Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-06-06
Union Pacific and Rock Island Fills
Written Statements.
HOLD RATE NOT COMPENSATORY
Commodity Rate Law Also Held Up al
Unjust to Roads.
ACTION ON BOTH IS DEFERRED
Belief I'm Some Quarters the Protest
on the Two-Cent Passenger Rate
Law IL Intended to stop
Lowering Freight Rates.
fFrom a stan Corresnondent.

| LINCOLN June b,--(Special. .l-RailrOad
attorneys appeared before the State Rail-
way commission this forenoon, not to fur
nish Information that had been asked for
by the commission, but to indicate that
they would contest the constitutionallty OF
the 2-cent passenger fare law and the
commodity freight rate law passed by the
last legislature. The action of the attor-
nSys is construed as meaning that IL the
railway commission attempts to lower
freight rates the railways will contest the
2 cent fare bill and the commodity maxi
mum freight rate law, otherwise little
may be dore. The railroad attorneys have
not yet threatened to contest the consttu-
tionality of the law creating the commis-
sion, but County Attorney IL. ID. Browne
of Saline county, who Is on the Burlington
pass list has spent two weeks in the
office of the secretary OF state investigating
the house and senate records, supposedly
for the purpose OF gathering Information
on which the railroads can base a suit to
test any or ali Of the laws relating to
railroad business.
John N Baldwin appeared for the Union
Pacific and threatened to test the 2-cent
fare law and said plainly that he would
contest the maximum freight rate law be-
fore 1t goes into effect July S. The Rock
Island company, by its attorney, Erasmus
c. Lindley, filed a statement indicating that
his company might some time test the VAL
idlty of the two laws. He contended that
both are unconstitutional. Attorney q ].
Kelby for the Burlington coincided with
what Mr. Baldwin said
Union Pacific Notice.
The notice from the Union Pacific set
ting forth its stand on the 2-cent fare
and commodity rate laws was filed in
writing by Attorney Baldwin, as follows:
To the Nebraska Railway Commission.
Gentlemen: The legislature OF the state
passenger rates in the state of Nebraska.
This act relating TO passenger charges
cents per mile and the act pertaining TO
freight rates provides for reduction of
live stock, potatoes, grain and grain
products, fruit, coal, lumber and building
| material, in carload lots.
! The act pertaining To passenger rates by
! virtue of its provision became effective on
approval OF the governor, and the act
relating to freight rates will become eff
fective under constitutional provision about
You are hereby respectfully advised that
the Union Pacific Railroad company tenn
porarily put the 2-cent passenger rate into
effect Immediately after the law became
! operative The institution Of the 2-cent
! rate in obedience to the law, with no
] waiver intention to waive the rights
pany as a common carrier to reasons
able return for the service rendered predi-
Gated on the cost thereof
/ The Union Pacific Railroad company be-
! leves that the 2-cent passenger rate is not
! compensatory, and that It will not yield
Of service but il has Constrained immeS
I diate procedure for relief in order that
a thorough test for trial might be had
/ and the consequences of the law fairly,
fully and practically determined
The law reduces the rate SSb per cent.
a reduction unendurable, unless by reason
thereof there shall result such a stimulus
of traffic as TO compensate for diminution
of revenue thus entailed.
! While deferring definite conclusion to
the results obtained by and from fair
test OF the law. the Union Pacific railroad
+! is of the opinion that the 2-cent rate Is
not compensatory, and that whatever
| reciprocal benefits may flow In the form
OF increased traftic Will be inconsiderable
compared with the depletion in revenue +,
thus sustained
Therefore, so far as the Union Pacific
with respect to acquiescence in the law
is contingent on the Judgment or test
Of Of the law and II u shall , be found that
lief will be sought in the proper legal form
and forum.
/ In respect TO the law providing for a
reduction in freight rates on certain conn
modltes, II is provided in said act that
your honorable body may, on complaint
OF the carrier, interpose full restraint In
regard to its operations. We believe that
this act was passed without knowledge
! OF common carriers in Nebraska, without
regard to the existing ratio OF charge to
DENSITY Se Of tTatfc and "Ig length of haul and
without due consideration for the many
elements entering into the formation OF
railroad believes that said act is confis-
we therefore, respectfully advise YOU
that the Union Pacihc Railroad company
I is reserving definite action with reference
/ to the accent passenger rate pending an
! ther respectfully advised with regard to
the act relating to freight rates: that re-
LIEF thsrefrom Will Will 9e asked from TOM this ms
] taking effect OF the same.
Statement of Rock Island.
The statement Of the Rock island al
/ leges that the two laws are unconstitu-
! tional for the following reasons:
| l. Said acts Of the Legislature, and each
of them deny said railway company tile
equal protection of the laws.
! 2. Said acts of the legislature, and each
Of them, deprive said railroad company OF
\ It's property without due process Of law.
3. The maximum rates prescribed for
the transportation of passengers upon
railroads within the state OF Nebraska are
unreasonable and conhscatory.
/ 4. Maximum rates prescribed for the
( transportation or commodities between
! stations in Nebraska are unreasonable and
confiscatory.
I OF them, are an interference with inter-
state commerce and a regulation thereof.
You are further hereby respectfully ad-
& Pacific Railway company has tempo
rarily put the 2-Nent passenger rate into
eneet y. dong-S has not waived, nor
d. q intend thereby TO waive it's inher-
ent right as common carrier 70 rea-
sonable return for services rendered. and
it's right to challenge the validity and con
stitutionality OF the act aforesaid; that
for the time being. and until the validity
OF said act can be passed upon, Il has felt
constrained TO comply Herewith by rea-
son Of the unreasonable penalties attached
for violation thereof
You are further respectfully advised
( that the undersigned VIII. Notwithstanding
the initiation OF the 2-cent rate, in the
future govern and conduct itself Ia the
manner and as II may be advised TO pro-
cure for itself In the proper forums just
and reasonable compensation for its serV-
/ ices as a common carrier.
SAYS States Have Ioat povxew