Jasper County Democrat, Volume 11, Number 79, Rensselaer, Jasper County, 10 March 1909 — RAILWAYS WIN GREAI VICTORY [ARTICLE]

RAILWAYS WIN GREAI VICTORY

Court Rules Against the Cut In the Rates.

BLOW TO MISSOURI’S LAW

Judge McPherson Holds That the 2Cent Fare for Passengers and the Maximum Freight Rate Fixed by the Statutes Are Not Remunerative—Attorneys Believe the Railways Will Soon Go Back to 3 Cents a Mile for Passenger Fare.

Kansas City, March 9.—A notable decision in favor of tne railroads was handed down by Judge McPherson of the United States circuit court in the 2-cent fare arid maximum-freight-rat* cases, Involving eighteen Missouri lines. The railroads contended that the rates fixed by thg state were confiscatory, arid asked that the enforcement of the statutes be enjoined. “The question,” said Judge McPherson in his decision, “is whether the traffic wholly within the state of Missouri, generally referred to in the evidence as local traffic, can be carried under the freight rate statute of 1907 and the passenger fare statute of 1907 at such profit as to give a reasonable return after paying expenses upon the investment, or whether such traffic is carried at a loss or at less than such reasonable profit. The court has reached the conclusion that the rates fixed by both statutes are not remunerative.”

After the decision had been handed down several railway attorneys Intimated that the railroads soon would go back to the 3-cent passenger rate, but none was able to state specifically that this would be done. Frank Hagerman made the following statement: “The 2-cent rate Is the subject of pending litigation in Minnesota, South Dakota, Nebraska and Kansas. It is not conceivable that if the rate is confiscatory In Missouri It can be compensatory In any of those states. What, ir anything, will he done In other states has not been decided. In view of the thorough investigations and the decisions in the Pennsylvania and the Missouri cases It is doubtful whether any state will attempt any longer to enforce a 2-cent rate act.”