The Washington herald., 1910-09-22
STATE RATE LAW
HELD TO Be INVALID
Reductions in Minnesota Are
Called COnfiScatOry.
MUST RESTORE OLD FIGURES
Acts of Legislature Unconstitutional
When Passenger Fares or Freight
Rates Are Reduced-Statc VIII
Seek Speedy Review so the Case
Can Go to the Supreme Court.

ST. Paul. Sept 21.-Railroad rate legis-
lation passed by the State legislature
In the past several years received a body
blow this morning in the decision Of
Judge Charles z. Otis, as master, that
rate reductions ordered are conf1scatery.
and therefore unconstitutional The rail-
roads are also enioined by the decision
from keeping the rates in effect in the
State
The 2-cent passenger rate and the re-
cent reduction Of freight rates in all
commodity lines must now be increased
10 the old figures prevailing before the
beginning Of the state railroad and ware
house commissions attempt 10 reduce
them.
The decision holds that any attempt on
the part OF the railroad commission TO
adjust rates IS a discrimination against
the regulation Of interstate commerce,
and therefore unconstitutional The ef-
feet Of his decision is apparently wide
enough 10 nearly wipe out the rate-mak-
ing powers Of the railroad and ware
house commission. The decision will be
appealed if the masters findings are sus-
tained by the court.
Law L. Unconstitutional.
The main feature Of the decision is its
! reference to the unconstituuonality OF
the laws and orders. Of which there are
nine.
In part. the decision says: THE rates
complained of and recited In the bill of
complaint operate as a burden upon and
interfere with a regulation Of and are
unjust discrimination against commerce
between the States conducted and carried
on over and upon the lines Of railroad of
the companies.
And each of them IS conhscatory and
depriyes the complainants of their prop
/ erty without due process of law, and
therefore said acts and orders are, and
/ each OF them is. hereby declared 10 be a
4 violation of the Constitution OF the United
States. and each Of them IS void and Of
no effect"
! The suits were filed by attorneys rep
| resenting the stockholders Of the Great
/ Northern, Northern Pacific. and Mime
apolis and St Louis railroads. but all
other railroads operating in the State are
affected by the decision. The railroad
attorneys took no part I'm the cases. They
were brought by the stockholders as a
third party affected, and the railroads
were, in effect, defendants In the suits.
Inc injunction granted enjoins the rail-
roads from continuing the present rates
and orders the officers of the various
companies TO put the former schedules
into effect
Victory n Sweeping One.
The bill of complaint contained nine
separate counts. three of which were de-
cided in favor Of the stockholders to-day.
In no case did the State win its conten-
ton The victory is the most sweeping
ever obtained by the railroad companies
in the country and its effect will be inn
mediate.
The two main points argued by the at
torneys for the stockholders we're: First,
That the rates interfere with interstate
! commerce: second. that the rates are
eonnscatory. The court uphoIds both
contentious.
The cases have occupied the time OF
Judge Otis for two years.
The findings are not final. I'm that they
are not the rulings OF the Circuit Court.
which must pass on the decision before
giving it legal effect. The decision Is
in effect. recommendation to the Cir
cuff Court. which has the power TO re-
I verse OF refuse to accept after an ex-
animation of the records of the case.
1t is possible that several weeks If not
months will elapse before the Circuit
Court takes any action, although 1t IS
thought the State will make efforts Il
obtain a speedy review OF the matter
after which plans can be made 10 ap
peal TO the United States Supreme Court