Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-07-16
JUDGE koHLsAAT OF CHICAGO
HANDS DOWN DECISION
AGAINST MuNsEY PEOPLE IN
TRANSPORTATION TEST SUIT.
COULD EXCHANGE
LABOR AS WELL
COURT SAYS 1T is THE INTENT
OF HEPBURN ACT TO CLOSE
EVERY AVENUE TO POSSIBLE
DISCRIMINATION.

Chicago, July 15.-"If 1t be lawful
to make exchange of railroad trans.
portation for advertising, then 1t
would be as lawful to do the same In
every transaction and the railroad
business might lawfully become one
of barter and sale, limited only by the
demand" In decision handed down
today by Judge Kohlsaat, of the
United States circuit court. from which
the above is quoted, the jurist enjoin-
ed the issuance of transportation by
the Chicago, Indianapolis & Louisville
railway company to the publishers oi
Munsey's magazine in exchange for
advertising.
is Test Case.
The decision was rendered In
test case in which the federal authori
ties brought suit to prevent the carry.
ing out of the contract entered into
between the railroad and Munsey &
Co., providing for the issuance Of trip
tickets or mileage to the value of $500,
in consideration of certain advertising
space In the publication Of the maga-
zine company. The contract was al
lleged to be a violation of the Hepburn
law. The petition charges that the
action of the railroad in Issuing such
transportation constitutes a violation
of the prohibition against the accept
ance Of any compensation for trans.
portation greater or less or different"
from that named in the published
rates. The railroad insisted that 1t
received full money value, based on
| the schedule of rates for mileage OF
| tickets issued, and denied 1t was com
| mitting violation of the law in pass
ing upon the question of compensa.
| ton.
| No Fixed Price.
The decision says: "The question
as to the value of advertising Is a
contested one Manifestly there can
be no fixed price placed upon 1t. The
number of copies issued, the charac.
ter of It's subscribers and very many
other questions enter into the esti.
mate of its worth.
1t is therefore impossible to say
what it's cash market is, except by a
comparison with other advertising
rates. 1t cannot be said that the evi-
dence is conclusive or even convinc-
ing on this point. If it is taken at its
cash value, why should transportation
be limited as specified N the contract?
If the magazine is paying $500 to the
defendant why does it accept the
transportation, both of less and differ
ent value than it would accept II 1t
bought its tickets with the money It
seems fair to conclude that either ad-
vertising is of less than cash value or
advertisers are grossly imposed upon
by the railroads.
Cites Decisions.
after citing several decisions rem
dered in a somewhat similar cases,
the Judge says: ut will be noted the
tising must be furnished before the
transportation is given. There is no
] restriction upon the advertiser to call
for his railroad tickets only 30 far ss
earned. In a mere matter Of interest
the rate would be less and different
from that which is published. There
is no mistaking the tendency of the
law making and constituting powers
Every new step is tending toward 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
the words greater or less 1t is not
Iunfafr to assume that congress intend.
/ ed to make the law more explicit and
more difficult to eyade.
Close Every avenue.
1 The plain intention is to close ev-
cry avenue against discrimination. It
is essential to the spirit of the statute
that the value of transportation be
fixed and certain. II one person may
purchase it with advertising, another
with labor, another with produce, the
value of which is matter of agree
ment between the parties, how can 1t
be said the schedule of rates is al
ways maintained? Would not the rate
rest In the whim of the carrier? Such
is not the intent of the law. The ac.
tion of the defendant is in dissonance
with the letter and spirit of the inter.
state commerce act"
Notice of appeal to the United
States supreme court was at once Civ.
en- by the attorneys for the railroad.
4 Air Trip Postponed.