The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-04-22
SCOOPS OF THE SOUTHERN.
THE RAILROAD COMMISSION tn
MAKE AN INVESTIGATION.

II the Southern Proves 10 BE the
Real Owner of the Central of Geor-
gia and the Georgia Southern ana
Florida an Attempt VIII he Made
10 Enforce Rule COncernIna
Freight and Passenger Rates oven
One and the Same Line.
Atlanta. Ca. April 2l.-The mooted ques-
ton Of the ownership Of the Georgia South-
ern and Florida and the Central railroads
was up before the state railroad commis-
sion to-day, the case being one OF the most
interesting and important that that body
has had to deal with In a long time.
Ever since the reorganization Of tha
Georgia Southern and Florida and the
Central, there has been an impression thau
the Southern Railway Company was the
real owner Of both lives, although they
have been operated under their own sepa-
rate directories. and 10 all appearances.
so far as the public is concerned, as inde-
pendent lines
Repeated attempts have been made to
disclose the ownership Of the Georgla
Southern. but the list of stockholders has
been carefully kept from the public view-
In a recent report. however, Presidents
-
also president Of the Georgia Southern, re-
ferred TO that road in such terms as to
cause the railroad commission TO take hold
OF the matter for the purpose Of ascertain-
ing the real ownership. II the Georgia
Southern was owned and controlled by tho
southern, the commission desired to apply
rule to the two lines-likewise the Gem
tral.
Rule / provides: "Au connecting rail-
roads which are under the management or
control, by lease, ownership, or otherwise,
OF one and the same company shall, for
purposes Of transportation, in applying
tariff by the commission be considered as
constituting but one and the same road.
and the rates shall be computed as upon
parts OF one and the same road. unless
otherwise specified.
Since the reorganization. and, in fact,
always heretofore, the Georgia Southern
and the Central in their relations with the
Southern have not been subjected to the
operation OF this rule, but have been al
lowed TO do business as separate and dis
tnct lines Freight handled over them
has been at the regular rates allowed for
shipments made over different and inde-
pendent routes. IL the Southern was real-
ly in control OF the other lines mentioned,
the commission held that in the interest
OF the shippers, rule ! should be applied.
lowed. Hence the determination to have
the ownership OF the Georgia Southern and
OF the Central put upon record
The case was brought by the commits
sion serving notice upon the Georgia
Southern and the Central, and also the
Macon and Northern, TO show cause why
this ti,s.in rule should not be applied, the COM
upon the railroads TO show their inde-
pendent ownership and control. To this,
however, the attorneys for the Georgia
southern demurred, and as there was no
specific citation calling upon them to show
their list Of stockholders, the names of
the owners of that line are still the COM
The case OF the Central was not taken
up at all to-day, but was allowed to rest
until the decision in the case Of the Geor-
gia Southern, as the settlement OF one
will dispose of .the other.
While the attorneys did not disclose the
ownership Of the Georgia Southern, all
Of fact that they themselves were igno-
rant Of the names, in order TO secure a
construction of the rule the case was ar
gued upon the presumption that tho
Southern Is the actual owner OF a MAJ
Jority OF the stock in the Georgia South
ern,, Admitting this. the attorneys con-
tend that that line Is not controlled by
the Southern I'm the meaning OF the rule,
as 1t has a separate directory and man.
agement, the Southern having absolutely
nothing to do with the operation of II.
The fact that the Southern or its friends
owning the majority of stock should elect
their friends directors II was contended
did not bring the Georgia Southern
within the control Of that company, as
contemplated by the rule and the law.
The Georgia Southern was represented
W -SAABG Opiii man. ktHtIdA C0Qnttis
and by Dupont Guerry, ex-general coun-
sci, while General Counsel Henderson
OF Washington, ID. c., was present as the
representative of the Southern. Both the
Georgia Southern and the Southern,
through their attorneys, filed their an-
swers, making a sweeping denial of the
allegation that the Southern is in control
OF the Georgia Southern. The commission
will defer It's decision of the case until
the Georgia Southern produces its stock
books, showing the name Of It's stock
holders, so that there can be no question
as to the ownership. The attorneys have
agreed to submit these books TO the
commission. II they show the ownership
in the Southern railroad Company, the
question will then resolve itself into a
technical point of law as to whether the
two systems shall be declared one in
management. If this should be done, the
violation of the law against the control
of competing lines may be raised TO give
the Southern and its connections more
trouble.