The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1911-04-14
RAIL LAW Invalid
FEDERAL COURT DECISION HOLDS
TWO-CENT FARE NULL
AND VOID.
ALSO FREIGHT RATE RULINGS
Minnesota Commissions Merchandise
Tariffs Also Knocked Out
Case to Be APP
pealed.

~. "dllSI Odu-
born, senior United States circuit
judge, Eighth judicial circuit, in an
exhaustive opinion decided the Min
nesota rate cases against the mem
bers of the Minnesota state railway
commission on the grounds that the
necessary effect of the reductions or
dered was substantially to burden and
directly to regulate interstate COM
merce, to create unjust discrimina-
tons between localities in Minnesota
and those in adjoining states in viola
ton of the commercial clause of the
constitution and to take the proper
ties of the railroad companies with
out just compensation in violation of
the fourteenth amendment to the con-
stitution.
The suits were brought by stock
holders of the Northern Pacific Rail-
way Company, Great Northern Rail-
way Company, and the Minneapolis &
st. Louis Railway Company, against
these companies, the encouragement
and the members of the railway and
warehouse commission of Minnesota
W SuyOlu Tic IOuuCllOu VI tuS pdooSu-
ger rates in Minnesota from three
cents to two cents mile, the mer-
chandise rates 20 to % per cent and
the commodity rates 1877 per cent.
Support Masters Decision.
The railroad companies had put in
to effect all these reductions, except
that on commodity rates, and the cases
were commenced and tried after the
effect of these reductions had became
provable. Full proof of the facts of
the cases was made through many
months before Charles E. Otis, special
master, who reported the facts and
and enjoin the enforcement of the
stockholders.
Judge Sanborn rendered DEGREES
which affirm the report of the master
and enjoin the endorsements of the
reductions after June /, 1911.
No sooner were Judge Sanborn's de-
cision sustaining the findings of Spe-
cial Master in Chancery Otis and de-
Gliding fatty against the contention of
the state in the rates cases than plans
"CIC SOlluCISCu lIIlhCuloICly W vail
the case to the supreme court.
Former Attorney General Edward T.
Young and E. S. Durment, special at
torneys for the state in the proceed
lngs, held a conference in the office
of Mr. Durment.
1.-The states contention" said Mr.
Young, lis absolutely overthrown by
CT Will fob
steps Immediately to appeal to the
United States supreme court. The de-
cision destroys the two-cent fare law,
the commercial rates established in
1907, the commodity freight rate and
absolutely denies the right of the state
to regulate railway traffic. The fed
eral government has no such bar and
if the state is denied the right it
means there is no way of railway reg
ulation. The decision acknowledges
the right of the roads to fix their own
valuation and acknowledges their
right to earn per cent on this valua-
ton
Joy in Railroad Circles.
In railway circles there was consid-
cradle quiet joy over the outcome
James ]. Hill and President Louis W.
Hill of the Great Northern went into
conference Immediately after the de-
cision was rendered and could not be
reached President Howard Elliott of
the Northern Pacific expressed consid-
cradle satisfaction over the result
Members of the state railroad and
warehouse commission are not dis
couraged by the Sanborn decision.
eff the Otis findings are upheld it
will rob us of control over the rail
roads to some extent but not alto
gether. 1t will prohibit us from fixing
full schedule rates, which might in
terfere with interest rates. The case
is an important one to the entire coun-
try. If upheld by the supreme court
it will wipe out the 2-cent fare law
as we'll as our merchandise rates."
Text of the Decision.
Following is the text of the opin-
ion filed by Judge Sanborn:
1.-THE acts of the legislature of
Minnesota of April 4th, 1907, Chap
ter 81, reducing passenger fares with
in the state about 33 1-3 per cent, and
of April 18th, 1907, chapter 232, re-
ducing commodity rates within the
state about 7.37 per cent, and the or
ders of it's railroad and warehouse
commission of Sept. 9Th, 1906, reduc-
ing general merchandise rates within
the state from 20 to 25 per cent, and
of May 8, 1907, reducing rates with
in the state to distributing points, by