Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-16
MISSOURI RATE CASE
COURT TO DECIDE QUESTION OF
JURISDICTION MONDAY.

KANSAS CITY, June 15.-After four
hours argument today by counsel for the
state and for the eighteen principal Mis-
souri, railroads in the United States district
court over the actions now pending re-
latng to the enforcement Of the Missouri
maximum freight rate and the two-cent
passenger fare acts. Federal Judge Smith
Mcpherson continued the case until Mon
day. VIII n he will decide whether the Fed
eral or the state court has Jurisdiction.
In the interim the railways will continue
to operate under the old laws. ignoring the
state injunctions procured in the state
courts at ST. Louis and Kansas City and
obeying an order issued y Judge McPher-
son -vrbidding the railroads 20 comply
with the new rate laws.
Attorney Hadley's Statement.
Mr. Hadley, in opposing the application
OF the railroads for leave to file a supple
mental bill asking for temporary i..junc-
ton restraining the board of railroad COM
missoners and himself from enforcing the
maximum freight rate law and the two-cent
passenger law, enacted in 1907, said:
! ''Th. right of the compliments to file
supplemental bill in this case, goes di-
rectly to the question of the jurisdiction of
the state of federal courts. The jur;sdic-
lioH Tic Stdle COURT III tIIS HldtleT Is CO.
extensive with the Jurisdiction of the fed
eral courts, and in order to maintain with
out controversy and friction our dual sys-
TEN of state and federal sovereignty the
Jurisdiction of the state courts should be
recognized and respected.
If the compliments are to be granted
the order asked for, the legislature of a
sovereign state can be kept in constant
tutelage by the federal courts. Such a
condition would be destructive of our sys-
TEN and form of government, and over
throw that sovereignty which is reserved
by the states under the provisions of the
federal Constitution.
Spencer's Review of Case.
Judge o. NJ. Spencer, counsel of the Bur-
llngton railway, in a review of the case,
said:
1.-THE maximum rate litigation, which has
been pending for about two years, sought
to have the maximum rate law of 1905 de-
clared confiscatory and void.
'"The state admitted the unreasonableness
of the maximum rate law of 1905. and the
legislature passed a new maximum rate law
in 1907 The legislature also passed the
two-cent fare law, that while some of
the freight rates were made higher by the
act of 1907, yet on the whole the railroads
were worsted by the legislation of 1907.
Hence the supplemental bill was pre-
pared in the maximum rate suit pending,
and leave was asked to file the same
and passenger, the railroads were not get
ting a reasonable return in earnings on
their property. Just why the attorney gen
eral should object to this course is not
clear. That he does object is forcibly Illus
trated by his application to the state courts
for q mandatory injunction compelling the
railroads to put into effect the new laws of
1907 This course would seem to mean
that the railroads must operate under the
present rate laws, regardless of whether
such laws afford the railroads a reasonable
return on their property or not. The man
datory injunction from the state court is
certainly a novel way of enforcing 4 Grim
inal statute. But it VIII only hasten the
real iSsues-that is which jurisdiction shall
regulate these great corporations engaged
in commerce, the federal government or the
several state governments
During his argun ant Attorney General
Hadley said that he could If he chose.
bring quo warranto proceedings to take
away the franchise Of the railroads, and
intimated that the federal court would he
powerless to prevent him.
II began proceedings" Hadley added, Ito
enjoin these railro ads from violating the
contract they made with the state when
they we've allowed 30 come into Missouri.
that they would obey the laws of the state
and not burden the traffic on the public
highways of the state. The railroads, in
announcing that they were going to violate
the law of this state in violation of Their
obligations are usurping their franchises
and committing a public nuisance upon the
state