The Birmingham age-herald., 1902-10-22
CLAIM THAT RATES
 VIOLATE TIE LAW
Chattanooga Commerce Case
 Aired Before Commission.
MANY DEFENDANT ROADS
Main Lines Are Southern, L. 6 N. Chattanooga and St. Louis, Texas Pacific, Central of Georgia
 and others-speeohes.

Washington, October 21.-The alleged freight tariff discrimination of the Louis vile and Nashville and other railroads and steamboat lines against Chattanooga and in favor of Nashville was aired in the interstate commerce commission in q hearing today on the complaint of dis crimnation made by the Chattanooga chamber of commerce. No question was raised as to the fact of the existence of difference in rates to points named, coun- sel for the roads claiming they had the right to make such rates to develop traf fc. The Chattanooga complainants al- legged that the tariffs violated the law.
 The defendant lines are the Southern, Louisville and Nashville, Chattanooga and St. Louis, the Cincinnati New Or leans and Texas Pacific, Chesapeake and Ohio. the Georgia Railroad, the Central of Georgia, Norfolk and Western, Balti- more and Ohio. Pennsylvania, New York, New Haven and Hartford, and Atlantic Coast Line railways. the Merchants and Miners Transportation company, the Clyde Steamship company and the Ocean, ic Stamship company.
 L. A. Staver, of this city, representing the Chattanooga complainants and the interstate commerce commission. review ed the situation and alleged that the diff ferences in the rates to the two cities constituted violation of sections 1. and 1 of the interstate commerce act.
 Rates Not Properly Adjusted.
 He contended that the freight rates made by the defendant companies on the different kinds and classes Of freight from Boston, New York. Philadelphia. Baltimore and other eastern seaboard points are higher for the shorter distance to Chattanooga than for the longer dis tance over the same line and in the same direction to Nashville.
 Edward Baxter of Nashville, represent ing the railroads, admitted that there was no question as to the differences Tn the rates, but he asserted that the roads had the right to fix any tariff necessary to enable the business interests of It's lines to develop. He argued that a rail- road had the right to put into operation such a schedule of rates for carrying freight over it's lines and it's connections as would enable the cities thereon to in augurate competition with cities on other and competing lines It was no part or the duty of railroad company, he con NVhdSbb tO OtoNAOl d NAty oi AAS OMh illlt by maintaining such tariffs as would pre- vent the development of it's business. He pointed to the necessity or the railroad lines meeting the water transportation rates. Counsel cited the government aid in the construction of the trans-conti- mental railroads in support of the argu- ment that a railroad has the right to de- velop the traffic on its lines.
 30 Per Cent Offer Accepted.
 Baltimore, October H.-I3y unanimous vote the committee representing the bond holders of the Nashville Railway com pany decided today to accept the offer of 80 per cent rendered by the reorgani- zation. which is being financed by Laden burg, Thalmann & Go. of New York and Isaac Newman & Sons of New Orleans, which contemplates the purchase of S2, 3OO000 outstanding bonds at so per cent and the assumption of all debts, con- tracts and liabilities of the company ex- cept certain counsel fees. The stockhold- CTS of the company will be given an op- portunity to pass upen the proposition of the reorganization committee.
 The bondholders committee, which met here today, Is composed of John B. Ram say, chairman Frederick M. Colston, William c. Sedden, John N. Steele and R. Lancaster Williams. The Nashville Railway company went into receivership on June 21, 1901.