The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-04-09
Minnesota G asses De-
cided Adversely to
State Commission.
REDUCTIONS ARE
CONFISCATOnY
Court Holds That Action Of Com
mission Would Prevent Fair
Return on Money Invested,
and Interferes With Inter
state Regulation, Right of
Federal Government.

st. Paul. Mimi. April a.---Judge Wal
ter H. Sanborn, senior United States
circuit Judge, Eighth judicial Circuit.
in an exhaustive opinion handed down
to-day, decided the Minnesota ratio
cases against the members Of the Min
ncsota State Railway Commission on
the grounds that the necessary effect
OF tho reductions ordered was substan-
TALLY TO regulate interstate commerce,
TO create unjust Determinations be-
tween localities in Minnesota and those
In adjoining states in violation OF the
commercial clause of tho Constl..-,ion.
and to take tho properties OF the rail-
road companies without just compcn-
sation In violation Of the fourteenth
amendment to the Constitution.
stock holders Sue.
The suits were brought by stock :
holders of the Northern Pacific Rail-
road Company, the Great Northern
Railway Company and the Minneapo-
lis and St Paul Railroad Company
against those companies. the Attorney
General and the members of the Rail-
way and Warehouse Commission OF
Minnesota TO enjon the reduction of
the passenger rates in Minnesota from
3 cents to cents a mile. the mer-
chandise rates 90 per cent. 10 20 per
cent. and tic conmou.ty rates T.3t
per cent
The railroad companies had put all
these reductions except that OH com
modify rates into effect, and the cases
were commenced and tried after the
effect OF these reductions had become
probable. Full proof of the facts or
the case was made through many
months before. Charles Z. Otis, special
master, who reported the facts and
recommended DEGREES in favor OF til e
stockholders. Judge Sanborn render
ed DEGREES to-day, which affirm the re-
port of the master and enjoins the
enforcement OF the reductions after
January l. 1911.
Prohibits Fair Return.
The court. In its opinion, states that
the rates prescribed by the State Com
mission brings from their respective
Minnesota intrastate businesses to the
Northern Pacific Company an annual
net income OF only 2.909 per cent: to
the Great Northern Company an an
nual net income OF only 1859. and to
the Minneapolis and st. Louis Com
pany an annual net income of only
2.476 per cent. of the respective values
of their Minnesota properties devoted
TO those businesses. The court holds
that this would prohibit fair return
upon these values. take the properu.
or the companies without Just com
pensation. violate the fourteenth
a n
are void.
'"ro the extent that It does not suh-
Htantially burden or regulate inter
state commerce." the court continues
n State may regulate intrastate COM
merce and the fares and rates therein
within lis borders, but no farther. ~
may inforce regulations Of intrastate
commerce and it's fares and rates which
only incidentally or remotely affect In
terEtatH
orders and regulations concerning in.
trastate commerce or the fares or
rates therein. which substantially bur
den OF regulate Interstate commerce
or the fares or rates therein, arc be-
yond the powers of the State. uncon-
stttutional and void. And where the
attempted exercise OF the power OF
State to regulate intrastate COM
merce or the attempted exercise Of any
Of its other powers impinges upon or
conflicts With the constitutional pow
or Of the nation to protec lie freedom
OF and to regulate interstate commerce
and tho fares and rates therein, the
latter must prevail. because that which
is not supreme must yield to that
which Is supreme"
Unjust Determinations.
'SThe unavoidable effect OF general
and sweeping reductions OF intrastate
fares and rates in Minnesota made by
the acts and orders considered was and
IS substantially to burden, directly to
regulate and to discriminate against
the interstate commerce OF the defen-
dant companies and TO create undue
and unjust Observation-Disclosures be-
In other statos In violation Of the
commercial clause of the Constitution"
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ln1nKIsto ran caI NaAo