The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-05-30
MIR. FindIey,s statement.

Washington, May 29.-Vice President
Finley of the Southern Railway Com
pany to-day made the following state
ment:
Il have information that the railway
companies entering Memphis Tenn,
and interested in the transportation of
cotton from that point have been in
dicted by the grand jury of the federal
court at Memphis upon the charge that
the railway companies entering that
city have defined the respective pro-
portions of cotton which they are pre-
pared to handle from and passing
through that city.
Several years ago it was alleged re-
bates were being secured and rates UNI
lawfully reduced through the routing
of cotton via certain intermediate and
Illegal practices, and in pursuance of
the policy 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; further
more, and acting under the advice Of
counsel, traffic officials of the various
lines, recognizing the. exceptional con-
ditions under which the cotton crop is
moved, and the dependence of interior
cotton markets in the South on a rea-
sonable regulation of the cotton move
ment. adopted the principle of announc-
ing each for himself alone the proper
ton of cotton his company was pre-
pared TO handle. No penalty was at
tached and no agreement was entered
into.
Upheld by Supreme Court.
Both of these arrangements were
involved in a suit subsequently brought
at Memphis and entitled Post versus
Southern Railway Company. And in
that suit the Supreme Court of Ten
nessee held as follows:
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, reliable and
cheap, such carrier cannot be compelled
to accept the goods to be carried over
one route in preference to another, at
the shippers option, unless some rea-
son appears therefor, especially where
the use of one route may be advan-
tageous to the carrier without injury
or sacrifice to the shipper.
An initial carrier cannot be COM
PEELED to make a through shipment to
point beyond it's line over any par
ticular route, merely to enable the ship
per or consignee to get a rebate under
a secret agreement with a certain line.
An initial carrier is liable to the
shipper for loss from it's selection of
ing line in a through shipment to a
point beyond it's line.
Roads Position Defended.
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 its direct
and immediate effect must be to
restrain commerce and trade and this
is not the case where the roads sim
ply 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 certain per cent
their carrying of cotton from and pass
ing through such point and where the
rates We're not advanced in consequence
of such declaration, but were main
tanned at reasona BILE figures where
competition had placed them
II am at a loss to account for the
action of the grand jury of the Federal
Court at Memphis and those inspiring
such action, in the light of the above
decision"