The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-12
The Cut Rate Injunction.

VIII the quarrel of the Seaboard Air
Line and the Southern railway be ad-
justed finally in the courts or will they be
permitted to carry on their cut rate war
until one or the other yields? 1t is well
understood, of course, that the Seaboard
Air Line is the aggressor. 1t began the
rate cutting in order to force the Southern
to take off its line Of boats on the Chesa-
peake bay, between Norfolk and Balti-
more. The Southern put on this line of
boats mainly for the purpose of handling
its own traffic, when it moved its terminal
from West Point to Norfolk.
The unfortunate part of the traffic war
between the Southern and Seaboard is
that it involves nearly all the railroad and
steamship lines in the south to greater
or less exent. 1t was upon this fact prob
ably that the Seaboard relied when it be-
gan cutting rates, hoping doubtless that
the railroad and steamship lines, outside
of the Southern, that would be hurt by
the rate war would bring such a pressure
TO bear upon the Southern that the latter
would have to yield to the Seaboard's de-
mand.
The rate cutting was stopped some weeks
ago by an injunction granted by Judge ST.
monitor of South Carolina, on the appli-
cation of the Port Royal and Augusta
road based on the ground that the Port
Royal and Augusta, a property in the
control of the court was being ruined
| by the cutting of rates. and also for the
4 -.
rates in the interest of legitimate compe-
tition, but to compel compliance with GER
tain demands which it had made. Judge
Simonton decided, after hearing argument,
that he had no jurisdiction of the case
in the shape it was presented to him. The
rate war Immediately after that decision
was begun again by the seaboard.
The wholesale merchants of Augusta,
seeing that the city was not competitive
point, and that therefore their business
would be practically ruined by the rate
cutting, as they would not get the bene-
nit of the cut rates, applied to Judge Speer
for an injunction stopping the cutting OF
rates, and requiring the old rates to be
restored. The basis of their application
was that the interstate law was being vi.
olated, inasmuch as there was great dis
elimination against their city.
A temporary injunction was granted and
the hearing of the question as to whether
or not the injunction shall be made per.
manent will be waited for with great in.
terest throughout a wide section of coun.
try. Judge Speer has a comparatively
new question to settle-a question of deer
interest TO the whole country. AS a rule
shippers do not approve rate wars be.
cause It DISCREPANCIES business and brings
them no profit. In fact, they are losers
by them because the wars generally cease
as abruptly as they are begun, and it Is
not always an easy matter to re-establish
business on old lines. What shippers want
and what the people want. are fair and
stable rates. The interstate and state
commissions can make the rates fair fol
the people and the railroads. and 1t re-
mains 10 be seen whether the courts car
make the rates stable. II Judge Speei
finds the courts can do this he will set q
precedent that will be followed through.
out the country in preventing traffic rate
wars.