The Topeka state journal., 1909-01-19
is NO GOOD.
Judge Hazen's Findings in the
Freight Rate Case.
Holds That Proposed ScheduesI
Are Unjust.
HIS REPORT is FILED.
Applies to LeavenwOrth, Topeka
& Southwestern.
Recommends That Permanent
Injunction Be Granted.
lis REPORT is FILED.

Kansas City, Kan, Jan. 19.-An
opinion which will prove of great val
ue to the Leavenworth & Kansas rail-
way company, was contained in the
report of Judge q. T. Hazen of To-
peka, special master, which was filed
in the United States circuit court here
today.
Judge Hazen in his report finds that
the freight rates proposed by the rail-
road commission would conhscate the
defendants property. and that the
Ieavenworth e Topeka is entitled to
an injunction until such a time as the
roads affairs reach such a state that
the proposed rates will not be confs-
catory.
This is considered a great victory
Tor the L. & T. road. There is moth
ing binding in the report of Judge
Hazen, but Judge Pollock of the Unit
ed States circuit court will undoubted-
ly follow the findings and will enjoin
the Kansas state board of railroad
commissioners from enforcing the
proposed rate order.
G. F. Grattan, attorney for the
state board of railway commissioners,
at the request of the State Journal.
today made public the following an
nouncement of the history OF the
Leavenworth & Topeka railroad case
and the findings of the special master
for Judge Pollock of the United States
circuit court as follows:
THE old LeaVenworth, Topeka SS
Southwestern was foreclosed in 1899.
and was sold in the federal court. and
in the fall of 1899 Edward Wilder. the
treasurer of the Santa Fe, bid in the
old road for 100000. (And IL would
seem that he bid it in for the Santa
Fe and possibly for the Union Pacific
also) And on December 29 1899, the
Leavenworth & Topeka Railway COM
pany was Incorporated, fixing it's capital
stock at $250,000. which was divided
| into $500 shares of 500 each. The
aT-fo GhnUG that the Santa En held
| 246 shares and the Union Pacific 241
| shares, and the parties Incorporating
| the company were A. l.. Williams. c. T.
| Mcclellan, Edward Wilder, N II
Loomis, and A. A. Hurd and N. H
Loomis, J. o. Brinkerhoff, A. l.. Will
liams, officers of the Union Pacific, and
! c. L. Mcclellan, Edward Wilder, A. A.
| Hurd and II. u Nudge, officers of the
| Santa Fee are named in the charter as
| the board of directors, and each direc-
| tor is shown to hold one share of the
capital stock And on Dec. ~; 1888: ,oo "a
| ward Wilder assigned his bid of $lOO'-
900 for the old road to the Leaven-
worth & Topeka Railway company.
The Atchison, Topeka & Santa Fe Rail
| way company and the Union Pacihc
| Railroad company entered into a writ
| ten agreement purporting to be dateu
| the oath day of Feb. 1900 in which they
| agreed with each other that they own
and control the entire capital stock OF
the Ieavenworth & Topeka Railway
| company and agreed that at every
meeting for the election Of board OF
directors 3 persons shall be selected ana
nominated as directors by the Sant1
Fe and 3 by the Union Pacific, and ohS
person. acceptable to both the parties
| hereto. shall be agreed upon and noinl-
mated by them jointly
seWhen the board of railroad com
missioners made the order reducing
| freight rates between points "i.Ein tns
state. the reads, affei having tuil anu
annie opportunity to present thelr
side declined to make any showing.
and when the state was contemplating
commencing an action of an equitapie
nature in the supreme court Win y
view of enfor0iug such order IN Whlch
the railroad would have had an oP-
nortunity 10 have made every claim
aeainst all that was done by the boara.
and If would then have been for the
snrrcrne court to have determined
whether the order was just, fair ana
reasonable and if the order shoulu
he enforced, or if not to what extent
II should be enforced-betore tne
state could commence sueh proceea-
ings and have full and fair inquiry
the roads prematurely flew into the
federal court to prevent the state from
nroceeding under the laws to make
such inouiry with a view or IRE
vocably fixing the freight rates named
in the order After the supreme court
had nassed upon the matter. II the
roads felt that the rates fixed were not
compensatory, they then could nave
gone into the federal courts ana nau
the same questions there again deter
mined anew. While the civil action
is pending in the supreme court no no
panaIties ere incurred and the rates
are not in effect under the state law