Savannah morning news. [volume] (Savannah) 1868-1887, 1882-05-30
THE RAILROAD CASE.
The IBiunctIOn of Col. w. WadleY
Against the Railroad Commission
The Argument in Brief.

sion OF georgia was commenced az macon.
The court met at 9:3O o'clock in the room
Of Judge Simmons in the court house in
Macon. Judge, Lawson, Of Eatonton, be-
fore opening the case stated that he was the
Treasurer of the Eatonton Railroad. which
railroad was leased to the Central Railroad
and Banking Company. That all the duties
required Of him we're simply to receive the
rental of the road-fourteen thousand
dollars per annum--from the Central Railroad
aud distribute It to the stockholders of the
Estonton Railroad, but that he received com
pensation therefor. He had really until the
preceding day thought very little about the
case, but in coming from EstontOn he had
concluded that possibly there might be
some doubt about his qualifications to pre-
side, on account of the fact that he was
connected with the Eatonton Road. Ii he
had thought OF the matter in time be would
have sent the railroad authorities to an
other Judge. While all of the attorneys
stated their entire confidence in Judge
lawson, and their willingness to have him
sit under such circumstances in a case
that they were representing, 1t transpired
that as the State was a party the
Attorney General felt that he had no right
to waive any objections which might be
raised to the proceeding. Judge Lawson
then stated that he could not preside, but
felt that he had no right to abrogate the
order of injunction already issued, as that
would be unfair to the railroads and through
no fault of theirs, but would turn the case
over to any Judge whom the counsel might
desire. General Lswton and Colonel Cum
mings, attorneys for the railroad and for Mr..
Wadley, after some consultation, decided
to request Judge Simmons, who was then
holding court in the same building, to hear
the motion. Judge Simmons, upon adjourn
IT, aoA - 115 Id
Lawson would sit in his stead the next day.
At twelve O'Clock the bill OF complaint
filed by the GeOreia Railroad and Banking
Company and William NJ. Wadley, lessee
therefor, against James NJ. Smith, Campbell
Wallace and L. n. Trammel, Railroad Com
missioners of the State of Georgia, and
Clifford Anderson, Attorney General, came
up. 1t charged that the act OF 1879 creating
the Commission was unconstitutional, and
also claimed that the Georgia Railroad and
Banking Company, under a charter granted
In 1888, was entitled to charge so cents per
hundred pounds for every fifty miles for
freight, and 5 cents per mile for passengers.
and that the Railroad Commissioners had
no right to prescribe rates. They also claimed
that the bill should be heard In a court Of
equity. They claimed that they had the right
under their charter to lease the privilege
of hauling freights and passengers to any
person or corporation, and that the Com
missioners had no right to make any rates
over their road, or to attempt to enforce
them. The counsel for the Commission
then read the answer of the Commissioners,
In which they denied that the Georgia Rail
road had any right to lease out the right to
collect tolls on freights, as the language Of
their charter specially stated that the only
privilege which they had a right to farm
out was that of collecting tolls from passen-
gers. The Commissioners also denied that
they had ever threatened to put into effect
on the Georgia Road, or that they bad ever
put into effect, any such rates. That they
had never made any specific tariff for the
Georgia Railroad, but had made one for all
the roads in the State of Georgia, and upon
that standard tariff had based the charges
necessary to make different tariffs for DIFF
ferent railroads. That the Georgia Rail-
road had never been threatened by
them, and consequently had no right
In a court of equity, and that,
furthermore, under the Code OF
Georgia, Judge could net grant any bill Of
restraint against the Commissioners, as they
were not a court, but merely acting agents
of the Legislature in carrying out the laws;
and, on these last grounds, the Commission
ers demurred to the bill of the complain
ants. AS the railroad had complained that
the rates given by the Commissioners in
circulars Nos. 20 and 81 were unreasonable
and upi Just, the Commissioners stated seve-
raj circumstances to prove the justice Of
their rates. Among others they showed
that the Georgia Railroad Company carried
barrel of flour from Atlanta to Augusta
for three cents a barrel, when 1t was carried
from Cincinnati to Charleston, but that the
Georgia Railroad charged an Atlanta miller
forty-two cents barrel for hauling the same
freight; and that, even by circular No 20,
the road now receives twenty eight cents a
barrel from an Atlanta miller for hauling
the same freight. They show that under
the rates of circular No. 20 the unjust dis
ordinations heretofore praeticed against
Georgia millers, corn growers and deal
ers, was to a considerable extent
abated, and, at the same time, the
railroad company was permitted to charge a
very much higher rate than they are now
receiving of their own volition out of the
rates made by the Southern Railway and
Steamship Association and Green Line, of
which the Georgia Railroad was party.
