Omaha daily bee., 1909-04-10
Indications that Flat ala Cent Rate
Will Be Adopted.
HADLEY TO APPEAL TO CONGRESS
Governor Will Ask National Aid to
Prevent Discrimination.
HAGERMAN TALKS OF SUIT
Attorney for Railroads says the Con-
tention OF state Is Unsound sud
that Temporary order VIII
BE Set Aside.

sr. LOUIS, April 9--Exeoutive end leea
representatives OF the eighteen railroads
in Missouri will meet tomorrow in the office
Of A. j. Davidson, president OF the Frisco
system and It is probable that a fiat 2bp-
cent passenger rate Will be adopted,
Prominent railroad officials today said
there was some talk of continuing the con-
flct with tho state in the matter OF
passenger fare, but the general opinion
tended to a compromise.
Hadley Appeals to Congress.
JEFFERSON CITY, Mo-. April 9.-Thst
congress will be asked to direct an inves-
tigation of the Missouri rate situation by
the Interstate Commerce commission and
that the circuit attorneys throughout the
state should institute suits similar To that
filed In ST. Louis last night, asking for An
Injunction against the announced increase
in passenger fares, were indicated by
Governor Hadley today in discussion OF
the latest steps taken by the state to avoid
the enforcement of the new schedules
IT feel that it Is unfair for the railroads
to attempt to impose upon the people OF
Missouri a higher rate than is charged IN
the contiguous and sparsely settled states
of Kansas Oklahoma, Iowa and Nebraska
said the governor Therefore have today
forwarded to Senator's Warner and Stone
and TO Representatives Clark and Bartholdt
figures showing the disproportonately high
earnings IN Interstate traffic In Missouri as
compared with the earnings on state traffic,
in order that congress may. through the
Interstate Commerce commission, institute
an investigation. L have also presented the
matter to the state warehouse and rail-
road commissioner.
suits similar TO that instituted by the
circuit attorney in st, Louis should be be-
gun by prosecuting attorneys throughout
the state who are not parties to the case
in the federal court.
"The theory upon which these cases can
rest Is that a railroad corporation when u
| is permitted to do business in this state.
makes a contract with the state that il
will obey the constitution and laws and IL
It violates this contract 1t can be enjoined
from doing So"
Attorney General Major gave out state-
ment later in which he declared that the
action of the circuit attorney of 81. Louis
would not cause him to change the plans
OF his office for dealing with the rate
question.
''I Informed Governor Hadley on March IL
that I would await action by the railroads
before proceeding against them" said Mr.
Major 81 informed him of my Intention
to proceed against the roads by bringing
quo warranto proceedings in the supreme
court of the state charging them with
conspiracy to fix passenger and freight
rates In the state in violation of the con-
stitution, the anti-pool trust and conspir-
acy statutes and the common law. That
was all to be predicted upon the assumption
| that the roads would put the increased
rates into effect on April 10
HaEermRn Talks of sutt.
KANSAS CITY, Mo, April s.-F'rank
Hagerman, leading attorney for the eigh-
teen railroads entering Missouri, In
statement made here today declared that
! the states injunction suit. filed yester-
day to prevent the railways from return
/ ing to the Scent fare basis. was unsOund
| In law.
Governor Hadley's 81. Louis suit" said
Mr. Hagerman today, seems TO be based
upon two grounds. both Of which are un-
| sound: % The railroads by making the
| new rate have violated the antitrust
| statute (2) The issue Of mileage books is
| a discrimination. The antitrust statute
| has no application TO railroad rates, but
| by it's terms only prohibits combinations In
the sale OF commodities and insurance.
There " no discrimination because the
mileage books are sold TO all aliks. Any
how the public. not the railroads would
be hurt by an injunction against their use.
for since the s-cent fare law was enjoined
the old law is in force, and this authorizes
cents. Anything less is matter OF
grace from the railroads.
Mrs Hagerman and were starting to
| California when ] heard OF this new move,
but our trip will now be deferred. The
restraining order is returnable Monday
morning, at which time the court Will
probably dissolve II, as It was improvldentiy
! granted and violates the federal court de-
! cree"