The Birmingham age-herald., 1909-04-07
Majority Opinion of Court of Appeals AnnuIs DeCfees
 of Judge Jones
AUTHORITY OF FEDERAL
 COURTS IS SETTLED
Judge Shelby Delivers the Opinion and Declares That Cases Should Have
 Been Carried To State ss
 Supreme Court.

New Orleans, April s.-Cspeeial. .)-The United States court of appeals today, by a majority opinion, Judge Pardee dis senting, reversed and annulled the decrees of the circuit court of the United States for the Mid dle district of Alabama and dissolved the injunctions granted by that court against the Alabama railroad commits sion and oth CTS in the famous railroad rates cases which have been the sub ject of agitation and bitter controversy In the state of Alabama for the past two years.
 At two regular sessions and one spe- cial session the Alabama legislature enacted number of statutes regulat- ing freight and passenger rates to be charged on the railroads within the state. These statutes were the fruitIon of the spirited campaigns conducted for the reduction and regulation of rates and reconstruction of the rai,- road commission, the result of which vas the election of the present state administration Tine railroad companies concerned resented the action of the ad- ministratlon in causing the passage of what they regarded as drastic legls,a- ton affecting the conduct of their bus mess within the state, and applied 10 Judge Thomas c. Jones of the United States circuit court at Montgomery for temporary restraining order and. later preliminary injunction restraining the enforcement or attempted enforcement n l0 Cfnf Iarx laxrt tt. mission or other officers of the state charged with that duty.
 Called Special Session.
 These injunctions were granted dur ing the spring and summer of last year and Governor Conner called the special session which convened in November. 1907. This session did not alter or amend the passenger rate of 2k cents per mile prescribed by the regular ses- sion. but repealed the '110 commodity act" and enacted in it's place what are kown as the eight group acts" being eight separate statutes which classified the railroads and grouped the commod- ities
 Several prominent railroads in the state compromised rath CT than join in the fight to nullify the laws governing them, while the complainants in these cases maintained that the rates were confiscatory and violated the due pro- cess clause of the federal constitution as well as like provisions of the state constitution. They also asserted that the statutes unlswfully delegated leg islative power to the railroad commits sion. The records contain about 1000 pa ages, a large part of which Is taken up by affidavits of officials of the rail- roads and other witnesses respecting past earnings, value of railroad prop critics, cost of operation and other ex- pert opinion testimony and statistics. The record was silent as to the effect of the practical test of these rates by by the non-contesting railroads which have tried them in actual operation for about two years. No appeals were taken by the state from the decree enjoining the laws enacted at the reg ular sessions but the special session repealed the most important of those laws.
 The railroad commission and the oth- CT defendants assigned that the cir cult court erred In granting the in- functions and appealed to the circuit court of appeals The cases were argued elaborately about 20 days ago by . distinguished array of counsel before Judges Pardee, Mccormick and Shelby.
 It seems that the opinion rendered will serve to settle in the minds of the people the fact of the Jurisdiction and authority of the federal courts in such matters and at the same time to check the improvident issuance of preliminary injunctions, especially in cases where great public interests are involved.
 Judge Pardee. in dissenting, granted the constitutionality of the state railroad commission. but held that the evidence as to the possibility of the rates being confs- catory was sufficient to entitle the rail- road companies to the protection of the court pending the outcome of the suit.
 Shelby Delivers Opinion.
 Judge Shelby delivered the opinion for the court, as follows:
 We assume as true and indisputable that the federal courts have Jurisdiction and authority to annul and enjoln acts of a state legislature that are confiscatory or otherwise in conflict with the constitution; that they have no right to decline to exer- else such jurisdiction when properly in- amount involved is sufficient and there Is either diverse citizenship or a federal question involved, has the right to invoke such Jurisdiction; that when such juris- diction has attached 1t is exclusive, in tho sense that state courts or state authority
 
 fC0MrTNUWn ON PAGA n