Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-04-08
RULING BY JUDGE SANBORN
Holds That the State Has Exceeded
Its Rights.
CONSTITUTION IS VIOLATED
Conflict With Nations Power to
Regulate Interstate Commerce.
Conf1scation Is Also Alleged.

|
ter Ii. Sanborn, senior United States cir
| cult judge, eighth judicial circuit in an
exhaustive opinion handed down today,
! decided the Minnesota rate cases against
the members of the Minnesota state rail-
| way commission on grounds that the
necessary effect of the reductions ordered
was substantially to regulate interstate
| commerce, to create unjust discrimina-
| tions between localities in Minnesota and
those in adjoining states. in violation Of
| the commercial clause of the Constitu
tion, and to take the properties of the
railroad companies without just compen-
| sation in violation of the fourteenth
| amendment to the Constitution.
The suits were brought by stockholders
| OF the Northern Pacific Railway COM
| pany, the Great Northern Railway Com
pany and the Minneapolis and st. Louis
| panies. the Attorney General and the
| members of the railway and warehouse
commission Of Minnesota, to enjoin the
reduction of the passenger rates in Mill
| the merchandise rates 20 per cent to- %
per cent, and the commodity rates 7.37
per cent.
The railroad companies had put into
effect all these reductions except that on
commodity rates, and the cases were be-
gun and tried after the effect of these
reductions had become probable. Full
proof of the facts of the case was made
| through many months before Charles E.
Otis, special master. who reported the
facts and recommended DEGREES In favor
of the stockholders.
Judge Sanborn rendered DEGREES today
which affirm the report of the master
| and enjoin the enforcement of the reduc-
tons after June l, 1911.
He holds in his opinion:
l. Reduction in Rates Void.
"First-The acts of the legislature of
Minnesota Of April 4, 1907 chapter 81, re-
ducing passenger fares within the state
about 33 1-3 percent, and of April 49,
1907, chapter 232, reducing commodity
rates within the state about 7.37 per cent,
and the orders of its railroad and ware
house commission of September 6. 1905,
reducing general merchandise rates with
IN the state from 20 to 25 per cent, and
OF May J, 1901. reducing in-rates within
the state to distributing points by their
natural and necessary effect substantially
burden and directly regulate Interstate
commerce, create undue and unjust dis
criminations between localities in Mime
sofa and those in adjoining states, vio-
late the commercial clause of the Consti-
tuition. article1, section s, and are void.
"SecOnd-TheSe acts and orders which
prescribe maximum fares and rates, that
bring from their respective Minnesota in
traState business to the Northern Pa
cinc Company an annual net income of
only 2.9O9 per cent, to the Great Northern
Company an annual net income of only
1888. and to the Minneapolis and St. |
Louis Company an annual net income Of
only 2.476 per cent of the respective
values of their Minnesota properties de-
voted to these businesses, prohibit fair
return upon these values, take the prop |
critics OF the companies without just COM
penSatfOn, violate the fourteenth amend |
ment to the Constitution and are void.
Rights of the Nation.
'Third-The power to regulate COM
merce among the states was granted by
the people to the nation in the Constitu
tion. is exclusive. may be exercised to
its utmost extent by the use of all |
means requisite to its complete eXer-
else, and no state, by virtue of it's police !
power. or any other power it possesses,
may restrict this grant or the plenary |
exercise of this power, for these inhere |
in the supreme law of the land and are
paramount to the powers of the states.
"Fourth-The fares and rates of trans
portation in interstate commerce are ma |
tional In character, susceptible of uniform
regulation and SO far as the nation has |
not regulated them are free from regula- |
ton by virtue of the commercial clause |
of the Constitution.
"Fifth-The nation may regulate inter- |
state fares and rates and all interstate |
commerce. To the extent necessary COM |
pletely and effectually to protect the free
dom of and to regulate interstate COM |
merce. but no further it may, by it's Con- |
gress and it's courts, affect and regulate |
intrastate commerce.
Rights Of State Defined.
ITO the extent that it does not sub |
stantially burden or regulate interstate |
commerce a state may regulate intra-
state commerce and the fares and |
rates therein within it's borders, but no |
farther. 1t may enforce regulations |