Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-07-21
$4,000 SUIT
AGAINST THE
RAILROADS
FIRST SUIT UNDER SHERMAN
ANTITRUST LAW Is FILED BY
I'm. INMAN AND ]. F. MEOW
AN FOR DAMAGES.

A sensational suit Involving damages
EFg-egating SI7s.5e0 vas fled Saturday
BY Attorneys Rosser and Brandon In the
United States circuit court for ]. w.
Inman and J. F. MCGOWAN. the sur
.viving members OF the firm OF Inman &
Co. striking directly az the Southeastern
Freight association. and charging in
fraction OF the provisions Of the Sherman
antitrust act by the Louisville and
Nashville. the Atlantic Coast Line. the
Southern. the SeabOard Air Line and the
Central Of Georgia Railway companies.
This Is the first suit Of the kind 20 be
fled In Georgia claiming damages under
the Sherman act The suit Is based on
damages alleged TO have been sustained
on account Of the Illegal handling OF cot
ton between Athens and Augusta. Ga
The petition prays $500 actual dam
ages under the Sherman act. which gives
the further right 70 recover three-foid the
amount OF actual damages. together with
reasonable attorneys fees. The Sherman
act Is designed TO protect trade and
commerce against unlawful restraints
and monopolies. and particularly 20 pre-
vent the existence and maintenance OF
unlawful combinations and agreements
between common carriers. In the form
Of trusts or otherwise. IL being the same
act under which the Federal grand jury
has OF late taken the railroads TO task
ling OF cotton
The Allegations.
Briefly stated. the petition alleges that
certain cotton was purchased by Inman
& CO. In Athens. and was shipped
through Augusta 10 Europe and TO vari-
Gus domestic points on through bills OF
lading. issued by the lessees OF the Geor-
gia road. with the privilege Of holding
the cotton at Augusta for inspection,
Han 4
PENDANT roads instead OF forwarding the
cotton directly to Augusta, did divide IL
among them IN accordance with pre-
viOusly made agreement. and did forward
IL BY various routes. IN consequence Of
which the cotton arrived IN Augusta from
one TO twenty days late and thereby
caused the firm loss Of $500
In detail the petition alleges that on
November !. IssS and on various dates
subsequent up 10 April ]. 1900. Inman &
Co. delivered 70 the Louisville and Nash
vile and the Atlantic Coast Line. lessees
OF the Georgia road between Athens and
Augusta. 1oOss bales Of cotton. for which
through bills OF lading were issued. with
the usual permission to hold the cotton
at Augusta
II Is alleged that instead OF the Louis
vile and Nashville and the Coast Line.
lesSees Of the Georgia. hauling the 1908
bales OF cotton as they agreed TO do by
their bills OF lading. they turned IL all
over 20 the Southern. the Central and
the Seaboard. in order to comply with
pooling agreement so called. which II IL
alleged was forbidden end declared to be
q crime by the Sherman antitrust act.
The conditions OF the alleged unlawful
agreement are declared TO be as follows:
Tho Central was 10 carry out OF Athens
all cotton brought by II into Athens and
also 2 per cent Of all cotton carried into
~fe M~~ I'll ct a
ton than the railroads: the Atlantic Coast
Line and the Louisville and Nashville. as
lessees OF the Georgia. 20 carry out 50 Is
per cent OF the remainder, the Southern
. - per cent ard the Seab0erd 80 Is per
cent
Conspiracy Alleged.
II Is alleged that this agreement among
the railroads was an unlawful contract,
combination and conspiracy. IN restraint
Of interstate commerce. and as such was
a violation OF the Sherman act.
II declares that the railroads main
taincd ~ Athens n person known as
joint agent, who WIS required 10 see 70 -
that al cotton shinned from Athens
should be so divided. despite the fact that
the defendant csmpanics knew that the
conditions controlling the business Of buy
ing and selling cotton required prompt
service on the part Of the caTriere. II IS
further alleged that every bale 81 the
1aCss ales arrived In Augusta from one
10 % days late. all Of !; OF an average Of
sis day. lste. causing 20 the firm loss
en- profits. coed will and expense o. $500.
After Frsilht Association.
As spec al a-tvgs. -icn u ghe petition
IL Is declared that the sole reason FOR the
existence Of the Southeastern Freight as
ISOLATION. maintained hy these and other
railroads throughout South Carolina. Ala
ba-ua and Georgia. IS 20 encourage the
making OF contracts between the roads
where they meet in competition. similar
70 the Athens agreement. whereby al RI
vulry between them IS forbidden and each
ruad Is forced 70 make the same charges
between given points: and also 10 see 10 II
that ali cotton shipped from Athens and
from all other points In the associations
TERRITORY shall te divided en- some basis
similar 20 that alleged to be maintained
at Athens.
The suit is one that VII attract very
considerable attention throughout the
southern states. In-nan & Co. are partic-
ulariy large handlers Of cotton. and their
fight against the railroads is already Civ
en- a certain moral support by the recent
indictments found against the railroad
companies BY federal grand juries IN AT
ianta and elsewhere
With Bosser & brandon. the Atlanta
attorneys. IS associated ". II. Barrett,
Of Augusta