Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1909-03-17
IMPORTANT DECISION BY JUDGE
SMITH MCPHERSON IN FED
ERAL COURT
LOCAL TARIFFS IN THEMSELVES
SHOULD BRING FAIR
PROFIT.
susTAINs CONTENTION OF RAIL.
ROADS THAT MISSOURI RULES
ARE coNFIscAToRY.

Kansas City, March 11-Missouris
two cent passenger and maximum
freight laws were nullifed by deci.
sion handed down here yesterday il
the United States district court by
Judge Smith Mcpherson, Req Oak,
Iowa, AS a result 1t Is believed there
will be quick return In Missouri to
three GENT fares and frank Hagerman
for eighteen companies involved, as
serts that today's decision sounds the
death knell for a two cent rate in
every state in the union.
Judge Mcpherson held that both the
commodity and passenger laws were
confiscatory and unconstitutional, and
Hagerman declared it is not conceiva-
BILE that if two cent rate is confisca-
tory in Missouri it can be compensa-
tory in other states.
The state, on the other hand, de-
clared emphatically Missouri's fight
for lower rates would continue. Elliot
w. Major, the newly elected attorney
general who succeeded Herbert S..
Hadley to that Office, was in court
when the decision was read and said
an appeal will be taken and that the
present legislature will be asked to
pass new rate laws that would stand
the test of the courts. Hadley made
a similar statement at Jefferson City.
The Discision.
The question: said Judge Nc
Pherson in his decision, lis whether
the traffic wholly within the state Of
Missouri generally referred to in the
evidence as local traffic, can be
carried under the freight rate statute
of 1907 and the passenger fare statute
of 1907 at such profit as will give a
reasonable return after paying eX-
penses upon the investment, or
whether such traffic is carried at
loss or less than such reasonable pro-
fit. & The court has reached the
conclusion that upon this question the
statutory rates fixed by either and
both statutes are not remunerative."
In giving the reasons fur such con-
clusions the decision says: "The I'M
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
railway companies have the burden
of removing this presumption, and
showing that the statute clearly, or as
some courts say, palpably, and others
say, beyond a reasonable doubt, that
the statute is invalid. In these cases
the court has recognized this rule.
form a long and unbroken line, with
the single exception of the majority
opinion in the Pennsylvania case de-
cided year ago. And that one au-
thority 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
immaterial. Much was said in argu-
ment as to the message of Governor
Hughes, of New York, two years ago,
in declining to approve the two cent
Hughes had the moral courage to
veto measure of popular favor be-
cause as he believed the question had
not been fully considered But the
relations of a governor to proposed
legislation, and those of a court to
legislation contaminated, are entirely
different.
Most of the laymen and many law
yers 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 of the
Burlington. Santa re, Wabash or any
other railroad system is earning such
money as will pay all charges and ex-
penses including taxes and interest,
with reasonable dividends, Ito the
stockholders, that state rates for
state business must stand. Of course
no one believes this who has given the
slightest attention to the question.
That precise question was before, and
was decided by Jusice Brewer, and
affirmed by the supreme court in the
Nebraska case of Smyth VS.. Ames,
The only question is as to Missouri
rates, less expenses properly charged
against the same. And If this bal
anee does not leave sufficient to pay
a reasonable return, the law is in.
valid. And if the railroad system of
any company is earning more than a
reasonable return by reason of inter-
state rates, which affect the people
many times more than local rates,
and if such interstate rates are too
high. congress either acting alone or
through a commission must make the
corrections.
THE supreme court during the
present year in the case of City of
New York against Consolidated Gas
company of New York. decided that
six per cent was fair and right to be