The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-09-27
minnesota R. R.
Case Decided
TWO GENT PASSENGER RATE is
UPHELD BUT THE CON-
modify RATE BEATEN.
Stops Commodity Rate. Effect Of the
Order is to Continue until Final
Hearing the Rates that are now
in Force.

st. Paul, Sept. 21.-Judge Lochren
in the United States circuit court is
sued preliminary order continuing
the order made at the previous hear
ing restraining the enforcing of the
commodity freight rates prescribed
in chapter 232 of the Laws of 1907,
but refused to issue mandatory in.
junction taking out the 2-cent pas
senger rate prescribed by the legis-
lature and the merchandise rates or
'dered by the railroad and warehouse
commission on Sept. 6. The effect
of the order as whole Is to leave
matters in statu quo pending de-
cision on its merits.
In delivering his opinion Judge
Lochren severely denounced the PEN
alties prescribed by rate laws. They
are as severe, he said, as the penal
ties provided for the worst crimes
and are vicious in principle and a
disgrace to the state.
In view Of these penalties which
virtually shut the door of state
courts in the face of the rail-
road officials, Judge Lochren held
that the directors were justified in
not bringing proceedings in the state
courts. Such action would have
made them and their subordinates
liable to imprisonment. There can
be no question, said Judge Lochren,
that such legislation is vicious and
reproach upon the intelligence and
sense of justice of the legislators.
The decision also overrules the de-
murrers interposed by the state on
the grounds that the rate suits are
against the state preventing it from
carrying on its governmental func-
lions, and as such are prohibited by
the eleventh amendment to the Fed
eral constitution.
The other objection taken by de-
murrer is that the suits are multifa-
rious, parties and causes of action
being improperly united. Judge
Lochren disposed of these objections
in favor of the complainants.
The decision, therefore, preserves
the rates now in force until the ques-
tions raised can be determined on the
merits. This is in accordance with
the request which Judge Thomas
Wilson, general counsel for the
Omaha road, made in court Wednes-
day, speaking for the Omaha and the
Chicago & Northwestern roads.
The principal grounds on which
these suits were brought were that
the effect of the prescribed rates was
to confscate property without due
process of law in violation of the
fourteenth amendment of the United
States Constitution and that in prac-
tice they necessarily and directly
interfere with the exclusive power of
congress to regulate interstate COM
merce.
While Judge Lochren did not deem
it proper in preliminary order to
go so far as hold that the prescribed
rates in practice necessarily interfere
with the regulation Of interstate COM
merce, his language on this point is
nevertheless interesting because of
the far-reaching Importance of this
question which will eventually have
to be decided and which it it is be-
believed is here squarely presented
for the first time.
Judge Lochren said he had no
doubt of the power of congress to
assume control of all avenues of in
terstate commerce as it had already
assumed control of navigable rivers
whether local or interstate, but he
would hesitate to hold on prelimi-
nary hearing that until congress had
assumed such control the states may
not regulate charges on such inter-
state lines for traffic which are wholly
local to the state.
In respect to the question of con-
fiscation of property, Judge Lochren
held that inasmuch as it had been
shown that traffic wholly local
to the state was noncompensatory
before any of the prescribed rates
went into effect and in view of the
reduced rates on merchandise and
passenger traffic already adopted, the
order restraining the enforcement of
the commodity rates which was
granted at previous hearing should
be continued.
There are two courses left open to
the state. One is to appeal to the
United States circuit court of appeals
from Judge Lochren's order and the
other is to go ahead under the order
and push the cases to trial on then
merits.
Attorney General E. T. Young sale
yesterday that, although he had not
decided as to future action, he viii
do all in his power to defeat the at
tack on the rate laws and on the or
der of the state railroad and ware
house commission.
Grapes.