The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1909-03-12
MAY END 2-CENT
FARE IN MISSOURI
JUDGE Mcpherson Hands Down
Sweeping Decision in Famous
Railroad Rate Cases
BY Associated Press

vas handed down today b. Judge Mt-
Pherson. Of the United States District
court. in the two cent fare aud me1i
mum freight rate cases, involving
eighteen Missouri lines The railroads
contended that the rates fixed by ms
statutes Of the state were not remun.
erative but coniscatory aud that the
enforcement Of the statutes be en5oiu-
ed. The state brought proceedings 10
have them enforced The opinion in
part, Of Judge Mcpherson follows
The question said Judge McPher
son ia his decision. IS whether The
tranlc wholly within the state Of Mis-
souri, generally referred to 10 the eyi.
dence as focal traffic can be carried
under the freight rate statute Of 1885,
and the passenger fare statute OF 1897
a such profit as win give a reason
able return after paying expenses up
on the Investment. o. whether such
traffic is carried at a loss Of less than
such reasonable profit The Court
has reached the conclusion that upon
this question the statutory rates o.
Cd by either and both statutes are
not rcmuneratlge
10 giving the reasons for such cor.
clusions the decision says The un
questioned and undoubted rule Is that
there is presumption both Of fact
and Of Law in favor Of the validity Of
every legislative enactment The rain
way companies have the burden Of
removing this presumption and show
ing that the statute clearly. as some
Court say pa.Dably a. others say be.
yond "a reasonable doubt. that the sta
tute Is Invalid ln these cases the
Court has recognized this rule The
authorities upon this question form q
long eG1 unhroken line. with the sin
r. exception OF the majority opinion
in the Pennsylvania ease decided q
year ago COS AIT, Rep. G76l And
that one authority IS not persuasive
IAN testimony and argument bear
ing upon the question as 20 what con.
slderation the Legislature of Missouri
gave to these enaetments. Is utterly
immaterial Much was said in argu
meut as 10 the message of Governor
Hughes of New York two years ago
in declining to approve the two cent
fare statute Of that state Governor
Hughes had the moral courage to veto
measure Of popular favor because
as he believed the question had not
been fully considered But the rela-
tons Of governor 10 proposed legia.
lation. and those Of a court TO leRisla.
ton oonsumated, are entirely differ
ent
Most OF laymen aud many lawyers
believe that the question Is whether
the railway company as system IS
earning sufficient revenue upon the
value Of the property of the system
They believe that # the Burlington
Santa fe Wabash. OF any other rail-
road system is earning such money as
will pay an charges and expenses ln-
cuding taxes aud interest. with rea.
sonable dividends 10 the stockholders
the state fates FOR state business must
stand OF couse no one believes this
who has given The slightest attention
TO the question That precise ques
tion was before. aud was decided by
Justice Brewer aud affirmed by the
Supreme Court IN the Nebraska case
OF smyth rs Ames The question Is
as 70 Missouri rates. less expenses
properly charged against the same
And II this balance does not leave
sufficient % pay reasonable return.
the law Is invalid And It the rail-
road system Of any company IS earn
Ing more than d reasonable return by
reason Of Interstate rates. which af
feet the people many times more than
local rates and If such interstate
rates are too high, congress either
acting alone or through q commission
must make the corrections
Maximum freight law as passed by
the legislature involved reductions
ranging from two 10 forty per cent on
heavy freight 81 car lots. The rail-
ways secured an order temporarily re-
straining the state officials from pat.
ting the act into effect. and on june
~ 1907 Frank iiagerman represent
Ing the various railroads. petitioned
the court to make this order pernan
ent By mutual agreement. and at
the suggestion Of Judge Mcpherson.
who desired % have a practical test
the two cent passenger rate law was
put into effect June II. 1907
After todays decision was handed
down, the views Of attorneys for both
sides that this would be done. or II /
done when such action would be taken
was sought as to whnt immediate ef.
feet The opinion would have, and while
several railway attorneys lntimated
that individual railroads would go