The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-08-19
The Arguments Concluded Be-
fore Judge SimonUon.
YBCOUNSEL ON BOTH SIDES
The Papers in the Case Taken
Under Consideration
AND THE osCIs ON is RESERVED
The Proceedings Stripped of EVerYth-
ing But the Fight Between the
Sou hern Railway and the
Seaboard.

Greenyille, S. c., Aug. 18.--Mr.
Smythe resumed his argument this
morning in the injunction case before
Judge Simonton and occupied the
tinse Of the court till half past four
o'clock this afternoon. He continued
the argument that the court had juris-
diction of all parties necessary to the
suit. The component parts of the Sea-
board Airline had answered, Mr..
Scott had answered and also Mr..
Haines, of the Southern States Freight
Association. He cared nothing for
the Ocean Steamship Company. The
President of the Central Railway had
been served within this jurisdiction
but was not an indispensable party to
the case. The bill sets out the fact
that the road bringing the suit is in the
hands of the court. The issue sets up
a violation of the Federal Constitution
in violation of the Interstate Com
merce act and then it is charged that
there was a combination of conspiracy
and also the cutting of rates, public
nuisance, because of its interference
with the public business and the mails.
The complainant was entitled to come
into this court of equity and preserve
themselves and prevent the forfeit
ure of their charter. All roads are en-
titled to reasonable rates, reasonable
| to the roads, and to the public.
II the complainant showed an un-
reasonableness in the rates fixed by
sweeping reductions of defendants,
then he was entitled to ask relief. This
| is a common law right. He referred
| to authorities furnished by Mr.. King,
attorney of the Seaiboard Airline, and
drew conclusions from them favorable
| to his complaint. He then discussed
| the different relations of railroads and
steamships. The latter are not en-
braced within the terms of duties and
powers of the Interstate Commerce
commissioner and the public does not
contribute to their establishment
They are not fixed and permanent in
their nature as are railroads and the
same rules will not apply TO both.
| Courts take the position that officers
| of road are looked upon as legal
| agents and when it is found that the
| @. c. and y. is operated by the Sea-
| board, then it is clear that the officers
| OF the lessee are agents of the lessor
| road. He cited numerous authorities to
show that this position was sustained
| by common and statute law. He read
an extract from decision by Lord
| Eden which said that it was better
| TO go as far toward justice as possible
| rather than deny it altogether because
| of the newness of the remedy. He
| then discussed the matter of the suit
| by an individual instead of the Attor-
ney General
He argued that this was not a new,
| remedy but possibly a new application.
State and Federal courts have for
| years held to the maxim that an in
| junction would lie to prevent an ire
deemable wrong and that was the sit
| uation here. One railroad seeking to
| put in force rate which would GER
tainly result in bankruptcy for itself
or its competitor. If it was claimed
| that the public would not suffer he
called attention of the court to the
| fact that many roads We're unable to
keep in running condition by the sale
of receivers certificates and if these
could not be sold then would the pub
lie feel the annoyance. "'Your Honor,
he said, knows that you would not al
low railroad to be torn up. 1t gets
its franchise and rights in considera-
tion of it's continuing in operation and
you cannot allow railroad to operate
at such tariff of rates as would final
ly disrupt itself or other roads,
The petitioner asked that his road be
protected from wrong sought to be in
ficted upon it. He read authorities to
show that the courts are practically
trustees for roads under receivership.
This court is strong enough to restrain
the railroad commission and strong
enough to restrain the railroad itself.
If the commission had established
these rates, then the court would GER
tainly have no hesitancy in enjoining
the commissioner; and why not go di-
rect to the source in this emergency
and enioin the railroad :? The legisla-
ture cannot establish ruinous rates,
the commission cannot interfere. The
court, he said, is not traffic manager
to fix rates, but it is within the pro-
vince of the courts, and the commission
alone to pass upon the unreasonable
ness of rates. He took up the report
of the railroad commissioner and
showed that in 1894 and 1895 there was
a deficit in the income of the Seaboard
and yet that company claimed that it
was able to make q cut This was un-
true. He referred to Senator Tillmans
reference to government by injunc-
tion,' and cited the case of the courts
of South Carolina being called upon
not long ago to restrain the Central
railroad of Georgia from its proposed
operation of the Port Royal road, the
State asking for injunction on the
ground that such action would crush
competition. Nearly sixty years ago,
Henry M.Cowan, of this city, wrote the
principle that was laid down in South