The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1907-08-10
DETAILS OF AGREEMENT
REACHED AT MONTGOMERY

sation which we had with you last
night and to the memorandum which
we then handed you, we desire to
state somewhat more. formally what
is the proposition which the South
ern railway company desires to make
to you as governor of the state of
Alabama.
AS of July 1, 1907, the Southern
Railway company secured a license
under senate bill No. Sc. A suit was
brought against the Southern Rail-
way company in the circuit court or
Talladega county in October, 1906,
five months before the act requiring
the license was passed, and nine
months before this same act required
the license to be taken out.
The Southern Railway company
f1ld a petition in the Talladega circuit
court for the removal of this case to
the circuit court of the United States
As this suit so sought to be removed
was filed so long before the license
was required to be taken out and in
deed long before the act requiring the
license was passed, it is the opinion
of the counsl of the Southern Railway
company that the filing by it of the
petition TO remove this suit was not
inimical to senate bill No. Sc. They
also are clearly of the opinion that it
is not competent for the state Of Ala
bama to deprive the Southern Rail
way company of its right under the
constitution and laws of the United
States to remove a case from the state
court to the federal court, or to can
eel any license issued to it by reason
of such removal. Nevertheless. the
license has been endorsed concealed
by the Hon. Frank n. Julian, secretary
of state.
Suit Against Commission.
The Southern Railway company has
a suit in the circuit court of the
United States against the railroad
commission of Alabama This suit
has for its purpose among other things
to declare unjust and unreasonable
the rates fixed by the passenger act
(being senate bill No. 15) and bv the
maximum freight bill (being senate
bill No. 15) and by the act fixing
maximum rates on certain articles
(being senate bill No. 16). InterIuc-
unnamed
this case suspending the rates fixed
by the passenger rate law (senate
bill No. 81 and by the act to fix max
lmum freight rates for certain articles
(senate bill No. 16) until the case can
be finally determined. We understand
It Is proposed to institute certain
against the Southern
Railway company and its agents fsr
rs alleged violation of senate bill No.
So, being the one under which it Sc
cured its license, upon the ground of
is having removed a case from a
state court to the federal court and
The license issued to it as above hav-
ing been cancelled. 1t is thereafter
prohibited from carrying passengers
D. freight between points within the
state OF Alabama. The Southern
Railway company does not recognize
either the legality or the Justice of |
his contention. 1t would be difficult |
o estimate the inconvenience which |
would be suffered by the people CT |
Alabama if the Southern Railway
Company should cease to transact any
ntrastate business upon its lines.
Wants No Conflict.
The Southern Railway companv |
recognizes that it will be unfortunate |
or 1t and for its patrons, citizens of |
ne state OF Alabama, if the Southern |
railway company shall be engaged in |
my seriously disturbing controversy
WIN fthe authorities Of the state OF |
AIabama. 1t has within the very re-
'ent past avoided a similar coniict
Win the state authorities of North |
carolina and Virginia. In both O.,
heSe states it has, Notwithstanding
he existence of an interlOcutorv in
uncnon, put into effect pending the
determination of the cases there |
bending, .ne- intra-state passenger
ates prescribed by the states of Vir-
1nia and North Carolina The suit
n North Carolina also, affected GER
ain freight rates, but the interlocu-
DRY injunction with respect to these |
reign rates has not been. abandoned. |
while the sacrifices to its revenue is
matter of no small moment and a |
urrender of its legal rights a matter |
Z serious concern, yet it is willing to
make such sacrifice and surrender |
ather than enter into or prolong
What might become a bitter contest |
With the authorities of the state Il
Alabama. To that end. in accordance |
With the terms hereinafter stated. II
5 willing to put into effect, pending |
he determination of its suit, the two |
md one-half cent intra-state passen-
5er rate prescribed by senate bill |
70. 5.
Settlement Proposed.
In the interest of order and peace
now proposes to you the following
ettlement:
First-That the license issued to It |
n July 1, 1907, be restored by the
of the revocation of such |
license, or in such other manner as
nay by counsel be declared to be
Elective
SecOnd-That one test case shall |
De made to determine the constitution
llity of senate bill No Sc, or so much