The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-02-22
The KATY FILED AN ANSWER,

n The KATY FILED AN ANSWER
Galveston, Texas, February 2i.--The Mis-
: souri,, Kansas and Texas of Texas toda,
, filed its answer in the Federal court TO thu
application OF the Lone Star Steamship
Y company for permanent injunction
against the Texas rail liaes restraint.
them from putting into erect their notic,
OF denanuing prepayment OF charges OF
all freight received nom or delivered 10 the
Lone star line. The particulars oil this APP
pication and the issuing Oh Temporal
restraining order by Judge Bryant have
already been told in The Post.
The answer OF the Katy was prepared BY
James Hagerman, general solicitor of the
| road, assisted by 4. S. Miller general at
torney, and Attorneys Mott and Armstrong.
| 1t Is sworn to by John w. Alien, general
| freight agent. In their answer the Katy
| people do not admit the incorporation oil the
| Miami Steamship company, commonly
known IS the Lone Star line, and demands
strict proof thereof They deny that the
| Missouri, Kansas and Texas Of Texas is "a
subsidiary branch OF what Is known as
the Missouri, Kansas and Texas system
and that the Lone Star line Ia common
carrier for hire of State commerce. and
insist that all its business is of an inter
state nature. They also deny that the
ships of the Lone Star line are amply fitted
for carrying on an ocean freight trade and
declare that the lines manner of doing
business has been very unsatisfactory
The answer admits that heretofore
neither the Mallory line nor the Lone Star
line have been required to prepay freight
charges but denies that such was the re-
suit OF a general custom as alleged by the
complainant in its petition for an injunc.
ton. The Katy says that such an arrange
ment may be or may not he carried on at
the pleasure OF the railroads. The Katy ad
mits through billing with the steamship
lines, but says that is done only when
there is through rate and that such an
arrangement is always the result of con-
tract and is not custom.
The existence of what Ia known MS the
Southwestern Freight bureau is admitted. |
but the positive declaration is made that !
the Katy is not o. member of it, A denial |
is entered that the purpose of the bureau is
to control the freight of interstate com
merce to the vast territory drained by the |
lines of the Southwest and hegs leave to |
present the articles of association IL this |
point should be controverted. They alsl |
deny that any conspiracy was attempted |
against the Lone Star line at the recent
New York meeting and declare that the
action of the Katy in serving no.r, uroh
he Lone Star line of it's intention to re-
luire the prepayment of freight was the
'esult of its contract with the Mallory line,
md was not induced by the action of the
New York conference,
The admission is made that the Katy
las joint tariff arrangement of through
ate and through billing with the Mallory
Inc and says it is not its present purpose
o require the Mallory TO prepay freight
harges. The Katy says that by reason of
is action the Lone Star line will not be
compelled to do business at losing rate
n order to compete with the Mallory line.
he road says it is doing business at open
nd published rates that are filed with the I
lterstate commerce commission and the 4
abroad commission of Texas,
The statement is made that a rate war
roke out as soon as the Lone Star line =
cyan business and Immediately there r
fter the Katy gave each line notice that | Il
ley would have to pay to it regular rates II
ON and to Galveston on all Texas traffic.
contract now in force with the Mallory 8
ne is admitted which includes a joint
tie, through bills OF lading and through Il
ling and a division of the through rate a.
the basis of allowing to the Katy its A
st proportion of the established tariff +,
ON Galveston to Southwestern inland IN
hints OF origin or destination, The KATY 4,
US that 1t is perfectly lawful for it and n
g Mallory line to make any division at al
q through rate as they may deem eqult- dt
lie. The railroad contends that it is ready fr
i'd willing to receive from or deliver TO "
freight that may be consigned TO ths tie
me Star line. but says that 1t is going to M
mand the prepayment Of charges 30 long
1t desires to do so and in this position
e Katy contends it is justified by law
In concluding its answer, the Katy says A.
was moved to make the contract with va
e Mallory line because 1t is in every way 70
tier equipped for business than the Lone nj
ar. It's ships run at regular stated Ia
RODS, will accommodate both passengers ia
d freight and make the trip between Gal co
ston and New York in about six days On
other hand the answer says the Lone
II line does not run ships on regular p
re, that it has a sailing about once a
elk or when it happens to think about It, n,
the boats require from eight to ten
rs to make the trip. For these reasons
Katy prays that the application for III
manent injunction against 1t be denied. sir
i the temporary restraining order al ,vi
dy issued be dissolved and that the de-
dant be permitted to so hence without W