Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-12-24
RAILROADS IN COURT.
Threatened Legal Battle Between the
SeabOard and the Southern.


The purchase of controlling interest in
the Atlanta and West Point railroad,
which, as mentioned in The Star of Sat
urday last. has been made. 1t is reported.
by the Louisville and Nashville Railroad
Company. the result of which. also al
ready stated. may be to compel the South
ern Railway Company to build line of
it's own from Atlanta to New Orleans. has
been followed by court proceedings which
threaten long legal battle between the
Seaboard and the Southern railway COM
panes-
Judge Lumpkin of the United States
court in Georgia has issued an order d.
recting the present management of the
Atlanta and West Point road to take no
further steps for the present looking 10 a
transfer of the property to the Louisville
and Nashville Company and to appear be-
fore him Thursday of next week and show
cause why a receiver of the road should
not be appointed.
The application for a receiver was made
on behalf of Mr.. L. b. Nelson. who holds
but 81 GOO of the stock of the Atlanta and
West Point, by the same lawyers who are
counsel for the Seaboard In Atlanta, ana
this fact has served to emphasize the be
lief on the part of many railroad men tnat
the Seaboard is back of the scheme
1t Is alleged by those who have asked Tor
the receivership that the charter OF the
Atlanta and West Point expired by nm
itation the Goth instant, and that although
the Georgia legislature at it's recent ses-
sion passed an act extending the charter
for fifty years it had no right to do SO, an
that consequently the law Is unconstltu-
tional and void.
1t is stated that the petition for the APP
pointment of a receiver is SO framed as to
bring into court for adjudication the whole
question of railroad combination, alleging
that majority of the stock of the Atlanta
and West Point railroad lis held by the
Central of Georgia Railway Company. and
the Georgia Railroad and. Banking. Com
pany; further, that these two corporations
are themselves owned or controlled by the
Southern Railway Company. through Its
interests in the Central lease of the Georgia
road: also that large portion of the stock
of the Atlanta and West Point railroad Is
owned by the Louisville and Nashville
Railway Company, and alleges that the
Central is a competing line to the Atlanta
and West Point for portion of its length.
and that the acquisition and control OF the
Atlanta and West Point road by COM
pany has the effect of defeating or lessen
ing competition and is in violation of the
constitution of Georgia.
1t is generally believed among those who
have given the subject careful thought that
this suit is the beginning of the long-threat-
cred legal battle between the Seaboard AIR
Line and the Southern Railway Company.
1t will be remembered that in the series
of letters which Vice President ST. John
wrote last summer to the chairman of the
Georgia railroad commission he stated
that the Southern Railway Company was
a combination of competing railroads in
defiance of inhibition placed upon such com
binationS by the constitution of Georgia. AT
the time he cited decisions of state and
federal courts to sustain his position.
Those letters showed so much legal
knowledge that they were generally be-
lieyed to have been composed largely by
the legal advisers of the road, and were
directed to the chairman of the railroad
commission in order to reach the legisa-
t, re and move it to legislation against COM
binations. gzt-- -..
1t was subsequently found that the pres
ent legislature of Georgia is not likely to
take radical measures either for or against
railroads ard so the battle has been trans
ferred to the courts. The character of the
petition in the pending suit and the care
with which the question of railroad COM
bination is brought into an action of this
kind points clearly, it is believed. to the
fact that the legal status of the Southern
Railway Company is to be tested in the
courts. ar d that the case will be pushed
with all the vigor at MI. st. Johns COM
mand