They further showed that the Georgia Raj
road and Banking Company was now declsr
ing dividend of II per cent. per annum on
its stock, that they had never before declar-
ed more than per cent, and ordinarily no.
over z, and that even at the diminished rate
under circular No. 20 the differences to the
Georgia Railroad in -four hauled would be
only SOS, 600, and that this would only make
q VI Out-udll Vi OuC per C6ub. III
the dividends, and that accordingly under
the operations of circular 20 the Georgia
Railroad could declare 1917 per cent. divi-
dends per annum. They also file a cross
bill in their answer demanding that Mr..
VIM. NJ. WadleY and G. II. PhinizY, the
President of the Georgia Railroad Com
pany, show that Wadley was the actual
lessee of the road, and that he was not
merely, as they believed, the representa-
ffr-a Of bo Capfra1 Railroad Cnpo nd
OF the Louisville and Nashville Company.
The object of the cross bill was to ind out
positively who did lease the Georgia Rail-
road. II the Central Railroad Company had
leased It. and Mr.. WadleY was merely their
representative, then they held that the lease
was in defiance of the Constitution of the
State, which expressly prohibits any rail-
road company from leasing another railroad
by which competition is lessened. Colonel
Cummings and General Lawton, attorneys for
the road, declined to answer the cross bill,
and flled demurrer TO the answer of the
Commissioners. Upon this the case was to
be called. Judge Simmons adjourned until
three o'clock. The original restraining or
der was granted by Judge Lawson and the
provisions OF the circulars have not been en-
forced on the Georgia Railroad yet. The
Commissioners 1iled cross-bill In their an
swer and demurred to the original bill be-
cause there was no case against them. To
this cross bill and demurrer the railroad
company demuned.
The argument was opened at three o'clock
by Colonel j. B. Cummings, of Augusta
who occupied about two hours. Colonel P.
L. MVnatt, OF Atlanta, counsel for the Com
missioners, replied in an argument Of the
same length. The court adjourned at 7:30
D. m, to meet yesterday morning, when ex-
Governor Smith, Chairman of the Railroad
Commission, and Hon. Clifford Anderson,
Attorney General, were expected to appear
for the Commissioners, and General A. r.
Lawton was to speak for the railroad. The
decision will be made In the case IN few
days.
THE GEORGIA RAILROAD CHARTER.
The charter of the Georgia Railroad and
Banking Company was originally granted
for thirty-siY years and expired in 1882
but It has been continued on sufferance by
fear that the charter will be forfeited, as
there is no such effort being made by the
Commissioners or the Attorney General.
The question really is whether the Georgia
Railroad is under the control of the Logisla-
ture in accordance with the act of 1863 and
the provisions of the constitution OF 1877, or
whether 1t has the right In perpetuity to
charge the rates granted it fifty years ago
II It comes under the law Of 1868 and the
constitution of 1877, the Commission can fix
the rates. This is the main point and there
is no uneasiness felt by the railroad authori-
ties or any one else as to any forfeiture Of
the charter.
WHO THE CASE IS TRIED BY.
Judge Simmons is a man of marked