Omaha daily bee., 1915-11-05
FEDERAL COURT
KNOCKS OUT TWO
CENT FARE LAW
Federal Judges Sanborn, Munger
and Pollock Decide Missouri Pa
oific May Charge Three
Cents a Mile.
STATE MAY NOT INTERFERE
To Put Up Fifty Thousand-Dollar
Bond to Protect Passengers Till
Final Hearing of Case.
RAISE GOES IN EFFECT AT ONCE

AS soon as the tariffs can be pre-
pared and distributed, the Missouri
Pacific Railroad company will start
charging passengers 3 cents per mile
for riding over its lines in Nebraska.
This will probably be within the next
three days. The federal court haS
decided that the Missouri Pacific may
legally charge this rate and has
granted temporary restraining or
der against the Nebraska State Rail-
way commission, preventing that part
e. the state government from inter
fering in the putting in of the ad-
vanced rate.
Before Circuit Judge Sanborn and Dis
trict Judges Munger and Pollock, j. A.
G. Kennedy, general attorney for the
Missouri Pacific in Nebraska has won
his suit against the Nebraska State Rail-
way commission. The decision is based
upon the contention of Mr.. Kennedy that
a 2-cent rate on the Missouri Pacific lines
in Nebraska Is not remunerative and Is
not fair and reasonable rate for doing
passenger business within the state.
Road Secures Injunction.
At the same time Mr.. Kennedy secures
an order from the three Judges restrain
ing the Nebraska commission from con-
tinuing the 2-cent rate in effect on the
Missouri Pacific. This order also enjoins
the commission from prosecuting the rail-
road company or any of its officers in
the event they charge rates in Nebraska
in excess of 2 cents per mile.
In other words, so far as the Missouri
Pacific is concerned, the 2-cent per mile
passenger rate law is set aside and de-
clared void until upon final hearing, when
the case comes to trial on it's merits 1t
may be held to be good.
As a result of the decision of the judges
of the federal court, attorneys assert
that all the railroads operating in Ne
braska will attack the 2-cent per mile
law, asking that the railroads be re-
strained from enforcing it. 1t is asserted
that this was the understanding among
the attorneys for the roads at the time
when the Missouri Pacific brought its
suit some months ago.
Was n Starter.
1t was the understanding that the test
case should be made by the Missouri Pa
cific 1t being considered one of the weak
lines and one of the roads having the
most mileage within the state.
That the Missouri Pacific intends to at
once take advantage of the victory won
by Mr.. Kennedy is apparent. for as soon
as the opinion of the court was placed
on file officers of the road telegraphed
to headquarters at st. Louis instructing
that force of clerks be at once put at
work, preparing thetariffs for the 3-cent
rate within Nebraska.
To protect travellers upon the Missouri
Pacific in the event the court finally de-
termines that higher rate than 2 cents
Is not legal, the Missouri Pacific gives
bond Of $4,000. by which it guarantees
10 pay back the excess of cent per mile.
This bond has been filed.
Passengers Get Receipts.
That the Missouri Pacific passengers
may have a record of the extra l per
cent per mile paid each Missouri Pacific
station agent and each train conductor
will be provided with blank receipts.
When a ticket is bought and paid for
one Of these receipts will be given for
all money paid in excess of cents per
mile between stations. Then, at some
time in the future, IL the railroad should
lose in the final determination of the suit,
upon the presentation of the receipts the
excess will be refunded.
Officers of the Missouri Pacific figure
that the decision of the judges will in
crease the passenger revenue of the road,
so far as Nebraska is concerned, fully
100000 within the next year.
The decision of the court has no bear
Ing upon interstate rates. affecting only
business within the state.