The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-03-08
JUDGE MCPHERSON MAKES
DECISION in FAVOR OF
THE RAILROADS
Case Involves Eighteen Missouri Ln-Judge Claims That Railroads
Should Be Allowed to Pay Per Cent Over Cost of Operation and
That When State Attempts Legiae Less Revenue State
Traffic, That Action Shall Be Deemed Unreasonable

ton of Judge Mcpherson, who de-
sired TO have practical test, the two
cent passenger rate law was put into
effect on June IL, 1907, to run three
months At the end Of that period
both sides agreed to continue the rate
In effect as the results obtained had
not been considered sufficient. and tho
law is still being enforced.
After many delays. the cases were
finally brought to trial before Judge
Mcpherson. Both sides presented a
long array Of figures to uphold thoir
claims. The court room was crowded
today with lawyers and railroad men
eager to hear Judge McPherson's de-
cision.
After the decision had been hand
ed down, the Views of the attorneys of
both sides Of the controversy were
sought as TO what immediate effect
the opinion would have While sew
eral railway attorneys intimated that
the Individual railroads soon would
go back TO the three-cent passenger
rate. none was able to state speciflcal-
ly that this would be done, or If done,
when the action would be taken, Frank
Hagerman made the following state
ment To the Associated Press for the
various railroads.
The maximum freight laws have
never been enforced because tenn
porary injunctions were granted when
they became effective. Therefore. the
situation as to them will in the fu-
ture be the same as 1t has been in the
past. The two-cent fare law has, how
ever. been enforced. From the decis-
lon Of the court, the state may appeal
TO the supreme court Of the United
States. Pending that appeal, the rail-
roads will not be bound by the law
and may at any time adopt and put in
force the old rate by publishing new
schedules as required BY law. The
state law requires ten days notice OF
an advance In the state rate: the IN
terstate commerce law requires thir-
ty DAYS notice OF any change in the
Interstate rates What rate the rail
roads will adopt and when 1t will be
put In force must, of course. be deter
mined by the traffic officials after they
have carefully considered the text of
the decision
The two-cent rate is the subject of
Dakota, Nebraska and Kansas. 1t is
not conceivable that. if the rate is
confiscatory in Missouri. it can be
compensatory In any Of such states
What, IL anything, will be done In
ether states, has not been determined
In view Of the thorough investigation
and the decision in the Pennsylvania
and Missouri cases. it is doubtful
whether any state will longer attempt
to keep In force a two-cent fare law
Oklahoma makes provision, therefore.
in its constitution, which may be diff
f1cult to change.
Judge Mcpherson proceeded with
unusual care and caution and at great
personal sacrifice to himself, heard
the testimony orally. He has laid
down In simple words certain rules,
by the use OF which any legislature
seeking TO pass rate law or any rail-
road desiring to contest one. can read
ily determine whether it Is confis-
catory. These rules are: Ascertain
the value OF the entire railroad prop
erty In the state of such value, assign
10 the traffic to which the rate in ques-
tion applies, such proposition as the
ItNtuuc buCH DedIo W Tic
entire state revenue, upon this as
signable value there must be an an
nual return OF at least six per cent;
expenses as between state and inter-
state business must be divided upon a
revenue basis and have added there
TO the extra cost OF doing state busl-
ness over interstate business"
Elliott w, Major. attorney general.
said:
I'VE won't give up the fight for low
CT railroad rates In Missouri. / take
up the case today where Governor
Hadley left It on, and shall continue
his stand We have two forums in
which to fight The one is the highest
tribunal In the republic, the other the
legislative branch of the Missouri gov.
ernment, The legislature Is now In
session. and / Will endeavor TO have
some action taken II possible during
the present session. We are allowed
two years In which to appeal the case
to the United States supreme court,
but we shall take our time"