The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1913-06-12
RATE CASES DECIDED
State Wins Victory by Decision of
United States Supreme Court
Handed Down Monday.
According to Attorney General Smith
Two-Cent Fare Will Be Re-
stored in Thirty Days.

stored in Thirty Days.
The state of Minnesota won sub
stantial victory in the supreme court
on Monday when the Minnesota
state rate case, Justice Hughes for
the court, held that the rates fixed
by the legislature for the Mime
apolis & ST. Louis railroad were con-
fscatory and unconstitutional, but
that the rates imposed upon the
Great Northern and Northern Pacific
were valid. The decision is victory
for the state on the Interstate COM
MERGE phases of the controversy and
upon the confiscatory features with
the exception of the portion affect
ing the Minneapolis & ST. Louis
road.
In the opinion Of the court, which
covers eleven sections, the points
at issue are specifically set forth.
The so-called state rate cases have
presented to the supreme court one
of the momentous problems of the
decade In general terms, this group
of cases called upon the court to de-
eide two questions. One was
whether the states, in passing laws,
had unduly interfered with inter-
state commerce. The other was
whether those laws confiscated the
property of the railroads by requir-
ing them to transact business at a
loss.
The group consisted of As cases.
All arose out Of legislation enacted
by state legislatures about 1907, or
just after the federal government
had passed the Hepburn rate law.
The IS cases concerned directly the
laws in six states-Mjnnesota, Mis-
souri,, Kentucky, Oregon, Arkansas
and West Virginia. Similar litiga-
tion arose in Alabama, Iowa, Kan
sas, Nebraska, Oklahoma and South
Dakota. In all, it was said that 76
suits 90 in federal courts depended
upon the decision in the As cases be-
fore the supreme court.
The first of the As cases to reach
the supreme court were the Missouri
rate cases.
The Minnesota rate cases arose out
of suits by stockholders of the
Northern Pacific, the Great North.
ern and the Minneapolis & St. Louis
railroads against the companies tt
enjoin them from obeying the max
imum freight and 2-cent passenger
laws as unconstitutional and against
the state officials to enjoin then
from enforcing the laws. Judge San
born of the United States circuit
court for Minnesota held the laws
unconstitutional, of confiscatory
nature, and that they burdened in
terstate commerce. The three suits
were appealed to the supreme court
The contest over the Interstate
commerce feature Of the controversy
was similar to that in the Missouri
cases. In the Missouri cases, how
agreed upon the valuation of thu
railroads, upon which the percen
tage of income from rates was to b,
figured. No such agreement wa!
reached in the Minnesota cases, ant
a bitter contest arose over the hold
ing of Judge Sanborn that the fai
valuation of railroad property wa
it's ''cost of reproduction new
The 2-cent-a-mile passenger rat
will be in operation again on al
Minnesota railroads in about thirt,
day as result of the United State
supreme court decision in the Mime
sofa rate case, according to Attorne.
General Lyndon A. Smith.
Meanwhile, every purchaser of :
ticket on railroad in Minnesota
for transportation between points,
within the state, will be given a re
ceipt, if it is asked for, and will gel
refund when the 2-cent fare be
comes operative. ~ ..
Every holder of receipt for pur
chase OF passenger ticket in Min
nesota, at any time after June
1911, except in the case of the Mime
apolis and St. Louis road, will b.
able to collect the difference between
2 cents and cents mile by films
claim with the state railroad ant
warehouse commission.
All shippers of merchandise who
since June l, 1911, have paid tn,
rates demanded by the railroads il
Minnesota. and who have expens
bills, will be able to collect the diff
ference between the rates ordere,
by the state commission and thos
actually collected by the railroads.
Shippers may also collect the differ
ence between commodity rates fxe,
al.-