Juae 80, 1906, were s16,56s.7s, and II
the new rate Is put into erect that
amount will be decreased by $208,511,
he declares The amount left for div
idends last year after paying all ex-
penses was $416.O29.95. tsf s
Inc present passenger rates are not
high or unreasonable and are not
even yielding affair return on the
investment, 40 the petitions claim.
1t is further stated that IL the lower
rates go into effect the property will
be confiscated and the stockholders
will be deprived of their possessions
without due process Of law, which Is
contrary to the constitution and laws
of the United STATES. 1t Is also claim
ed that the cost of transporting pas
seagers within the state of Iowa Is
greater than the cost of interstate
trafic which moves for longer dis
tances. and this is given as another
reason why the rates should not be
reduced,
The case will come up before Judge
Mcpherson in Des Moines on Tuesday.