Omaha daily bee., 1909-09-26
Nebraska
SIBLEY Law IS HELD VALID
Express Companies May Appeal to
Commission II Rates Don't Suit.
FREE HIGH SCHOOL LAW GOOD
supreme Court Refuses TO Grant a
RehearinE I'm the N-onPartisan
Judiciary Law Csse-POst-
masters Indicted.
ZION q staff Correspondentl

prom a Staff Correspondent
LINCOLN. Sept 25.-Cspecial)-The SUI
prome court today upheld the constitu-
ticnality Of the Sibley law, which reduces
rates on express business Is per cent be-
low the rates in force prior to January l.
1901, the year the act was passed. by a
republican legislature. The litigation was
commenced by Attorney Thompson, who
obtained a temporary restraining order to
prevent the express companies from
violating the law. This order is now made
permanent by the opinion Of the supreme
court, written by Judge ]. b. Barnes. Chief
Justice Reese and Judge w. b. Rose did
not sit in the case. BY the order Of the
supreme court the defendant companies
may apply to the State Railway commits
sion IL they are still dissatisfied with the
rates prescribed by the Slbley law.
The defendant express companies fought
the case from the start and once trans
ferred It to the federal court. but the
judges Of the federal court In Nebraska
remanded 1t to the supreme court. Testi-
mony was taken in New York city and at
other places before a referee, Judge John
J. Sullivan. The referee adopted the
method Of distributing the income OF the
companies on state and interstate business
on the revenue basis as contended for by
the attorney general, instead Of the pack
age basis insisted on by the companies.
The court has adopted the referees report
and the Injunction Is made permanent.
The syllabus of the opinion is as follows:
4 Holding of the Court.
4 statutes fixing maximum rates which cor
pOrations, Joint stock companies or persons
whose property is devoted to public use,
may charge and receive as compensation
for their services, are presumed to be con-
stitutional; and the burden Of proof Is on
him who challenges their validity to show
by a preponderance of the evidence that
the legislation complained Of clearly con-
ravenes some provision of the constitu-
ton.
When an attempt is made to strike down
a rate statute, 1t is incumbent on the at
lacking party to make full, fair and com
plete disclosure of all Of the revenue de-
rived from the business and the disburse-
ment of the same for all purposes, In
Guiding salaries paid to all of its officers,
agents and employees, so that IL may be
whether such salaries and ex-
penditures are necessary as we'll as rea-
sonable in amount.
When the courts are called upon to ad
Judge an act Of the Legislature fiSu
rates for express companies unconstt
tional on the ground that they are
reasonable and confiscatory, they shot.
be fully advised as to what is done wiz.
the receipts and earnings of the company,
IOT III so ADVISED II might clearly appear
tina a prudent and honest management
within the rates prescribed would secure
10 the company a reasonable compensa-
ton for the use of Its property and for
conducting its business.
a court of equity ought not to interfere
With and strike down an act of the legis-
lature fixing maximum express rates be-
fore n fair trial has been made Of con-
iinuing the business hereunder and in ad-
vance OF any actual experience of the prac-
teal result of such rates.
NIaH 10
sideration OF all the evidence that the rates
complained Of are not confiscatory, but af-
ford the express company at least some
measure of profit FOR carrying on its bust
ness. the courts will not Interfere with the
operation of the statute, but will require
the party complaining to apply for relief
TO the power. or the tribunal
provided by the statute with power to in
crease such rates II they are alleged to be
unreasonable.
A rate statute will not be declared I'M
constitutional on the ground that Ii pro-
vides drastic penalties for Its violation. un-
less II appears that the penalty clause was
that clause eliminated the remainder of
the act Is incomplete and incapable OF en-
forcement.
Free High school Law Upheld.
In the case OF Thomas M. wilkinson
ngainst Joshua S. Lord, an appeal from
Richardson county, the supreme court up
holds the constitutlonaiity Of the free high
school law of 1907. Several acts Of the
same character Of previous legislatures
failed to stand the test, but this act is
held TO be valid. Judge James K. Dean,
who was for many years a member of a
school board, wrote the opinion OF the
court. The law makes the home district
Of the student liable for the payment Of rs
cents a week,
The court holds that a title declaring a
legislative purpose to provide a four-year
course of free high school instruction for
pupils residing in districts where that
privilege is denied is broad enough to cover
taxation for the purpose stated and leglsla-
tion to prevent school districts from de-
feating the act by refusing to vote taxes.
The free high school law of 1907 is held
b. the court to be an independent act and
ITS validity must be tested by the rule
that changes or notifications Of existing
statutes as an incidental result OF adopting
a new law covering the whole subject to
which II relates, are not forbidden by
section II. article III OF the constitution,
relating to the amendment OF statutes.
Bishop Gets Reversal.
Bishop Bonacum has obtained a reversal
of the judgment Of the lower court in
the matter Of the estate of John Manning,
deceased.
Manning died In Furnas county. His
wife was then incurably insane and he
willed one-third OF his property for the