Omaha daily bee., 1907-06-18
VICTORY FOR sTATB
New Act Will Become Effective
Wednesday for Three Months.
SUIT MAY BE RENEWED THEN
Railroads May Revive Case if Rate is
Unremunerative.
FREIGHT CASE IN FEDERAL COURT
Nearly All Testimony t. Already on
File and II WIZ ne AdJudicnted
There--McPherson sug-
Eested Compromise.

Eested COmprOmise.
KANSAS CITY, Mo- June 1.-THE Mis-
souri, 2-cent passenger fare act will go
into effect at a. m. on Wednesday next
and be given a three months trial II, at
the end Of that time. IL is found TO bo
unrenunerative its enforcement can then
be fought in the courts by the railroads.
! The state officials are temporarily en-
| Joined from enforcing the maximum
freight rate law and this case will be ar
gued later in the federal court.
Judge Smith Mcpherson IN the United
States district court here this afternoon,
after handing down an opinion maintain
ing the courts Jurisdiction In the premises.
ordered the promugation OF the above
above facts, which had been agreed to by
the attorneys for the state and the eight
cen Missouri railroads involved. Tho
court in its decision had suggested that
the 2-cent fare should be first given a
practical trial before injunction proceed
ings preventing it's enforcement be consid-
cred.
HndIey Discusses Case.
Norbert S. Hadley attorney general.
said this afternoon regarding the 2-cent
bill
IF at the end OF three months the rail-
roads want 10 litigate the ressonableness
Of these rates the question Of the jurisdic-
ton of the state and federal courts to
determine the question will be fought out
and the state has lost none of It's rights or
advantages.
1.-THE injunction suits wnich I have
brought against the companies on the pas
senger rates in the state court will stand
"As the reasonableness OF the freight
rate law can be more speedily heard and
determined by the federal court on account
of the fact that practically all the testl-
mony necessary to the determination has
been already taken there. 1t win be heard
and decided in that court The state Is
in the better position to win the case un-
der the act of 1907 than It was under the
the law of 1895. feel that the order
made is both a moral and a substantial
victory for the state
The Courts opinIOn.
Judge Mcpherson said in part;
That the fixing OF rates by the legislature
Is presumptlvely correct, all concede. That
II is a legislative act, all agree. But that
such rates must be reasonably remunera-
tive, cannot longer be discussed. The rail-
ways are entitled to cost and a reasonable
profit, and no fair-minded man disputes it.
How 70 arrive at the cost and reasonable
profit is a most difficult problem. But II
cen only be by judicial proceedings and
to be determined only by the courts and
ultimately by the supreme court Of the
United States. No skill Of the craftsman
by the use OF words or phrasing can take
that from the courts 10 the town meeting.
1t cannot be changed by defamation,
either sophomore or by invective. II
can never be settled In criminal case by
arresting ticket agents or conductors Tha
supreme court IN the enc must have the
I evidence with the right TO make the ulti-
mate findings Of fact, No local tribunal.
as would be done If the case goes to the
! supreme court on writ of error 70 the
I state courts, and from the state courts
/ there is no method OF review but by writ
! There is but one orderly and seemly way
and that is in equity, with the right OF ap-
! peal to the supreme court, as has been
! said by that court over and over again.
! The argument that the courts OF the state
! can decide TO the validity of the laws OF
! the state, as we'll can the United States
| courts, will not be argued by any federal
| judge, but will be conceded. Those courts
! are as high minded and as learned as are
( the federal courts, but that Is not the queB-
! tion. II is n question of Jurisdiction. And
! this court has Jurisdiction and will main
| tain its Jurisdiction,
Not Final Decision.
! II is urged with much pausbility that
because penalties are affixed 70 the statutes
J of 1907 that the criminal courts of the state
4 only take jurisdictions l do not stop Ia
review the various Missouri statutes upon
| the subject of both passengers and freight,
! ali of which must be construed as In pari
materia: But i is sufficient to show that
! some Of the infiicting penalties Is not the
! only remedy. Tho attorney general and
railroad commissioners have much to do
/ which the railways contend are void in
I part. In the original cases the question
was whether an inc earnings a IN the Sggre
/ stll present under the statutes OF 1907.
/ Whether these laws by raising the freight
: rates and lowering the passenger fares ara
/ remunerative in the aggregate must be
considered by the court. The state Is not in
effect a party, tecause the charge Is that
these officials are seeking to enforce VOtA
penalties.
until vacated or modified The cases will
! be sent down for hearing as TO whether a
sued what shall be the scope? Shall they
restrain the enforcement OF the recent
freight rate statutef Shall they restrain
senger rate rate statute? Tentatively sub
/ Ject TO argument, and subject to change OF
( opinion. II I should hear the cases my pres
ent view il that the 2-cent passenger rate
statute should be put In force and kept in
force for some months at least with the
tion TO enjoin the enforcement OF the
statute One class of people claim that
with 2-eent passenger fare travel win so
! increase as 70 make u remunerative. 9TH
Z ers deny this. The Wisconsin Commission
but lately declared after months OF investi-
would be conhscatory and Governor Hughes
by a recent veto message so declared In
the populous state OF New York How, h
this question 20 be determined? Is II not
all speculation and guess work. or what
value will be the testimony OF an ordinary
business man? And OF what value viii be
the testimony Of railway expertsf
After Judge Mcpherson had rendered his
decision this afternoon the railways and
the state agreed to statement OF facts
I as follows:
That the railways application for a tenn
porary injunction 70 the maximum
freight laws Of 1907 Is sustained and until
further order OF court herein the state
officials are entoned from attempting 10
I recover any penalty or seeking to enforce
that law.
As 10 the 2-cent rate act, the order here
/ tOfore entered by the court enjoinina the
/ railways from obey1ng that law shall re-
I main IN effect until June 70 next at a m
| al which time the rates fixed "by said act
shall be put and kept In force for three
months without prejudice 10 the righta Of