The Montgomery advertiser., 1902-05-30
MR.. FINLEY TALKS.
Quotes Supreme Court Of Tennessee
ON the Same Question.

& Washington. May @.-Vice- President
Finley of the Southern Railway today
made the following statement:
Il have information that the railway
companies entering Memphis, Tenn. and
interested in the transportation Of cotton
from that point have been indicted by
Memphis on the charge that the railway
companies entering the city have denned
the respective portions Of cotton which
they are prepared to handle frcm and
ago 1t was alleged rebates were being Sc
cured and rates unlawfully reduced
through the routing Of cotton via certain
to stop these illegal practices. and in pur-
suance of. the policy of the lines In the
South to CONDUCT trade with proper Oh
servance of the laws OF the country,
steps were taken by the lines entering
Memphis individually to control the rout-
ing with respect to intermediate lines:
furthermore. and acting under the advice
Of counsel. traffic ofhcials Of the various
lines recognising the exceptional condi-
tions under which the cotton crop IL
moved and the dependence Of interior cot
ton markets In the South on a REASONABLE
regulation Of the cotton movement. adopt
ed the principle Of announcing each for
himself alone the proportion of. cotton
| his company was prepared to handle. NO
penalty was attached ana no agreement
both Of these arrangements were in
volved In a suit subsequently brought at
Memphis entitled Post VS.. Southern Rail-
way Company and In that suit the Su-
preme Court .cf. Tennessee held as fol-
Where goods are rendered for ship
ment to a point beyond the initial car
| rier's line and there are several routes
equally safe. prompt refisbie ana cheap
| such CARRIERS ecanuot be. compelled TO ac-
| cept the goods to be carried over one
route in preference to another Mt the
shippers option, unless some reason APP
Il - t-.tt. - ~
Of one route may be advantageous to the
carrier without injury or sacrifice TO the
| shipper
to take a through shipment to point
beyond its lire over any particular route
merely to enable the shipper or consignee
to get rebate under secret agreement
with the line.
:" An initial carrier is liable to the
shipper for loss from Its selection of an
insolvent company as the connecting. line
in q through shipment to point beyond
its line.
I'm order to obtain relief in courts
OF equity against the concerted action OF
carriers, there must not be only concert
OF action. but its direct and immediate
effect must be to restrain commerce and
trade; and this IL not the case where the
roads simply make declarations that they
will not cut unlawfully or secretly reduce
their published rates on cotton from a
certain point and that. to preserve the
integrity of such rates, they will control
the routing of cotton and that they will
limit to a certain per cent. the carrying
Of cotton from and passing through such
point. and where the rates were not ad-
vanced in consequence OF such declara-
ton. but were maintained at reasonable
figures, where competition had placed
them.
IT am at a loss to account for such 'ac-
ton OF the grand jury of the Federal
Court at Memphis and the causes inspir-
ing such action, in the light of the above
decision"