Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-07-04
TO TEST 2-cENT FARE LAW.

The decision on the Missouri two
cent fare law by Judge Mcpherson,
of the United States District Court,
sitting at Kansas City, Mo, handed
down last week, says the Railroad
Gazette, is somewhat novel and may
furnish precedent for similar cases
pending or contemplated in other
states. Bills prohibiting railroads
from charging more than two cents
q mile for transporting passengers
have been passed by legislatures and
signed by the governors of the states
OF Iowa, Ohio, Illinois, Indiana, Mis-
sissippi, North Carolina, Nebraska,
Pennsylvania, Minnesota, Oklahoma
Arkansas and Missouri. The attitude
OF the railroads generally toward
these bill is that they are confiscatory,
and that the rates fixed are lower than
the railroads can comply with without
loss. OF course, if this proposition
can be maintained, all such bills lack
constitutional warrant and must fail
Of their purpose. 1
The general principle involved is
now well settled. The doctrine laid
down by the Supreme court of the
United States controlling these cases
{ Is that no legislature, either directly
by statute or indirectly through rail
road commissions, can establish rates
OF fare which do not bring a reason
able profit to the carrier upon the
cost Of the road and expenses Of
maintenance and operation, -
& It will be seen, therefore, that the
question is now not so much one Of
IANras one of fact. A two-cent fare
might, SO fsr as the law is concerned,
be upheld None state and overruled
in another. Where the population is
dense and travel frequent two
Cent rate may show an excellent pro-
fit upon the carriers investment. In
such state bill fixing that rate
would be entirely constitutional and
enforceable. In a state where the
population is, sparse and passengers
relatively few, two-cent rate would
destroy all hope of profit. In such
case the law would be clearly uncon-
stitutional and void. r. ~
The simple question, then, in all of
these cases is one OF fact, whether
in any particular state the two-cent
rate gives a reasonable profit or not.
Such an investigation involves a
Dainstaking examination of all mate
rnal facts bearing upon the question
or profit and requires on the part Of
the court a patient and calm judy
ment W..
The decision of Judge Mcpherson
In the Missouri rate case is an I'M
usual and interesting exception to the
general rule. Starting with the pro-
position that the rates fixed by the
legislature are presumptively reason
able and remuneratiVe, the judge finds
himself confronted with claim to
the contrary, and the old-time prac-
tice Of the court in equity to stop
threatened proceedings till their effect
is ascertained. He realizes that a
smart bookkeeper can make any show
ing that may be required of him and
prophecies of what may happen IN
der new and untried conditions are
/ too speculative basis for judgment.
Perhaps, suggests the Judge, when
the law is put into effect, it may SO
stimulate travel as to make the new
rate profitable, even though 1T be I'M
profitable under the old conditions.
LII the legislature is presumed to
have acted Justly towards the rail-
r0ads-and coordinate department
OF the government cannot proceed,
IN the absence Of evidence, upon any
other ositfon why not act upon
the presumption and, in fairness to
the laW-making power, allow it's stat
ute to operate until that operation de.
mOnstrafes the confiseatory result
The courts are ever slow to declare
{ statute void, and never do SO I'M
less it be clearly unconstitutional.
Applying the test OF actual experience
is much more apt to lead to sound
conclusion than INDUCING in specu1a-
ton as to results OF experiments I'M
tried except IN imagination. BY put
ting the law in elect and watching
ITS operation for q reasonable period,
presumption Of validity is harmon
lied with that anxiety Of court Of
equity % Investigate thoroughly 8
threatened wrong and to tIfwart fl,