The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-31
IMPORTANT RAILWAY SUIT.
GRAND TRUNK AT ISSUE OVER THE USE OF
THE INTERNATIONAL BRIDGE.

AHH NE" aohh CENTRAL AND THE CANADIAN
GRAND TRUNK AT ISSUE OVER THE USE OF
THE INTERNATIONAL BRIDGE.
lBY TELEGRAPH TO THE HERALD
SYRACUSE. N. Y. Dec. 80. 1879.
An important case in equity jurisprudence
argued to-day before Judge Wallace in the United
States District Court in this city which appears 60
have no precedent in the law books. The conten-
ton grows out Of controversy between the Canada
Southern Railway Company and the Grand Trunk
Railway Company over the International Bridge
across the Niagara River at Buffalo. The Canada
Southern Company applies to the District Court for
reduction of tolls. which the petitioners aver are
exorbitant and unfair. The case involves q large
amount and has engaged the attention of
distinguished counsel on both sides. The dis
putc between tho two parties, is of sew
eral years. duration. The difference between the
amount claimed and the amount which the
Canada Southern Railway consider 1t reasonable to
pay is between $4,000 and $s0.0OO every year. The
railway company pays the bridge company annu-
ally between S125000 and $4,000. their bust
ness is rapidly growing. The international bridge
was constructed number of years ago under
authority granted to two separate corporations
one Canadian and the other American. the
charters being given by the Dominion Par
lament and the Legislature of the State of
New York respectively. In 1869 the two corporations
were merged into one, and assumed the control of
the bridge. Neither the Canadian Parliament
the New York Legislature took the precaution to
stpuate the rate OF tolls be collected the use
of the bridge. although it was explicitly set forth
that all railroads desiring to run cars over it should
have equal rights with each other. The New York
Legislature further empowered the directors of the
American corporation to fix the amount of tolls 1t
is now claimed on the part Of the Canada Southern
Railway Company that every dollar except two
hundred dollars of the stock Of the International
Bridge Company, its franchises and rights. have
been absorbed by the Grand Trunk Railway the
right to make this purchase having been granted
by the Canadian Parliament without the
or consent OF the New York Legislature The
sideration was f20.000. The officers of the bridge
company are the officers of the Grand Trunk Rail-
way, and the two shares OF 500 each not owned by
the railway company held in trust for it.
The rate of tolls being collected is az
fol!ows:--For loaded freight cars, dollar; for
empty freight cars, fifty cents for passengers ten
cents. This the Canada Southern Railway claims
is an exorbitant rate. yielding tho Grand Trunk
Railway at the lowest estimate revenue of $4,000
more than the annual rental OF the bridge. Tho
Canada Southern Hallway. in view of these facts.
petitions the United States District Court for
remedy. The prayer is for a lower and more equit-
able rate of tolls The act of Congress provides
bridge company and the railway companies
using the bridge, that the settlement be effected in
posing the petition maintain that the act referred to
is unconstitutional and that the District Court or
any other court IL without authority in tho prem
Uses. A case involving many Of the same points
recently argued in the Canadian Court of Chancery
and now awaits decision.
The before Judge Wallace argued at con-
siderable length by A. p Lanning. of Buffalo; Adam
c. Volts. Q. G., of Toronto, and Nicholas Kngswel,
also of Toronto for the Canada southern Railway
and Z. G. Sprague and Mr.. Mlburn. OF Buffalo, for
the bridge company. Mr.. James Tillinghast, Gem
eral superintendent Of the New York Central aud
Hudson River Railroad Company and president Of
the Canada Southern Railway Company. was present
throughout the argument looking after the interests
OF his side Of the question. The controversy is vr-
tusny railroad war between the New York Central
and the Grand Trunk Railways. Judge Wallace will
decide whether he has Jurisdiction In the case before
there are further proceedings. The counsel will
submit their briefs next Tuesday. The question is
very serious to the railroads interested in the
controversy. In the event of Judge Wallace deciding
proceed under the act of Congress. testimony will
be taken before him looking to investigation OF
the allegations that the bridge company demand
ing exorbitant tolls.