The sun., 1908-03-24
MINNESOTA RATE Law VOID
UpREUE COURT DECLARES 1T
10 BE UNCONSTITUTIONAL.


Hear the Claims Raised but Also 70
sta, the Execution Of such Laws.
WASHINGTON, March PA sweeping
decision affecting every State whicht has
,doptci drastic anti-railroad legislation
vas handed down by the United States
Supr,me Court to-day. The Minnesota
r,iIroad law was declared unconstitutional,
and in q shorter opinion the court made a
smlar declaration with reference to the
North Carolina railroad law. Eight Of the
n,.a Justices joined in these rulings Of the
court. The courts opinion is regarded in
soue quarters here as pointing directly 70
the unconstitutionaliIy Of the railroad
rate act
By a bench unanimous except for Justice
Harlan the court held that where such laws
affected the rights Of the railroads or their
gockholders guaranteed by the IConstitu-
non Of the United States the subordinate
Federal courts had authority not only to
hear the claims raised but also TO stay the
execution Of such laws, notwithstanding
the prohibition contained in the Eleventh
Amendment against the institution Of suits
against a State. In other words, the court
decided in unequivocal language that as
between the prohibition OF the Eleventh
Amendment, behind which the States had
taken refuge iD enacting such legislation,
and the property rights protected by the
Fourteenth Amendment, the latter was
paramount where such rights were invaded.
The decision will have the effect Of bring
me- 20 the courts for review any Of the 80
caued COniscatory railroad rate laws
enacted by the States despite the extraor-
dlnary penalties that in some cases have
been laid down to prevent such a review,
and further that the local Federal courts
win have the power to suspend the operation
of such state laws pending judicial inquiry
As 10 their legality. II is a pronounced
setback for the extreme advocates Of States
lights who have contended that the Federal
courts, in view Of the Eleventh Amendment,
yarc without jurisdiction to interfere with
toe execution Of State laws.
To-dsys decision, while primarily upon
the rates fixed by Minnesota for the trans
ror,ation of certain commodities within
that State, also carried with it a somewhat
similar case involving the rate law Of North
Carolina. where last summer the conflict
of authority between the State and Fed
oral courts was 80 acute that there were
threats by Gov. Glenn to call out the State
troops to enforce its law. In the Mime
s,ta case the controversy arose over the
Enactment first Of the two cent rate law
aud the excessive penalties that were pro-
,Ued against the railroads or their off,
cers who refused to comply with its terms
$500 fine and five years imprisonment
for each refusal to sell ticket at the rate
named
Then followed what were known as the
commodity rates, which we're to have gone
into effect June 1 last, reducing substan-
tally the rates on certain merchandise
and prescribing the minimum weights for
carloads. Before that date however GER
tain stock holders Of the Northern Pacific
road brought suit in the Federal court for
he District Of Minnesota TO enjoin the
Attorney General OF the State from putting
the rates into effect That Official appeared
for the special purpose Of objeotlng to the
Jurisdiction of the court, Contendng that
il was without authority because the suit
was in effect one against State, prohibited
rvthe Eleventh Amendment. This demurrer
vas oyerru led and an order was issued
enjoinng the enforcement Of the rates until
II could be determined iudicially whether
or not they we're confiscatory, as claimed by
the stockholders
Attorney General Young, however, paid
no attention to the injunction, but the next
dav instituted in the State courts pro-
ceedngs to compel the Northern Pacific
10 adopt the commodity rates prescribed
When this action was brought to the at
fentiOn OF the Federal court Young was
arrested and after hearing, in which he
again ret up his immunity under the
Eley enth Amendment, he was adiuged in
contempt uf the Federal court, fined slOO
end committed to the custody Of the United
states Marshal until paid and he should
purge himself 10y Withdrawing the suit
from the State court Instead he applied
IN the Supreme Court for writ Of habeas
,orpgs for his release.
The case Was argued in December and
attracted wide attention, as 1t vas the
hrst Of the cases involving the power Of
he Federal courts toA'uterfere with the
execution Of State lawn affecting railroad
rates. Attorney General Hadley Of Missouri
took part in the arguments and briefs were
filed in the case by the Southern Railway
recause Of the similar questions involved
IN its controversy with the State Of North
rarolina and by the Public Service Com
mission Of New York on account Of the
NJ cent gas law, which has been decided in
the interim.
Taking up the question Of jurisdiction
NJ the lower court, Justice PeCkham,
who delivered the opinion, said il was
gwen il in suits arising under the laws
and the Constitution Of the United States,
aud the question really TO be deter
mined was whether the acts Of the legisa-
ture II enforced, would take property with
ont due process Of law, and the question
ght incidentally involve a question of
Tact; it's solution, nevertheless, was one
hat raised Federal question, The suffi
cIeucy Of rates with reference TO the Federal
constitution, he said. was a judicial ques-
tlon and one over which the Federal courts
had jurisdiction. and had been settled by q
long line Of decisions,
Quoting from prior decisions that a law
was invalid where il imposed remedy so
dflicult 10 enforce as 20 be no remedy at
all and that a rate was unconsttutiona
"here the ueC'slOn Oh lne lFBlsldNuIo vi
~ commission was conclusive as to the
Miticiency Of the rates, Justice Peckhan
sad that law which indirectly accom-
Dlshed like result by imposing such con,
1lons upon the right TO appeal for Judicia
relief az worked an abandonment OF the
right rather than face the conditions upor
which It was offered or might be obtaineC
MS also unconstitutional. He continued
I may therefore be said that when tn,
r"nalucs for disobedience are by fines 81
'rormous and imprisonment so severe a
'n Wlimidate the company and its officer