The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-06-03
AGAINST SIX RAILWAYS ENTER
ING MEMPHIS
INTERSTATE. COMMERCE
Charged I'm the Federal Court With
Forming an Unlawful Combination
for the Transportation of Cotton
From that City on n Pro Rata
Basis-yice-President Finley of the
Southern Expresses Great Surprise
Court Decision On This Matter.

Memphis, Tenn. May @.-Six rail-
roads entering his territory have been
indicted by the federal grand jury in
session IN this city on the charge hat
there is a declaration" or agreement
between them constituting a pool for
the purpose OF dividing on a pro rata
basis. the cotton shipped out of. Mem
phis, as well as To maintain rates.
The roads indicted are the Illinois
Central. the Louisville and Nashville,
the St. Louis. Iron Mountain and
City, Memphis and Birmingham. the
Southern railway and the Nashville,
Chattanooga AID St. Louis. The indict-
ments were returned under section >
of the interstate law. as
amended. for the regulation of common
carriers In the United States.
United States District Attorney RAN
dolph and J. T.. Merchant. special at
torney Of the interstate
commission, are conducting the prose-
cution.
Washington, May 29.-President Fin
ley. of the Southern Railway Company
today made the following statement.
Il have Information that the railway
companies entering Memphis, Tenn,
and interested in the transportation of
cotton from mat point have been in
dicted by the grand jury of the federal
court, at Men phis, Tenn, upon the
charge that the railway companies en-
tering hat city have defined the re-
spective proportions of cotton which
they are prepared to and from and
passing through that city, inter sese.
several years 6 it was alleged
that rebates were being secured and
rates unlawfully reduced through the
routing Of cotton via certain informed
late and connecting lines. and to stop
these Illegal practices, and in pursu-
ance of the pCllcy of the lines in the
south to conduct trade with proper
observance of the laws of the country,
steps were taken by the lines entering
Memphis individually to control the
routing with respect to intermediate
lines: furthermore, and acting under
the advice of counsel, traffic officials of
the various lines, recognizing the ex-
ceptional conditions under which the
cotton crop is moved and the depon-
dence of interior cotton markets in the
south on a reasonable regulation of the
cotton movement, adopted the princi-
pie Of announcing each for himself
alone the proportion of cotton his COM
pany was prepared to handle. No
penalty was attached and no agreement
was entered into.
Both these arrangements were in
volved in a suit subsequently brought
at Memphis. and entitled Post VS..
Southern Railway Company and in that
suit the supreme court of Tennessee
held as follows:
Where goous are rendered for ship
ment to i point beyond the initial car
Il rinr'S limo md thnrA 49, a,,o -~,4-
equally safe. prompt reliable ana
cheap, such carrier cannot be compell-
ed to accept tie goods to be carried
over one route in preference to anoth-
er: at the shipL er's option, unless some
reason appears therefor; especially
where the use OF one route may be adj
vantageous to the carrier, without in
jury or sacrifice to the shipper.
IAN initial carrier canno be COM
PEELED to make a through shipment to
a point beyond it's line over any par
| ticular route. merely to enable the
shipper or consignee to get a rebate
under a secret agreement with a GER
tain line.
IAN initial carrier is liable to the
shipper for loss from it's selection of
an insolvent company as the
ing line in a through shipment to a
point beyond Its line.
In order to obtain relief In courts
of equity against the concerted action
of carriers. there must be not only con-
cert of action, but it's direct and i'm
mediate effect must ge to restrain
m n trade; and this is not
the case where the roads simply make
declarations that they will not cut I'M
lawfully or secretly reduce their pub
lished rates Oh cotton from a certain
point, and that, to preserve the in
tegrity of such rates, they will control
the routing of cotton from and passing
through such point, and where the
rates were not advanced in conse-
quence of such declaration, but were
maintained at reasonable figures.
where competition had placed them
Il am at a less to account for the
action Of the SIand jury OF the federal
court at Memphis, and those inspiring
such action, In the light Of the above