Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-12-01
VIRGINIA RATE
CASE GOES To
STATE COURT
SUPREME COURT RULES
ON NOTED CONTROVERSY
Complaining Roads Must Go
Through Procedure Provided
by Virginia Law for Adjuca-
ton of Dispute,
[By Morning journal Special Leased wirel

IRy Morning journal Special Leased Wirel
Washington, ID. c., Nov. 3o.-Jus-
tico Holmes today announced the de-
cision of the United states supreme
court in the case of the Virginia rail-
roads versus the state corporation
commission Of Virginia calling in the
question of the order of the commits
sion fixing uniform rate of two
cents mile for carrying passengers
in the state The decision reverses
the Judgment of the eastern circuit
court for the eastern division of Viz
ginia but only on the narrow ground
that the railroads should have APP
peaIed from the commissions order
to the supreme court OF Virginia by
seeking the Intervention of the fed-
eral courts
In effect the court directs that the
railroad companies take their case 10
the state court Of last resort and that
in order to prevent injustices through
the application of the statute of linn
itations, the case be retained on the
docket of the United states circuit
court by which ii was originally de-
cided faVorablY to the roads
II is not the intention of the deeis-
ion that the railroads should resort
to the Virginia supreme court OF APP
meals and after its decision is render
ed. appeal to the federal supreme
court hut that if the verdict of the
Virginia court is not satisfactory the
roads may resume the proceedings IN
the United States circuit court On
This point the court said;
"Tf the rate should be affirmed by
the supreme court of appeals and the
railroads still regard ii as contiscatorN
they will be at liberty to renew tnelr
application to the circuit court with
out fear of being met by 0 piea o.
res adiudicata 1t viii not be neees-
sary TO wait for a prosecution by the
commission
In this case the Virginia commits
sion had fixed q rate of two cents pP'
milo and was proceeding to publish
il and take the initial steps to enforce
it. Thereupon the railroads went INTO
the circuit court of the United states
and obtained an injunction against
the commission enforcing the rate on
the ground that it was confiscatory
TO the bill in this case the members
Of the Virginia commission demurred
not raising the question Of the merits
of the two cent rate but claiming tha'
the commission had exercised the au-
thority and jurisdiction OF a court ana
its authority was therefore res ad-
tudicata and could not be inquired
into or interfered by the circuit cour'
of the United States.
The supreme court, justice Homes
delivering the opinion, oVerruled TIM
contention holding that the commls'
sion Is not a court when making .
rate but is acting legislativelY ana
that its action Is not res adludlcaia
and is not beyond the reach OF inc
federal courts. if it violates any pro
vision of the constitution OF the unl'
ted states Under the Virginia sYs-
tenn. however, an appeal is given. a
of right. from the action Of the com
mission making the rate to the su-
preme court Of appeals or that stale
The supreme court of the United
states further held that" the action O.
the court of appeals of virginia or
such appeal from the commission. ~
making the rate, is itself legislative
and not judicial and that it likewisf
is subject to he inquired into, ana u
it violates any constitutional right %.
the carrier. is subject 10 be enioineo
i'm the circuit court of the Unlte'
states The supreme court turth'I
| held, however, that as the state o.
| Virginia had given this right OF ap.
| peal from the commission. the ma
| legislative WORD or the Sldi' III i'NH' 70
| to the rate is not said until the state
court Of appeals says it, and that un-
der these circumstances, it Is proper
| for the carrier. before going into TN
| federal court to see if the state court
| Of appeals will not correct the Wron"
Of the commission which is complain
ed Of and II il refuses it viii ther
be time for the carrier to come int"
| the circuit court Of the United states
| The supreme court Of the United
| states therefore. while reversing the
decision Of the court below, orderec
/ that the bill win be retained in thf
circuit court to see what the court
of appeals of Virginia viii DO Whef
an appeal is taken tc it and If IT Is
not too late to take an appeal th'
order Of the United Statcs circuit
court enjoining the Virginia commis-
/ sion must be affirmed.
If the court of appeals OF virginia
however. entertains the appeal. then
/ the railroads would have the right tc
nroceed in the circuit court Of the
/ United States to question the validit,
of any order Of the Virginia court OF
appeals. as contrary Ia the United
I states constitution The raiiroad'
/ claim that they are practically given
every substantial right which they
! contend for.
The courts action in reversing tht
circuit court decision was based or
the fact that the roads had failed tc
iappeal to the United States supreme
court before invoking the interven'
tf.-. q tho TTrffaF states circuit court