Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1907-07-23
Must Observe 2.cent Fare Law

AeS MOlneS.-ftOld1ng that the
proper way to secure a settlement
OF the question arising from the new
2-cent fare law is through action
brought by the railroad companies
against the state officers entrusted
with the enforcement of the statute,
judge Smith MCPHERSON denied the
application of stockholders for an in
junction restraining the Iowa Central
and the Minneapolis & st. Louis rail-
roads from putting into effect the pro-
visions Of the act.
His opinion sustains the contention
OF Attorney General Byers that under
q rule laid down by the supreme court
OF the United States the stockholders
have no right to maintain such an
action against the companies. The
court himself expressed this view at
the hearing.
Judge Mcpherson holds, however,
that the observation-disclosures
that the board of railroad commission
ers and the executive council, which
have much to do with the classical
ton and valuation of the railroads of
the state on which the rates OF freight
and passengers are fixed, should be
made parties to suit brought by the
railroad companies themselves in or
der to properly test the new law.
The court differs with Attorney Cen
eral Byers In holding that by making
the state officials parties to the suit
the state would not become a party.
The state Of Iowa has no pecuniary
inerest as state in such litigation,
and that is the test. he declares
After Judge Mcpherson had finished
reading his opinion, Judge George H.
Carr, representing the eastern stock
holders, asked permission to amend
his petition, and the court granted
the request. Later Judge Carr stated
that his clients had not yet decided
on what course they would pursue. 1t
Is assumed. however, from the fact
that they asked for leave to amend
the petition that another attempt will
be made to knock out the law Hen
~ w. Poor of Henry W. Poor & Co.,
OF New York, who filed the bill
against the Iowa Central
against the Iowa Central, has returned
to New York.
Means Attack On Rate Laws.
The declaration of F. O. Melcher,
general manager of the Rock Island
railroad system, in his address at the
Iowa Grain Dealers association ban
Quet that tho power to regulate rail
ways should be vested solely in the
federal governments and not divided
with the state government as at pre-
sent caused much comment in Des
Moines. 1t was generally taken as
forecast of the future policy of the
railroads and would mean much litiga-
ton by the corporations to wrest the
power from the states and have pre-
sent state railroad laws declared I'M
constitutional
1t is not believed that the railroads
will attack any Iowa legislation of
this score at present, but will concen-
trate their efforts in Missouri, where
they now have case pending to de-
termine whether the state or federal
courts have jurisdiction over the q
cent passenger rate law.
The railroads brought the action in
the federal courts instead of the state
courts because they claimed that the
2-cent rate in Missouri would affect
the interstate rate.
souri, commended otherwise, but Judge
Mcpherson ruled against him and Mr..
Hadley has appealed to the United
States supreme court. If Mr.. Hadley
should lose, it will be one of the first
steps in likely programme to have
all state laws contested in the federal
courts.
Agar Case To Lower Court.
!. The suit for $4sO,Ooo damages start
cd by the Agar Packing company
against the Rock Island will be tried
in the district court. Judge McPher-
son handed down an opinion to the
effect that the suit is not properly a
federal court case and ordered it re-
manded. In all probability the suit
will be one of the first started at the
September term of court.
The Agars allege that the Rock
Island has Disseminated against them
In the matter of freight rates and in
favor Of Valley Junction shippers. 1t
Is expected that some interesting in
sights into the Iowa freight rate situa-
tion will be developed at the hearing.
NORTHWESTERN NOW IN Line.
The Northwestern railway has fol.
lowed the Rock Islands lead in ar
ranging affairs SO that Chicago pas
sengers can get the benefit of the O.
cent rate from Des Moines and have
| only to buy two tickets. The local of.
| fee now sells tickets to Clinton at 3
cents per mile and through tickets
from Clinton are sold at cents per
! mile. AS Clinton is division point
and stop of ten or fifteen minutes
Is necessary to change engines and
crews, patrons have ample time to
secure the second ticket and recheck
their baggag The Northwestern is
working the same scheme on Mime.
sofa business.
Many Errors Alleged.
Fifty errors in the ruling Of Judge
Smith Mcpherson in the case of the
Des Moines City Railway company VS..
the city Of Des Aoines are alleged In
an assignment of errors which. to.
esther with petition TO hape the
case carried to the supreme court Of
the United States, was filed in the
United States circuit court. The pa
pers were prepared by w H. Brem-
| ner, Howard j. Clark and w. H.
Baily, solicitors for the city. They
assert that the DEGREES entered on
March % and March 80, 1907, were
erroneous and unjust to the city.
Railroad Tax Hearing.
| On the suggestion of Governor