Evening star., 1896-08-15
The Seaboard and Southern May Be-
come One System.
RUMOR THAT ONE WILL BUY rHE OTHER
Effect Of Judge WeIborn's Decision
on Land Grant Roads.
L r o n K LINE RATES

As heretofore stated in The Star, the
case of the Seaboard Air Line against the
Southern States Freight Association, or as
1t is more generally known, the Southern
Railway Company. on proceedings as to
whether or not the injunction now in
force against these companies to prevent
rate cutting shall be dissolved comes up
before Judge Simonton at Greenyille. s.
c.. today.
AS will be remembered, the Seaboard
lnaugurated the war. for which there is at
present truce. by cutting rates to the
extent of 33 1-S per cent to all competitive
points between its own lines and those of
the Southern, and the latter retaliated by
announcing cut Of 50 per cent In the then
existing tariff rates, to take effect Au-
gust 1.
Just previous to that date, however, the
Port Royal and Augusta road which is
said to be controlled by the Southern.
through its representatives. went before
Judge Simonton and asked for an injunc-
tion to stop the rate cutting by both sides,
and the court compiled with the request
and fixed today as the date for him to
decide whether or not the court should
dissolve the temporary injunction or make
1t permanent.
There have been frequent conferences
during the present week in New York and
elsewhere between the leading officials
OF the roads comprising the Southern
States Freight Association, in order IL is
said. to devise a plan by which harmony
could be restored but, SO far is known,
no scheme was hit upon by which this
wished-for result would be accomplished.
The Seaboard was it is understood in
vited to have representative at the meet
ing in New York, but the Invitation was
either ignored or Overlooked for no official
of that line put in an appearance.
The seaboard Full Of Fight.
The ammo unced intention Of the Seaboard
Air Line. stated last evening to a Star
reporter in Baltimore by an official OF that
road. is to fight the injunction and con-
tinue the rate war. The contention OF the
Seaboard is. 1t was said. that If Judge ST.
monitor can say what the railway COM
panies may or may not charge for the
transportation of passengers and freight,
he has the same legal right to fix the prices
Of groceries or Of dry goods to be consum-
ed by the people living In the territory over
which he presides
1t is also reported that the interstate
commerce commission is taking quiet but
at the same time very deep interest in the
matter, as 1t has heretofore been believed
and generally understood by the railroad
men and shippers Of the country that it
was the commission only which, under
Congress. could exercise a supervisory con-
troll of rate matters on the transportation
lines; and If the position taken by Judge
Simonton is sound, it is argued, their use
fulnesS is at end
President Spencer of the Southern Rail
way Company returned from Europe a few
days ago. and he Is now at Greenvile look
Ing alter the interests Of his company In
today'S court proceedings. Ever since he
has been at home he has been kept very
busy discussing the Southern rate situation
with shippers and others and planning q
remedy for the present troubles.
There Is rumor that some of the stock
holders of the Seaboard Air Line are very
much disturbed by the very aggressive at
titude of Vice President ST. John, and some
of them want a meeting of the stockhold-
ers to be called to stop the rate cutting.
Rumored Consolidation.
The plan is stated to be to offer the prop
erty TO the Southern Company, If the latter
is willing to pay a fair price for it. The
general supposition among southern people
is that the Southern Railway Company
wants to control all the weaker lines in the
south, and some people there think the
Southern Company wants to get control
especially Of the Seaboard line. They are
therefore urging the Southern Company a
little to hasten the purchase by creating
greater necessity, as they suppose, for such
action.
President Spencer of the Southern Rail-
way Company has, 1t is said, frequently
stated that the Southern does not want the
Seaboard, and he IS quoted as having said
during the last few days that 1t can as well
be understood that no system will be
quired by the Southern railway unless ii is
going to be for the especial benefit of the
Southern railway.
Judge WelbOrn's Decision.
Every railroad company in the United
States will, IT is said. be affected to a greater
or less extent by the decision of Judge Wei
born of the United States circuit court of
California. which was handed Gown during
~.
gress has the right to fix the rates TO be
charged on land grant roads for passengers.
and probably for freight. The case before
Judge Welborn involved questions that were
entirely new and original regar ling the right
of Congress to regulate the rates to be
charged by railroads in the conduct of in
terstate commerce. The issues settled by
the decision were not only those arising be-
tween the United States government and
land grant railroads as to the rate OF COM
pensation that the roads shoul1 receive
from the government for transportation of
troops. mail and other effects, but involved
the right of Congress TO fix the comnensa-
ton for all charges by the railroads for in
terState commerce.
For several years past Congress has at
intervals passed acts providing that for the
transportation Of troops and freight of
various kinds for the government !he land
grant railroads should receive not more
than half the compensation paid by regular
shippers or travellers, the exact amount to
be nXeU Dy lne SecTStiIy OIL W
The Question Involved.
The railroads contended that they had
the right to charge the government the
same as any other customer, and, desiring
to have the matter settled for all time,
brought a test case under the Court Of
Claims act, the Atlantic and Pacific road
being the plaintiff, to recover full fare for
the transportation of trooper, one Phillip
Barrett, from Albuquerque. n. NJ, to Pres
colt Junction, AriZ., distance of 42S miles.
The regular fare is s25I0. The govern
ment offered 1923. The railroad company
refused to accept this, and brought suit to
recover the full amount The decision was
against the railroad
The Importance of the decision may be
more accurately estimated when 1t is
stated that the Atlantic and Pacific alone
would receive s7J0.OO0 a year more for the
transportation Of troops, and that when
the charge for carrying the mails is added
the difference or this one road In favor of
the government reaches 81, 5000 annually
AS the land grant roads include at least
one-half the mileage of the country the
amount involved is perhaps si0,OO000O to
$50,O00.OO0 a year.
Trunk Line DiferentiaIs
1t is stated that the request of the Penn
Sy1yanfa Railroad Companv hefora tho