Democratic Sentinel, Volume 12, Number 33, Rensselaer, Jasper County, 7 September 1888 — A RAILROAD VICTORY IN IOWA. [ARTICLE]

A RAILROAD VICTORY IN IOWA.

Judge Fairali Makes Perpetual tiie Order Restraining the Commissioners. [lowa City (Iowa) special.] Judge Fairali, s tting as Chancellor, has filed his opinion in the case of the lowa railways against the lowa Railway Commissioners, being the test case of the Chicago, Rock Island and Pacific Railway against the Commissioners to restrain them from putting into effect the schedule of rates prepared by the Commissioners in pursuance of the recent law of the lowa Legislature. The Judge gives an opinion of great length and sustains the injunction. He goes into the history of railway legislation and quote) from many authorities to sustain his position, hirst, he considers the question of the jurisdiction of;defendants and then whether the Stare is such accessory party as precludes assuming jurisdiction of the case. Th) point is decided that the court has jurisdiction under the rule which authorizes actions against officer) in their official capacity, whether to arrest or direct their official actions by injunction or ma idamus. Where such suits are authorized by law und the act to be done or omitted is purely ministerial, in the performance or omission of which the plaintiff has a legal interest, these may be maintained, even though the State be directly affected thereby. As to the jurisdiction of the court of the subject matter of the action, this is sustained on the ground that while the commissioners are authorized to exercise a discretion in fixing th) rates, yet when they fix such rates so low that the earnings are too low to enable the plaintiff to pay fixed charges and operating expenses, then their acts contravene the spirit of the statute, which requires ra es to be reasonable and just, and is in violation of the constitutional provisions whicn entitle the common carrier to a reward for his services. The court further holds that the title of authority of the Legislature is between rates which are compensatory and those which aro npt, and when not compensatory a court of equity has the authority to inquire into the matter. This is based on the right of such a court to control the action of public officers and to prevent them from acting in violation of law. The lowa Commissioners have appealed to the Supreme Court. John H. Derr and George Yocum, the Reading, Pa., stock brokers arrested for defrauding the Government by cashing forged money-orders, have been held for trial in $1,099 bail each.