5382 HASTINGS—POLICE POWER OF THE STATE. [June 19, 
adoption of any rate for such road, and the rate fixed was to be 
deemed conclusive as between the company and shipper. Any 
company dissatisfied with it might file a petition in any court of 
competent jurisdiction in Travis county, Tex., to have the rate or 
regulation set aside, and the commissioners and state attorney- 
general were to answer and the case be tried at once. 
The commission established certain rates of tariff for transporta- 
tion, and in April following the Farmers’ Loan and Trust Com- 
pany commenced action in the federal Circuit Court in Travis 
county, Tex., to set them aside and enjoin the commissioners from 
attempting to enforce them or any others. 
It was in possession of the International & Great Northern Rail- 
road by a receiver appointed in an action to enforce $15,000,000 
of bonds of the company. It alleged that under the rates estab- 
lished the income of the road would be reduced below the amount 
necessary to pay interest on its indebtedness, which was three-fifths 
its cost, and the rates were unjust and unreasonable and the law 
unconstitutional. 
The commissioners first answered and took some evidence, then 
withdrew their answers and demurred to the petition. ‘The court 
found against them on the demurrer and perpetually enjoined 
them from proceeding in any manner under the law. They 
appealed to the federal Supreme Court, claiming: First, that the 
action would not lie because brought against the state; second, 
that their rates were conclusive, and, third, that such rates were 
reasonable and just, at least so far as the facts alleged indicated. 
The first objection was promptly disposed of on Chief Justice 
Marshall’s authority in Osborne vs, Bank,* and all the cases follow- 
ing it since, holding that where private rights are wrongfully in- 
vaded a claim to be acting by state authority on the part of the 
defendant does not prevent jurisdiction of the federal courts. 
The Granger cases? are held to establish the right of the state 
by its legislature to fix transportation rates that shall be Arima facie 
reasonable ; the Railroad Commission cases and others since, especi- 
ally Chicago G. T. Ry. Co. vs. Wellman,* to determine that such 
rates must be set aside if shown to be unreasonable. 
Judge Brewer in the opinion finds that the rates fixed were 
objected to as a whole; that the court cannot fix rates, but only 
19 Wheat., 738. ; i 294 U. S., 155. 
143 U S.5 339 
