Nebraska State Constitution Article X-7

Article X-7


Unjust discrimination and extortion.

The Legislature shall pass laws to correct abuses and prevent unjust discrimination and extortion in all charges of express, telegraph and railroad companies in this state and enforce such laws by adequate penalties to the extent, if necessary for that purpose, of forfeiture of their property and franchises.


  • Neb. Const. art. XI, sec. 7 (1875);
  • Transferred by Constitutional Convention, 1919-1920, art. X, sec. 7.


The Public Service Commission has exclusive power and jurisdiction to inquire into complaints concerning telephone rates and where service is woefully inadequate, may require rebates. Myers v. Blair Tel. Co., 194 Neb. 55, 230 N.W.2d 190 (1975).

Legislature delegated power hereunder to inquire into discriminatory rates to the railway commission. Allen v. Omaha Transit Co., Inc., 187 Neb. 156, 187 N.W.2d 760 (1971).

Not all discriminations are prohibited by this section. Statute permitting free transportation to ministers and charity workers is not violative of this section. State ex rel. Sorensen v. Chicago, B. & Q. R. R. Co., 112 Neb. 248, 199 N.W. 534 (1924).

Railway Commission Act follows the mandate of this section. State v. Union Pacific R. R. Co., 87 Neb. 29, 126 N.W. 859 (1910).

Telegraph companies were placed in the same class with railroad companies and other common carriers. Western Union Tel. Co. v. State, 86 Neb. 17, 124 N.W. 937 (1910).

Anti-pass law, applied to intrastate transportation, is constitutional. State v. Martyn, 82 Neb. 225, 117 N.W. 719 (1908).

It is not undue preference to give one patron a less rate where fairly justified by differences in conditions affecting expense or difficulty of rendering service. Western Union Tel. Co. v. Call Pub. Co., 44 Neb. 326, 62 N.W. 506 (1895), affirmed by 181 U.S. 92 (1901).