The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1908-12-01
COMMISSION
GAN FIX TAX
FOR PASSENGER
The United States Supreme
Court Decides the Famous
Virginia Case
COMMISSION CLAIMED FEDERAL
COURT HAD NO JURISDICTION
Act Of Commission Was Legislative IN
Character and Was Subject to Re.
view by the Federal C0urt-Decision
Is Technical

Washington, Dec. 1-Justice Holmes
today announced the decision Of tho
supreme court Of the United States in
The case of the Virginia railroad vs.
The state corporation commission Of
Virginia calling into question the or
der Of the commission fixing a uni.
form rate of two cents a mile. for
passengers in the state.
The decision reversed the judgment
Of the United States circuit court for
the eastern district of Virginia, but
only on the narrow ground that the
railroads should have appealed from
the commissions order to the supreme
court Of Virginia before seeking the
of the federal courts.
In effect the court directs that tho
railroad companies take their case to
the state court of last resort and that
In order to prevent inJustices through
the application of the statute Of limi-
tations, the case be retained on the
docket Of the Unised States circuit
court by which it was originally de-
cided savorably to the roads.
In this case the Virginia commits
sion has fixed rate Of two cents per
mile and was proceeding to publish
the rate and was taking the initial
steps to enforce it. Thereupon the
railroads went into the circuit court of
the United States and obtained an in
JUNCTION against the commission en-
forcing the rate on the ground that It
was confiscatory. To the bill in this
case the members of the Virginia COM
mission demurred, not raising the
question of the merits of the two
cent rate, but claiming that the COM
mission in fixing the rate had exer-
cised the authority and jurisdiction Of
a court, and that it's order was, there
fore, readjudicated and could not be
inquired into or interfered with by
the circuit court of the United States.
1t, therefore, denied the jurisdiction
Of the circuit cour. OF the United
States 10 inquire into and enjoin the
rate, even though it might be con-
fiscatory.
The supreme court, Justice Holmes
delivering the opinion; overruled this
contention. holding that the commits
sion is not a court when making
rate, but is acting legislatively, and
that it's action is not res adjudicata
and is not beyond the reach of the
federal courts if it violates any pro-
vision of the constitution Of the Unit
ed States. Under the Virginia sys-
tenn, however, an appeal is given as
of right from the action of the COM
making the rate to the su-
preme court of appeals of that state.
The supreme court of the United
States further held that the action
Of the court of appeals of Virginia on
such an appeal from the commission in
making the rate, is itself legislative,
and not judicial, and that it likewise is
subject to be inquired into, and, IL
it violates any constitutional right Of
the carrier, is subject to be enjoined
in the circuit court Of the United
States. The supreme court further
held, however, that as the state OF
Virginia had given this right of ap-
peal from the commission, the final
legislative word of the state in re.
spect to the rate is not said until the
u< q "a oo.,rf ~ opnaoIo oovu ~ ond <hoA
under these circumstances 1t is pro-
per for the carrier, before going into
the federal court t. see IL the state
court Of appeals will not correct the
wrong OF the commission which is
of, and If it refuses to
correct tho rate it would be time
for the carrier to come into
the circuit court of the United States
of as confiscatory.
that the action of the state court Of
appeals. being legislative. and not
judicial, the remedy need not be pur-
preme court of the United States for
the highest court Of the state by writ
Of error. because, the action Of the
judicial action, but is legislative, and
may be enjoined in the circuit cour1
Of the United States In a proper case.
The United States supreme court
therefore, while reversing the decis.
ion of the court below, ordered that
the bill be retained In the circuit
court 10 see what the court OF ap.
peals of Virginia will do when an ap-
peal Is taken to 1t, and IL 1t Is now too
late to take an appeal, the order of
the United StataS circuit cnnrf An.