Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-07-10
FARE SUITS FARCE,
SAY The LAWYERS
Action of Iowa Central and NJ.
& st. L. in Suing Themselves
Somewhat Amusing
Little Doubt But That Judge Nc
Pherson Will Rule Adversely to the
Complanants-Weakest Road in
State Selected to Make Fight on the
Law.
special to Times Republican.

Special TO Times Republican.
Des Moines July 10--Judge Smith
Mcpherson will rule tomorrow morn
I ing on the 2-cent fare law in Iowa, ac-
cording to his declaration in the fed
eral court yesterday. While there IS
no means OF anticipating his decision
the questions that he asked In court
lead to the supposition that he-Wlli
take the position that the stockholders
of a road have no right to interfere
with the policy Of the directors OF the
road so long as those directors are not
wasting the money or running the road
In plain English language unadorned
by legal phrases, lawyers are saying
that the action of the Iowa Central and
MINNEAPOLIS g. st. Louis in suing
themselves is a farce. In the hrst
place the directors of the road get
some of the leading stockholders OF
the road to bring suit to restrain
them from obeying the Iowa law.
Whether the court decides that the
stockholders cannot interfere or throws
the case out on the ground that 1t has
no standing in his court, will be all one
and the same to the Iowa officials.
Till recently the railroads were
Heading the newspaper men to believe
that there was going to be no test OF
the Iowa 2-cent fare law; that If the
law would pan out in any state, II
would in this one. Then all at once
they picked out the weakest road in
the state Of Iowa and the one most
MeIy not to show a dividend on 2
'usent rate, and started a suit. 1t is the
supposition Of many that their inten-
ton was to get ruling from McPher-
son SAYING they would have to try the
law first and then after three or six
months come in and show that the
road had not made money on the rate.
While Attorney General Byers did
not appear officially in the suit, the
position being taken by Iowa officials
is that the case has no standing In the
federal court. The case is different
from that in Missouri. There is moth
ing to interfere with the orderly work
ing of the machinery of justice in this
state. If the roads do not think that
the rate will pay the thing for them
Ito do is to violate it, and then when
they are indicted under the law and
tried their defense would be that the
rate is confiscatory.
In Missouri the law directed the
railroad commission to promulgate and
enforce maximum rates. The railroads
started suit on the theory that they
had promulgated the rate too low. In
Iowa the law fixes the rate at cents
and no one is enjoined to enforce it. II
the law is violated it is for the regu-
lar machinery of Justice to enforce it
and the difference according to law
yers is considerable in Importance.
At the hearing in the federal court
here yesterday the plaintiffs, the stock
holders, as a last argument asked
Judge Mcpherson that in case he
granted the injunction not to enjoin
the road from using the two-cent rate
between competing points. There was
smile spread over the face of the
Judge and ripple of laughter passed
over the court room at this. Judge
Carr was sure the court did not see
the point and the court was sure that
it did. The crowd in the court room
saw the point to be that the road
wanted itself enjoined from using
two-cent fare because it wasn't re-
munerative but did not want itself
enjoined from using the rate between
competitive points because it was re-
munerative
Judge Carr argued that since the
road had to run its trains any way it
just as we'll carry a few more passen-
gers (between competitive points) at
two cents while the others paid three
cents.
Officials Of the state and others who
are watching the progress Of the two
cent rate matter are calling attention
to the fact that some New England
roads were put on a 2-cent rate and
did not increase the traffic for some
years, it taking the people that long
to get used to a lower rate, and on
the other hand within six months the
New York & New Haven was paying
and had an increased traffic. For that
reason they argue that the short space
of three or six months is not always a
sure test in the matter Of whether or
not the rate Is confiscatory or not.
If the railroads refuse to put in the
rate later on and go to charging three
cents the state courts will begin to
grind. The case may go to the United
States supreme court but II 1t does
the Iowa officials will be prepared to
| make a good showing. Even if Judge
MACPHERSON does grant the injunction re-
straining the officials from obeying the
law the Iowa officials will prosecute
the roads the first time they attempt
to charge three cents. No court, state
or federal, can enjoin q state official
from enforcing the law. If any road
attempts to charge three cents they
will be indicted and prosecuted In rhe
state courts and 1t VIII then be UP to
them to prove that the law is uncon-
stitutional From the state courts the
case would go to the United States
supreme court