Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-07-31

courts.
If the rate law does go before ths
courts, one of the most important doc
trines which the courts viii be called
! upon to affirm or deny, is whethe,
the determination of what constitutes
a reasonable passenger rate from the
railroads point of view may rest upon
the profits derived in general from
all business, freight and pass sngel
combined. If the courts should de
/ termine that the question of whether
the railroad is being compelled to put
into force a passenger rate which is
confiscatory must be settled by TAX
ink into account only the returns
of the passenger traffic, then the law
will probably be found to be uncon.
stitutional.
important Doctrine at Stake.
Should the courts. however, declare
that the two-cent rate for passenger
service is lawful so long as the rail.
road corporation IS receiving a rea.
sonable return on its investment. fig.
uring both passenger and freight
| earnings, then the doe .rine an.
nounced by the commiss,ou in its re-
port on the passenger rate cases viii
be nullified. The commission at thai
time promulgated the doctrine that
1t Is improper fer ore
service to be compelled to carry along
the other branch. if it proves unpro
fitable. The commission said that IT
would not be justified in reducing the
passenger rate to two cents a mile
simply because the railroads could
earn enough on freight traffic to make
up for possible deficit in the passen.
ger service.
The establishment of this rule
might in the long run, lead to mis-
chief. If the application of this rule
were proper in the case of the Cen.
tral, for instance it would necessar
lily become proper for all the roads
whether they were in as unfortunate
position respecting their passenger
traffic as the Central or not. The
rule would justify the CentraPs re-
coupling its loses on passenger ser.
vice by imposing additional burdens
upon the freight traffic. If the Cen.
tral Goes this, its competitors will be
justified in conforming their tariffs
schedules to its changes or there
would result discrimination. In this
way the scare" of extra burdens on
the shippers for the benefit of the
smaller number of travellers would
be realized.
What if the Roads Win.
Another important legal PROPOSE
ton which is preached again and
again in the discussion of the ulti.
mate fate of the rate law is: What
will be the effect of an adverse deci.
sion in the courts on the two-and-a
haif-cent order of the commission? 1t
is Pointed out that the new rate law
just signed. establishing a two-cent
fare, supersedes the order of the CON.
mission and amends the old rate law
providing for maximum passenger
rate of three cents. II the new law
should become invalid, lie uestion
arises whether the old three cent law
remains in force or whether the or.
~er Of the commission is revived.
1t is pointed out that the two,and.a.
haif-cent rate came through an order
OF the commission and that il was
superseded by statutory enactment by
a TWO cent law. 1t is then contended
by some attorneys that in case the
new statute is inyalidated the old
statute which it amends is revived IN
full force, and the commissions or.
ders, which were not legislative enact.
ments in the true sense of the word,
would fall.
Big Roads Will Not Act.
There is fairly general belief
that among those who have followed
the progress of the rate law that the
larger lines in the state will not care
to litigate because their purpose is
best subserved by remaining passive.
1t is believed that in the first place
they prefer to see the legislature and
the commission pulling against each
other 80 as to deal an effective blow
TO regulation. IN the second place
they realize that they have more to
lose than gain by assisting the
smaller roads in fighting the new law.
Though the Central, for example, may
succeed in showing the law to work
hardship upon Itself it would not be
settled that the big lines cannot az
ford to put in two-cent fare and the
commission could then step in and
correct any mistake of the legislature
by ordering two cent fare on those
lines which they find can earn enough
to grant the lower rate. Money and
time would then have been expended
by the larger roads simply TO relieve
one of their less important competit
ors from a law which works hardship
on that one but which, in the final
analysis, would be found to be emin.
emily fair If it had been applied only
to themselves
All these ramifcations OF the sub.
ject of two-cent passenger rates are
being threshed out in and about the
capitol since the executive sigsed the
bill. The most sanguine believe that
there will be no contest at all, and
some incline to the belief that there
will be no move on the part of the
cornora ffnps until tho, ap1 a,,S ba,r