Omaha daily bee., 1916-10-17
ANOTHER POINT
|. FOR RAILROADS
IN RATE FIGHT
Nebraska State Railway Com
mission Loses First Round
of Battle to Sustain Now <
Famous Order No. 49,
INJUNCTION Is GRANTED
Federal Court Allows Roads to
Temporarily Maintain Higher
Schedule Of Charges.
SOME PROVISIONS MADE
INJUNCTION is GRANTED
SOME PROVISIONS MADE

q
Another point in Nebraska's noted
freight rate case was decided in favor
Of the railroads in operation in this
state late yesterday afternoon, when,
in the United States district court for
the Omaha division, Federal Judges
]. w. Woodrough, Walter I. Smith
and James d. Elliott Of Sioux Falls,
issued an injunction. which, in effect,
will permit the carriers to maintain.
temporarily, at least, schedule of
rates promulgated July 8 by the Inter
state Commerce commission.
These rates are much in excess of
those ordered in force by the State
Railway, commission in its now fa-
nous "Order No 49," the bone Of
contention in litigation which began
two years ago and-which promises to
continue some time.
Arguments on behalf OF both the
railways and State Railway commits
sion were submitted to the court yes
terday morning and after three hours
of delibefation yesterday afternoon,
the judgesA issued the injunction. The
point involved in the proceedings
dates back to the, issuance of Order
Mo- 49, which granted material reduce
tons in freight rates in this. state and
which later caused shippers Of Coun-
Gil Bluffs, Sioux City, Kansas City,
ST. Joseph and other east bank
towns" to institute before the Inter-
state Commerce commission an ac-
ton to have the rates held discrim-
inatory.
State is Restrained.
In deciding the case in favor of the
shippers the commission issued what
1t contended to be reasonable sched-
ule of tariffs to be charged by the rail-
ways. Subsequently the railway COM
panies filed suit to restrain the State
Railway commission from taking any
action to prevent the petitioners from
complying with the order Of the In
terstate Commerce commission, and
also to restrain the state commission
and state attorney general from
bringing any action against. the peti.t
| TONERS based Upon their failure to
comply with Order No. f9. This is the
action which was temporarily decided
yesterday. The case will come up
again at hearing to be held later to
determine whether or not the IN
junction shall be made permanent.
Provisions Are Made.
Certain provisions were made BY
the judges in the order. Among these
are that the rates promulgated by the
Interstate Commerce commission
from east bank cities" to points in
Nebraska be maintained until the case
Is permanently settled and that the
railways keep their books open so as
to show how much has been collected
in freight rates in excess Of those pro-
vided II Order No. l9, this fund to be
held in trust until the termination Of
the action, 1t is also provided that
the railways shall be liable to persons
! for any amount paid in excess of
those provided in Order No. 10 If the
injunction is held to have been inn
properly granted. In addition the
various companies are required to fur
nish bonds Of $50,000 each to insure
the payment of any damages any
shipper may suffer.
State Has Protests.
At first the Interstate Commerce
commission sct'September rs, 1916. as
the date on which the schedule OF
rates should go into effect, but Sub
sequently it ordered that the rates 60
into effect October rs. 1t was con-
tended by Attorney General Willis E.
Reed that since that time numerous
protests have been filed against the
proposed rates and that these pro-
tests cannot be passed upon prior to
October rs. He argued that until the
protests are passed upon the schedule
of rates filed by the petitioners is IN
operative and may not become the
tariff of rates allowed.
No date for final hearing on the
injunction was fixed, but it is ex-
pected that It will be at an early date.
At this hearing the merits OF the case
will be argued and it will be de-
terrnined whether or not the injunc-
tion shall be made permanent.