Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1907-09-19
RAILWAY PROFITS
ARE EXCESSIVE
STATES ATTORNEY OUTLINES
DEFENSE IN RAILWAY RATE
CASE.
NEW RATE NOT CONFISCATORY
STATE TO PROVE THAT 2-CENT
RATE AND COMMODITY RATE
ARE REMUNERATIVE.

St. Paul, Special. - Thomas ID
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 I'D the evidence to analyze it and
demonstrated that the reductions are
not confiscatory.
Mr.. O'Brien reviewed first the
states demurrers, which deny the jul
risdiction of the court, the right to en-
join state officers or the sufficiency 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.
1--WE 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
Einety-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.
1--WE insist" continued Mr. O'Brien
that an interlocutory temporary in.
junction will not issue because of it's
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-
tarily 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-remunerative
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 a 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 it's face to be. 1t
does not mean an actual cut Of 33 Ia
per cent. Two cents 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 2 cents a 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 traffic is nearly
as great as it was before the 2-cent
law went into effect.
Figures Compared.
The total receipts from passenger
traffic 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 fol
June, 1907, were s1,1S7, SS717, while
the receipts for June, 1906, were
$1,216,775.91, and the receipts for May
1906, were $949, 453.90. These figures
are taken from the reports to the rail
road and warehouse commission.
Mr.. O'Brien 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
listing rates, were not on the whole un
favorable to the railroads, and that IL
some instances the maximum of tn.
legislative rates are even higher thar
those now in existence.
AS an instance of inequality ia
rates, Mr.. O'Brien quoted the rates fo
cattle, hogs and sheep In double-desi
cara. Some roads have different Pate,
fGT each of these commodities, whil.
on ether, they are all c1assed at tn,
same rate. When the court adjourna.
HRt1 Monday morning Mr.. O'BEien haa
nat finished his argument.