Omaha daily bee., 1909-03-09
Extended Opinion Says They Are Toe
Low To Be Compensatory.
NAY BE FAR REACHING
Attorney Says Decision VIII 1nvah-
date Laws In Other States.
MISSOURI WILL CONTINUE FIGHT
Attorney Genera1 VIII TAX an Ap-
peal - Supreme C@u-s sRd LeEts-
lsturr VIII Pass Law TSrt
WIN stand Test.

KsNsAs CITE March G-MiEseurif
s-usn1 passenger and maximum TsssfillEe1
and freight laws were nulltfieo by oei'-
Eior hsy5ed 6upn hs-e uodHy IN the United
states district court by Judge Smith Nc
FS1srsun q BED Oak Ia As reEuh n is
4sltrved tbsre vdu be q uuick return "a
Missouri 10 scent fares. and Prank HEEs--
rnEn for the eighteen companies involved
asserts todHr'E decision sounds the death
i-reu uf the s-csnf rate IN every stats IN
the urIi0u-
Judge McPhs-son held thE7 both the con-
rnodfty END the passenger lsWs were con-
fiscsfu-y and unconstitutional and M
HaEe-rnan declared that il iE nut cnnceiv-
able that the Scent rate is rnnfisnEtury
In Missouri Il rsn be compensatory N
other states
The state. o. the other hand, declared
ernphB ticallT thai MiEsouris tiEht Tor
lower rates would cortiuus.
EIHutt w Major the oew3y-slerted at
turnsv general who Eucoeedsd Herbert :.
FIadlev To 1hE- Office and vas IN uuurr to-
cay when 1hs decision was read, said an
aupesl would be taken and fhB5 the pres
sr7t legislature would bs asked 70 pass rev
rate laws that v-ould slHnd the test Df tns
courts Governor HBdlsE made similar
statement a. Jefferson City
Trial Last. Several Mantha-
gudrs Smith Mcpherson. who rendered
today's decision is presiding Judge of the
United States circuit court for the south
s-n district Of Iowa He sat through the
1snr1fr trial uf the case that has covered
several months time and had worked on
ms sririun for q mun1h past He left to
night for Council Bluffs, Ia, 10 open court
there.
There was . notable array uf uu-pc-stion
attorneys IN court today They included
Frank HBEHrman Kansas City special
counsel for eighteen railroads; Gardiner
1 L.sfhrnp ChieaKo. Afchisun, ToYslZh q
Santa Pc: Bur1nn Hanson. Chicago, Cfl4-
uaFu Mnwsukes 81 PREas Geurss p Z
jackson 81 Louis. and Games HAgsrmRn-
s.. sI1arEz. Nass srTa- Kszsas q Texnss VI.
p. Evans. ST. Lsouis. St Louis & ssn
! Francisco. N l. ClHrdy. 81 Louis, MIS-
souri Pacific. J. l. MINIS. 81 Ions, Wa
bash. 6 Va Moore. Kansas CITY, Kansas
CITY Southern Z. L ScE-Tit1 Kansas Csty,
Chicago & Alton. John r Lucas Kansas
/ City. Kansas City. Clinton & Springfield
o. NJ Spencer, ST Joseph, Chicago, Bur
IinE1on q Quincy: A. c. Briggs ST Paul
| Chicago Great Western
Reasons fer Decisssa.
4 the decision says
Mort Of lsvmen and many lawyers he
! bsrs ths1 The question is whether the rE8
Z WY company a system is earning sur
! cien1 -evsnGs upon the value uf the prop
eTty of the system They believe that I
I the Burlington. Santa Pc. Wabash nr an!
( other railroad system. E earning sncl
money as VII pay al charges Eno expenses
including taxes enc interest. with reason
Ebls diE1osD6K 10 the BtockholdsrE, tina
state rates for state business must stand
CT COURSE M one believes THIS WIN m
given me slightest Er1sntion 10 thu cues
riur- Thai precise question wa before, al
was decided by. Justice Brewer. and Ef
s-Rslza case uf Smy1h against ATnsE Tn
only question iE "a 70 &issour- rates. les
expenses properly charged against ~
same And = this balance ooEE not lsST
sufficient 70 pay a reasonable return, IN
lEE is invalid And Y the railroad Ey-Etsr
of Euv COMPANY iE earning more than
reasonable return by reason q in1srEtEt
rates which affect the people many time
more rhsn local rs1sk, and II suoh intel
state rE1sE are TOO high. congress, siths
hrrtnE E4ons OF through n commission m1E
make The currectiunE
The supreme court during the Ilrsse-
wear. IN the case Of Ciry Of New Fur
AEninsf Cunsuids1ed Gas Company q Ne
p YORK decided rhEt ps- cent was fair En
riEhi 70 - given 70 the owners upon n
y--,,.rtv,,.s m a.uuns PEr,D