Daily capital journal. (Salem, Oregon) 1903-1919, 1916-12-06
JUST LINES OF REASONING


The judicial mind and that of the layman apparently
travel along different routes and reach different concus
ions from given premises. This is Illustrated in the
mentioned yesterday in which the supreme court of the
United States held that the Interstate Commerce commits
sion could permit railroads to charge for short
than long haul under certain conditions 1t illus
trated again by supreme court yesterday in the
suit of the city of Woodburn against the Public Service
Commission of Oregon and the Western Telephone
Company 1t seems that time ago the United Tele-
phone Company granted franchise to operate in the
city of WOODBURY. and in consideration of this franchise
and privilege agreed with the city of Woodburn that it
would not charge above certain for its service
Later the Western Telephone Company became its sue
cessor and assumed all its rights privileges and obiga
ti0nS.
In July Of last year this company applied to the Public
Service commission for the privilege Of raising its rates
and after due consideration and notice and hearing OF
the matter the commission authorized the company to-
charge rates greater than had agreed with the city
charge The city then took the matter into court and on
the trial before Judge Galloway the contention of the city
that the company had right to violate its contract or
the commission to order to do sustained From
this decision the defendants appealed and the supreme
court in an opinion handed down by Justice Harris
versed the lower court and held that the commission had
the right to increase, and the company to collect the
greater charge.
We do not presume pass upon the correctness of the
decision for it is that of the highest legal tribunal of the
state and its decision is final but simply to call attention.
mind and that of the average citizen The judicial mind
reasons along the line that the people of the whole state
have greater authority than city, or portion CT the
people, and that having such power their acts giving the
Public Service commission authority to regulate rates
such as those in the Woodbun case made void any act
contract made by the city that in contraventon to-
this authority The learned justice in passing upon the
matter admits that the law giving the commission this
regulating power passed subsequently to the grant,
ing of the franchise by the city of WOODBURY. franchise
that was contract for the doing OF certain thing the
consideration being the privileges given the company.
Article one section 21 of the bill of rights in the state
constitution says among other things: NO eX post tacto
law or law mpairing the obligations of contracts shall
ever be passed"
To the average man it would that the passing of
the law giving the Public Service commission power to
set aside contract and to substitute another in its place.
as between the city of Woodbun and the Western lee
phone company not only law mpalng the obllga-
ton of contract but that it post facto law
Following this line of reasoning the conclusions
reached would be ametcay opposite those reached by
following the judicial line of argument Why is there
such difference and does mans line of thought change
when he puts on the judicial ermine? Here was con-
tract admitted by all the parties to 1t as having all the
necessary component parts of legal contract for there
were parties subject matter and consideration Ihere
was also the "aggregato meHtlo" and completed con-
tract This the Public Service commission set aside and
substituted new contract for the parties. This being
found to be the law by the supreme court must stand but
# behooves the municipalities of this state to think long
before making any contract with any public utility com
nanv or person contract of that kind has been decided
TO be not binding the company and while IL mas not
been decided it more than probable that should the
citv undertake to revoke franchise 1t would nd that so