New-York tribune., 1908-01-21
TWO-CENT FARE KILLED
VTCTORT FOR RAILROADS
Pennsylvania Supreme Court De-
cIares State Lac Void.
TDy Telegraph to The Tribune. !

Philadelphia, Jan 2o-The Supreme Court of
Pennsylvania to-day nullifed the 2-cent pas
senger rate law passed by the Legislature last
year. The court divided, to B. There is no
appeal from the decision, and il is expected that
the railroads in this state which have accepted
the law since October /, viii now make a gem
eral increase in their passenger fares, though it
is LOT believed that the rates Will be in all cases
restored 10 what they were before the law was
put into effect.
The decision announced to-day was an af-
frlnation of a decision made by the Common
Pleas Court Of this county some months ago.
The prevailing opinion was by Chief Justice
Mitchell. 1t was concurred in by Justices Brown.
Fell and Elkin. and dissenting opinions were
fled by Justices Stewart Potter and Mestrezat.
eThe majority opinion contains these sentences:
The exact question is not the general consti-
tutionality of the act OF 1907. but the right TO
enforce il against the railroads The real ques-
constitutional provisions that the legislative
power 10 alter or annul shall be exercised only
in such manner that no injustice shall be done
20 the railroad.
The court below found that the act does in
justice TO the corporators in that it reduces the
returns from their property 10 such an extent as
10 render il unremunerative- AS this is queS-
tion of fact, the findings of the court cannot be
disturbed unless shown to be clearly erroneous
Justice Mestrezat in his dissenting opinion
charges the lower court with neglect in falling
10 pass on the question of immunity of the rail-
road from legislative supervision even while ad-
mitting the right of such supervision. He declares
that the rate Of two cents mile is not unrea-
sonable
Justice Stewart in his dissenting opinion takes
exception TO the contentious of the railroad that
the state has right 10 regulate the company's
business and that the company could NOT con-
tinue TO do business undo: the 2-cent law.
He declares that the exact effect Of the law
cannot be determined account of the COM
pick nature OF the railroads business Justice
Potter does not agree with the lower court that
The act would prevent the railroad company
rom earning 2 fair return the capital in
vested. He holds that the effect of the act on
ne earnings Of the whole system within the
state. and not alone the earnings on passenger
traffic, should have been considered
The 2-cent fare law was enacted by the last
Legislature, the bill passing both houses by
practically unanimous vote The railroads
fought the bill vigorously and after ii became
Law the Pennsylvania Railroad Instituted suit in
the Common Pleas Court Of Philadelphia
straining the County Of Philadelphia from
forcing the law. The railroad contended that
the law was unconstitutional in that il was un-
reasonable and conhscetory. and the court
1sined the cor1pany's contention. The County
Of Philadelphia then took the case to the State
Supreme Court Attorney General Todd repre-
senting the State of Pennsylvania took part in
1he proceedings and made the principal argu-
rllent before the lower and higher courts against
iae railroads contention Other railroads
brought similar actions in several counties Of
the state. but the Pennsylvania suit was the
only one TO reach the Supreme Court
Attorney General Todd declared this after
noon that the matter was ended
7 wish" he said, there was something we
CoulS cc h-T free q that know of
grounds upon which can appeal No ap-
peal can be taken by us 10 the United States
Supreme Court Had the decision been adverse
70 the railroad company il could have been ap-
pealed 70 the federal courts. The case is closed
far as am concerned
Pittsburg Jan 2o-According 70 information OBJ
: tsf-sbie here to-day there will be no immediate
Change the fares OF local railroads because Of
TIE Supreme Courts decision. Colonel Samuel
Moody. general passenger agent Of the Pennsyl-
van1s lines west said: II hardly believe that there
will be any change in the rates until February
i required long time 10 prepare rate sheets De
fore the 2-oent law went into effect The
Pennsylvania Will obey the law. we have been
doing al through this controversy.
L a Robson, general passenger agent Of the
Pittsburg & Lake Erie Railroad. said: we have
made careful examination the effect Of the 2
cent lines, and on the whole we nave
lost considerable money In some divisions on the
line notably the Youghiogheny, we found that the
low rate stimulated business. We will adjust the
rate on z fair basis, and, course will increase
The rates where We have heavily just as soon
as We can"
Harrisburg. Penn Jan. 2O-The action of the
State Supreme Court in affirming the decision or
he lover court Of Philadelphia against the consti-
Iurionaity Of the 2cent fare law caused little sur
Prise here II is believed that the new State Rail
road Commission Will take up the matter. Win a
fCiGH "a