The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1909-03-08
MAY END 2-CENT
FARE IN MISSOURI
Judge Mcpherson Hands Down a
Sweeping Decision in Famous
Railroad Rate Cases.
BY Associated Press.

By Associated Press.
Kansas City, Mo, Mar S-A not
able decision in favor of the railroads
was handed down today by Judge Ne
Pherson, of the United States District
court, in the two cent fare and maxi-
mum freight rate cases, involving
eighteen Missouri lines. The railroads
contended that the rates fixed by the
statutes of the state were not remun-
erative but confiscatory, and that the
enforcement of the statutes be enioin-
ed. The state brought proceedings to
have them enforced The opinion in
part Of Judge Mcpherson follows.
'The question" said Judge MePhcr-
son in his decision, lis whether the
traffic wholly within the state of Mis-
souri, generally referred to in the evi-
dence as local traffic, can be carried
under the freight rate statute of 1897
and the passenger fare statute of 1907
at such profit as will give a reason.
able return after paying expenses up
OH the investment, or 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 fix
ed by either and both statutes are
not remunerative."
In giving the reasons for such con
clusions the decision says: "The un-
questioned and undoubted rule is that
there is a presumption both of fact
and Of law in favor of the validity of
every legislative enactment. The rail
way companies have the burden of
removing this presumption, and show
ing that the statute clearly as some
Court say, palpably as others say, be-
yond a reasonable doubt, that the sta
tute is invalid In these cases the
Court has recognized this rule. The |
upon this question form a
long and unbroken line, with the sin
gle exception of the majority opinion
in the Pennsylvania case decided a
year ago (6S Alt, Rep. 676) And
that one authority is not persuasive.
'All testimony and argument bear
ing upon the question as to what con
sideration the Legislature of Missouri
gave to these enactments, is utterly
Much was said in argu-
ment as to the message of Governor
Hughes, of New York two years ago
n declining to approve the two cent
are statute of that state Governor
Hughes had the moral courage to veto
/ measure of popular favor because
IS he believed the question had not
,een fully considered. But the rela-
ions Of a governor to proposed legis-
alton, and those of a court to legisla-
ion consumated are entirely differ
mt.
Most of laymen and many lawyers
'elieve that the question is whether
he railway company as a system is
arning sufficient revenue upon the
alue of the property of the system i
hey believe that if the Burlington, V
'anta Fe, Wabash, or any other rail S
cad system is earning such money as 3
7ill pay all charges and expenses in
ludilie taxes and interest with rea- t
enable dividends, to the stockholders, \
he state rates for state business must 4
tand OF couse no one believes this a
'ho has given the slightest attention c
} the question. That precise ques- c
on was before, and was decided by
lstice Brewer, and affirmed by the
upreme Court in the Nebraska case 4
Smyth VS.. Ames The question is n
) to Missouri rates, less expenses
roperly charged against the same
nd if this balance does not leave
Efficient to pay reasonable return,
ie law is invalid. And if the rail b
'ad system of any company is earn
g more than a reasonable return by "
ason of interstate rates, which af- W
ct the people many times more than re-
cal rates. and if such interstate g,
ties are too high, congress either He
ting alone or through a commission, So
ust make the corrections" th