Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1911-04-18
STATE RAIL Law
IS Hello INVALID.
FEDERAL COURT DECISION HOLDS
rWo.cENT FARE NULL
AND VOID.
ALSO FREIGHT RATE RULINGS
Minnesota Commissions Merchandise
4 Tariffs Also Knocked Out
Case 70 b Ap-
pealsd.

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.
Btitution.
The suits were brought by stock
holders Of the Northern Pacific Rail
way Company. Great Northern Rail-
way Company, and the Minneapolis &
Ct. Louis Railway Company, against
Ehese companies. the Encouragement
and the members Of the railway and
warehouse commission Of Minnesota
Do enjoin the reduction Of the passen-
ger rates in Minnesota from three
cents to two cents a mile, the mer-
ehandise rates 20 to rs per cent and
he commodity rates 1877 per cent.
Support Master's Decision.
s The railroad companies had put in
% effect al these reductions. except
that ON commodity rates, and the cases
were commenced and tried after the
o6oct Of these reductions had became
peovable Full proof Of the facts of
ese 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 1, 1911.
No sooner were Judge Sanborn's de-
cisfon 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
we're commenced Immediately to carry
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.
ings. held . conference in the Office
Of Mr.. Durment.
1.-THE states contention" said Mr.
Young, "is absolutely overthrown by
this decision. OF course we will take
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.
sraf government has no such bar and
II the state IL denied the right it
means there 10 no way of railway reg
ulation. The decision acknowledges
he right Of the roads to fix their own
valuation and acknowledges their
hight to earn per cent on this valua.
hon"
Joy In Railroad Circles.
In railway circles there was consid-
cradle quiet Joy over the outcome.
James J. Hill and President Louis w.
Hin Of the Great Northern went into
conference Immediately after the de-
cision was rendered and could not be
reached. President Howard Elliott of
he Northern Pacific expressed consid-
Srable satisfaction over the result
Members Of the state railroad and
warehouse commission are not dis
oour1eed BY the sanborn decision.
IF the Otis findings are upheld It
win rob US Of control over the rail-
voads to, some extent but not alto
gsther. It will prohibit US from fixing
eull schedule rates. which might in
terfere with interest rates. The case''
3 IN important one to the entire coun-
Try. II upheld BY the supreme court
Il will wipe out the 2-cent fare law
% we'll as OUT merchandise rates."
Text Of the Decision.
Following IL the text of the opin-
ion fled 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 80 Is 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 Ito railroad and warehouse
commission Of Sept. 9Th, 1906. reduc-
ing general merchandise rates within
the state from 20 to rs per cent, and
OF May 3, 1907. reducing rates with
IN the state to distributing points. by
their natural and necessary effect sub
stantially burden and directly regulate
interstate commerce. create undue and
unjust determinations between locali-
ties in Minnesota and those in adjoin-
Ing states. violate the commercial
clause Of the constitution. article 1.
section 8. and are void.
"2-These acts and orders which
prescribe maximum fares and rates.
that bring from their respective Min.
nesota intrastate business, to the
Northern Pacific company an annual
net income Of only 3.85 per cent and
70 the Minneapolis Z st. Louis com.
pany an annual net income Of only
2.47 per cent Of the respective values
Of their Minnesota properties devoted
to those businesses, prohibit affair re.
turn upon these values. take the prop
critics Of the companies without just
compensation. violate the fourteenth
amendment to the constitution and are
void. al
Federal Power Held Supreme.
IS. The power to regulate commerce
among thu atafea was granted nv the