Omaha daily bee., 1916-02-16
ROCK ISLAND GIVEN
POWER TO INCREASE
PASSENGER RATES
<oa
Three r. oss s,oA~ Tem.
pOr, ,rSSaoas' Restraining
CNsNS0s.on from Interfer
ing with Rates.
LAW HELD TO BE CoNFIsCAToRY
Road Must Give Bond and Protect
Passengers Refunds Pending
Decision of Case.
NEW SCHEDULE WILL BE MADE

The Chicago, Mock Island & Pa
cific Railway company was given
permission to raise it's passenger
fares in Nebraska by decision
handed down yesterday by Federal
Judge T. c. Munger. Walter /. smith
and Martin ]. Wade. The road is
in the hands of a receiver
The railroad represented in the
hearing that it sustained a loss of
81 of per cent on its passenger
business in Nebraska in 1915 IL
claimed that the 2-cent fare law in
Nebraska is confiscatory and uncon-
stitutional.
A temporary injunction against
the State Railway commission to
prevent that body from interfering
with the Rock Island in the raising
of its passenger rates in Nebraska,
was granted.
The temporary injunction will hold good
until the decision of the case on its
merits.
Possible Refunds Provided.
The receiver OF the road. Jacob NJ.
Dickinson, is ordered to execute bond
of $4,000 and the railway is ordered to
give TO each passenger purchasing a
ticket at more than cents a mile,
coupon or check Identifying the ticket
purchased. In case the cents-a-mile
rate Is held TO be valid eventually the
Rock Il nd, under this order. will have
to repay to ticket purchasers who show
such receipts. the difference between the
actual cost of tickets and the cost as
Il would have been at 2 cents a mile.
The court Ia convinced that the 2-cent
fare rate prescribed by the state law is
of the property OF the rail-
way company. and his not docs not ana
will not yield sufficient revenue TO pay
the operating expenses of the Interstate
passenger business OF the railway COM
peny and to make a constitutional return
upon the investment. and for this and
other reasons this court is of the opinlon
that. house roll No. 267 is violative OF
the constitution OF the United States and
void So far as It requires the Chicago,
Rock Island &. Pacific Railway com
pany 20 charge no IuOEe than cents per-
mile per passenger for the transportation
OF passengers over its railroad in Me-
braslSa. and that obedience to that
statute, during the pendency Of this suit,
will work irreparable injury to the plain
tiff in case the proofs at the final hear
ing establish the same conclusion which
the evidence and proofs now presented
established"
Present Income Inadequate.
The court holds that. 10 enforce the
2-eent fare law as regards the Rock
Island road would be unconstitutional. in
these words:
The present income, measured by the
experience Of the last three years. Is in
adequate to pay reasonable return upon
the actual value of the property as esti-
mated by the railway commission OF the
state OF Nebraska"
The injunction goes into effect as soon
as the receiver of the Rock Island files
files its bond.
The road will boost It's fares In Ne
braska as soon as the schedules can be
made out. IL has the power to raise
them as high as cents a mile. OF course.
the raised rates can be applied only 10
points.
The Missouri Pacific railroad won a
similar victory short time ago.