The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-09-01
Judge Simonton Sets Aside the
Restraining Order.
THE RAILROAD RATE WAR,
Injunction Dissolved on Ground,
ofno Jurisdiction.
ALL PARTIES WERE NOT PRESENT
The Seaboard Will Not Meet the Gut
of Southern But it viii Continue
It's SO l-3 Per Cent
Reduction.

Charleston, S. c., August 31,--Judge
SimontOn, of the United States Circuit
court, to-day filed his decision in the
suit for injunction brought by the
Port Royal and Augusta Railway
against the Southern States Freight
Association to prevent the latter from
inaugurating the eighty per cent cut
in rates declared by it in retaliation
for thirty-three per cent reduction
previously made by the Seahoard Air
Line. The temporary restraining or
der is set aside and the bill dismissed.
After citing the allegations, of the bill
the court says:
,'The question presented by these
allegations did not seek at the hands
of the court the regulation of rates,
but asked it's interference to prevent
decentralization, and especially they
have argued that the purpose was, and
the inevitable result of war of rates
would be, the bankruptcy Of one or the
other of the competitors and so the
end of competition"
Ownership in railroads differs from
that in every other species of property.
A railroad is, as it were, public proper
ty and, as its first duty is to the public,
the owners can refuse no one and the
charges must be always uniform. In
no case can they go beyond what is
just and reasonable, and in the last
resort, the State or Federal courts de-
termine what charges are reasonable" !" :
In regard to the question of jurisdic-
tion the court says;
''Are the necessary papers before
this court in this case? Records of the
Georgia, Carolina and Western Railroad
Company develops the fact that the
Seaboard Airline is only the designa-
tion of a route or line operated and con-
trolled by two corporations, the Raj
eigh and CASTOR Railroad Company
and the Seaboard and Roanoke Rail-
road Company, one corporation of the
State of North Carolina and the other
the State of Virginia"
The SimontOn decision dissolves the
injunction and dismisses the bill on the
grounds of no jurisdiction, as all par
ties necessary to the case were not
present in court. The decision says
that as the Raleigh and CASTOR and
.Seaboard and Roanoke had leased pro-
perty of the Geogia, Carolina and
Northern and operate lines independ-
ent of the control of the lessee, they
must be present in court, as they are
the parties at fault and action without
their presence would be an unwarrant-
ed interference of the court with the
terms of the lease. The vital point of
the decision is as follows:
IF this case were to proceed and
it,. should be held that injunction
4
Northern Company would be restrain-
ed from carrying goods at the rate fixed
by the Seaboard and Roanoke and Rail
eigh and CASTOR, its lessees. The order
of injunction will abrogate this part
of the contract and to this extent
would deprive the lessees of the prop
erty in lease. Could the court abro-
gate the case on grounds like these
without hearing the lessees as parties
in the case, could the court investigate
the conduct of these two lessee cor
porations and convict them of charges
in their absence? Are not the inter-
ests of the Georgia, Carolina and
Northern and the two lessee roads in
separable. If so their absence inter-
poses an obstacle in the way of the de-
cree that is insuparable."
Concluding the court says the temp
bdLiOH 10 ehISE upon LIl6 uIScuSSlOl Oh
the interesting points involved is very
great, but there seems to be no escape
from the conclusion reached.
THE SEABOARD CUT REMAINS.
Norfolk, Va, August 31.-The Sea-
board Airline officials state that it is
not probable that the Seaboard will
meet the cut of the Southern Railway
since Judge Simonton dismissed the
injunction bill. They state that the
80 1-3 per cent reduction will continue.
A TRAGEDY AT TARBORO.