Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-07-15
Judge kohlsaat, OF United States
Circuit Court Upholds the
Hepburn Law
MuNsEYs LOSES TEST CASE.
Court Holds That Advertising Is of
no Fixed Value and Varies Under
Certain conditions-Transportation
Must Be Of Fixed va'ue-The
Courts Decision.

Chicago, July 15-.Tf 1t be lawful to
make exchange of railroad transporta-
ton for advertising, then it would be
lawful to do the same in every trans
action, and the railroad business might
lawfully become one of barter and sale
limited only by demand"
In a decision handed down today by
Judge Kohlsaat. of the United States
quoted. the jurist enjoined the issu-
ance of transportation by the Chicago,
Indianapolis & Louisville Railway
Company to the publishers of Munsey's
Magazine in exchange for advertising.
The decision was rendered in test
case in which the federal authorities
brought suit to prevent the carrying
out of contract entered into between
the railroad and Munsey & Company,
providing for the issuance Of trip tick
cts or mileage to the value Of $500. in
consideration Of certain advertising
space in the publication Of the maga-
zine company.
Violation Of Hepburn Law.
The contract was alleged to be
violation of the Hepburn law. The
petition charges that the action of the
railroad in issuing such transportation
yio OF 0f tho nrnhihi.
tion against the acceptance of any
greater or less or different from
that named in the published rates. The
railroad insisted it received full money
value, based on the scheduled rates for
mileage or tickets issued, and denied
1T was committing a violation OF the
law.
Advertising Of No Fixed Value.
In passing upon the question of
compensation the decision says:
"The question as to the value Of adj
vertising is contested one. Manifest
ly there can be no fixed price placed
upon it. The number of copies issued,
the character of its subscribers. and
very many other questions enter into
an estimate Of its worth 1t is there-
fore impossible to say what its cash
market value is except by comparison
with other advertising rates. 1t can
not be said that evidence is conclu-
sive or even convincing on this point.
If it is taken at its cash value why
should the transportation be limited as
specified in the contract? If the mag
azine is paying $500 to defendant, why
does it accept transportation both OF
less and different value than 1t would
accept If it bought its tickets with
money? 1t seems fair to conclude that
either advertising is Of less, than cash
value or advertisers are grossly i'm
posed upon by the railroads"
After citing several decisions rem
dered in somewhat similar cases, the
Judge says:
TRANSPORTATION Must Be Of Fixed Value.
'Tt will be noted the contract does not
require that advertising must have been
furnished before the transportation is
given. There is no restriction upon the
advertiser to call for his railroad tick
cts only so far as earned. In the mere
matter Of interest the rate would be
less and different from that which is
published. There Is no mistaking the
trend Of the law making and constituting
powers. Every new step is tending to-
ward a most rigid enforcement Of the
rule that requires exact equality in
the matter of rates. When by the
Hepburn act the word different was
added to words greater or less,' 1t is not
unfair to assume that congress intend
ed to make the law more explicit and
more difficult to evade. The plain In
tention is to close every avenue against
It is essential to the
spirit Of the statute that the value Of
be fixed and certain. If
one person may purchase 1t with adj
vertising, another with labor, another
with produce, the value Of which is a
matter Of agreement between parties,
how can it be said the schedule of
rate is always maintained? Would not
the rate rest in the whim Of the car
rier? Such is not the intent of the
law. The action of defendant is in dis
sonance with the letter and spirit of the
interstate commerce act"
Will Be Appealed.
Notice of appeal to the United States
supreme court at once was given by
attorneys for the railroad.