Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-09-17
RAILWAY NEWS AND GOSSIP

Readers of the State Herald are ac-
quainted with the rate war which has
existed for some time between the Sea-
board Air Line and Southern railroads.
The fight has been bitter one, and cost
both roads a great deal of money! The
Seaboard, through Vice President st.
John, has made certain statements
against the Southern, and Mr.. Samuel
Spencer, president of the Southern, has
replied to them in an open letter to the
chairman of the Georgia Railroad COM
mission.
His first refutation is the charge that
the Southern owns every share of the
capital stock of the Central of Georgia
railway" He says the Southern has a
contingent beneficial interest in either
that stock or its proceeds, but that the
stock, through court decisions, is held by
others The Southern, he says, has never
exercised any control over the stock, or
either directly or indirectly over the
operations of the property.
Mr.. st. John further charges that the
Southern "compels the Atlanta and West
Point and Western of Alabama to refuse
through car arrangements to the Sea-
board, which they accord to the South
ern." Mr.. Spencer says the Southern has
no power nor has ever attempted to COM
pei or influence these lines to do any such
thing.
Again, Mr. st. John says: "Of the
lilies ceIleTlIS at AlldHLa OILY lne sea-
board Air Line toward the east and the
Western and Atlantic toward the west
are free from the domination of this (the
Southern) corporal ton"
Mr.. Spencer replies to this as follows:
Even if the Southern controls, as it
does not, the Central, the Central does
not control, nor has 1t ever controlled,
the Georgia railroad. The Louisville and
Nashville Railroad company owns an I'M
divided half interest in the lease of that
property, and, in fun protection of that
interest, the Georgia is and has at all
times been operated as an Independent
line. The general manager of the
Georgia railroad or any one of its officers
or directors, WILL am sure, state to your
honorable commission that no attempt,
however slight. has ever been made by
the Southern Railway company or it's
representatives to control or in any way
to direct or influence the policy or man
agement of the Georgia railroad"
Mr.. ST. John says: THAT the Southern
Railway company controls three COM
petitive and parallel routes from Atlanta
to Macon, in this sate Georgia." To
this Mr. Spencer replies that the South
ern controls but one line between At
lanta and Macon.
Again, Mr.. st. John says chat there
is not competitive line at Macon which
1t (the Southern) does not control" Mr.
Spencer says there is not now and never
has been the slightest diminution of COM
petition by the Central with the Southern
railway in and out of Macon, either To-
cally or in the exchange of business with
any of the Central's western or eastern
connections.
Continuing, Mr.. Spencer quotes Mr. st.
John as writing: ut is a we'll known
fact that the financial powers which DOM
mate the Southern railway likewise con-
troll the Louisville and Nashville Rail-
road company His answer to this is
simply: THAT statement is wholly and
entirely untrue, and has not the slightest
foundation in fact"
THE Southern has absorbed by stock
ownership or otherwise the Macon and
Birmingham, the Georgia Southern and
Florida, the Georgia Midland and Gulf
and 1t is said controls the Columbus
Southern is another assertion of Mr.
st. John, to which, in substance, Mr.
Spencer replies: The Southern has law
fully leased the Georgia Midland, but
does not own a share of stock nor does
1t control the Macon and BIRMINGHAM.
1t owns an interest In the Georgia South
ern and Florida, but not a control. 1t
does not control the Columbus Southern.
which is in the hands of receiver The
Southern would have a perfect right, I'M
der the laws Of Georgia, to own all these
roads If it so desired.
Mr.. st. John again says: "a majority
Of the stock OF the Seaboard Air Line
and of the Bay line Is in hands where 1t
cannot be purchased by the Southern
railway" Mr.. Spencer's reply to this Is:
"The fact is that little less than six