Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1896-04-03
THE I. G. GETS IT.
THE SUPREME COURT DECIDES
| AGAINST THE |. &N.
The c. o. g. S. w. Railroad Case at Last
Settled-The Kentucky Courts Sustained
on ali Points.

Supreme Court of the United States
to-day, Justice Brown handed down
an opinion affirming the judgment
CT the Kentucky Court of Appeals in
the case of the Louisville and Nash
vile Railroad Company, plaintiff-in-
error, VS.. the Commonwealth of Ken
lucky ct. al. The decision afirms
also the original finding of the JEFF
ferson Circuit Court, the effect of
which was t. enjoin the Louisville
and Nashville Railroad Company
from acquiring the control or opera
ting the parallel lines of railroad, the
Chesapeake, Ohio and Southwestern;
the short route railway transfer, a
belt line in Louisville, and the Union
Depot in Paducah, connected there
with, and to enjoin the Chesapeake,
Ohio and Southwestern system from
selling out or permitting its roads
from being operated by the Louis
vile and Nashville Company.
The opinion of the court concludes
with the following summing up,
which settles most important point
in the construction of the Constitu-
ton of Kentucky:
"First-That the general right to
purchase or to consolidate with other
roads was never conferred on the L.
& N. road"
Second-That the Chesapeake
Company was never vested with the
power to consolidate it's capital stock,
franchise or property with that of any
other road owning parallel or COM
peting line"
"Third-That, conceding that the
requisite power existed in both the
companies, Section 204 of the Consti-
tuition of 1891 was legitimate exer-
else of the police power of the State
and forbade such consolidation"
Following this decision the Illinois
Central will become the owner of the
c., o. and S. W. 1t already owns a
majority of the securities, and will
buy in the railroad when sold on ap-
plication of the receivers"
The Chesapeake, Ohio and South
westerly railway extends from Louis
vile by way of Paducah to Memphis,
Tenn, 1872 miles and from Elizbeth-
town, KY, to Cecilia junction, nine
miles, and to Aspbolt, KY, three
miles, making 400 miles in all, with
ninety-one miles of siding. The line
from Louisville to Cecilia the juno
ton, fifty-five miles, is owned by the
Louisville and Nashville, having been
sold to the company in 1877, but can
be purchased at any time for $1,000
600. The annual rental for the use
of the tracks is $4,000 with the pro-
vision that the road may be purchas-
ed at any time at the above figure.
The line is an important one TO Louis
vile and while it would still be good
property in the hands of
the Louisville and Nashville one
OF the best managed roads in the
South and West, it is of more advan-
tage to Louisville to have another
comp elm : line 10 Louisville.
The Illinois Central is one of the
biggest trunk lines in the United
States, owning and controlling 1883
miles of road. Its main line extends
from Chicago to Giro, ILL.,, then to
New Orleans From Memphis to
New Orleans, it has its own line, and
with the Chesapeake, Ohio and
Southwestern road it will have a con-
tinuous Iine between Louisville and
New Orleans.
Extending northward from Chica-
go, the Illinois Central reaches to
Sioux Falls, Oak, and to Sioux City,
la. 1t also has line to St. Louis.
The dicision brings to an end liti-
cation which has extended over more
than two years.
The litigation arose from the pur-
chase of the Chesapeake, Ohio and
Southwestern railroad by the Louis
vile and Nashville road. This
was accomplished in the following
manner.
In November, 1893, Mr.. G. P. Hunt.
ington and the Newport News and
Mississippi Valley Company sold and
transferred to the Illinois Central
Railroad Company controlling in
terest in the securities of the Chesa
peake, Ohio and Southwestern rail-
road, the Short-route Railway Trans
fer Company, the Paducah Union
Depot Company and the Greensboro,
Falls of Rough and Green River
Railroad Company. About the same
time, in fact, by contract dated the
day following the transfer, the Illinois
Central transferred all the securitiesto
the Louisville and Nashville railroad.
By the arrangements the Illinois
Central railroad was to obtain joint
use with the Louisville and Nashville
of the route between Fulton and
Memphis. The Illinois Central Rail-
road issued it's per cent. bonds to
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