The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-05-30
Vice President Finley's Statement.
CRv tie Associated Press.l


Washington. Nav 29--Nice President
Finley. of the Southern Railway Com
panv. made the following statement:
Il have information that the railway
copDanies entering Memphis, Tenn. and
interested in the transportation OF cot
ter from that point have been indicted
by the grand jury of the Federal court,
at Memphis, Tenn, upon the charge tfat
the railway companies entering that
city have defined the respective nropor-
tions of cotton which they are prepared
to handle from the passing through that
city, inter Sc.
Several years ago it was alleged
rebates were being secured and rates
uplawfully reduced through the routing
of cotton via certain intermediate ana
connecting lines and to stop these 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 hy the
lines entering Memphis individually to
control the routing with respect to inter-
mediate lines: furthermore, aud acting
under the service of counsel traffic Of
ficials of the various lines, recognizing
the exceptional conditions under which
the cotton crop is moved and the depend
ence of interior cotton markets in the
South on q reasonable regulation of the
cotton movement adopted the principle
of announcing each for himself alon& the
proportion of cotton his company was
prepared to handle No penalty was at
tached and no agreement was entered
into.
Both of thes arrangements We're in-
volved in a suit subsequently brought
at Memphis, ard entitled Post VS.. South
ern Railway Company and in that suit
the Supreme Court of Tenn essee held
as follows:
"HNherc goods are rendered for ship"
mont to a point beyond the initial car
rierG line, and there are several routes
equally safe, prompt, reliable and cheap,
such carrier cannot be compelled to ac-
cept the goods to be carried over one
route in preference to another, at the
shippers option, unless some reason APP
pears therefor; especially where the use
of one route may be advantageous to the
carrier, without injury or sacrifice to the
shipper.
"'An initial carrier caEnot be COM
pclled to make through shipment to a
point beyond its line over any particular
route, merely to enable the shipper OF
ccnsignee to get a rebate under secret
agreement with a certain line.
can initial carrier is liable to the
shipper for loss from its selection of an
insolvent company as the connecting line
in 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 its direct and imme-
date effect must be, to restrain com
mcrce and trade. and this is not the case
where the road simply make declarations
that they will not cut unlawfuliy or Sc
Cretly reduce their published rates OF
cotton from certain point, and that. tc
preserve the integrity of such rates
they will control the routing OF cotton
from the passing through such point, ano
where the rates We're not advanced II
consequence of such declaration. were
maintain at reasonable figures where
competition had placed them.
| Il am at a loss to account for the
action of the grand jury of the Fedora
| court at Memphis. and those inspiring
| such action in the light OF the abov:
| decision" a