The Washington herald., 1907-08-16
HEAR RAILROAD SIDE
North Carolina Rate Case
Taken Up in Gotham.
STATES RIGHT IS DEFENDED
Counsel for Attorney General Reads
Memorandum Insisting Upon
Pritchnrd's Lack of Jurisdiction,
and Roads Constitutional In
ability to sue the Commonwealth.


fight with the Southern Railway for a
2ti-cent passenger rate was taken up in
this city to-day, when half a dozen law
yers from that State marched into the
SOuthern's offices at 50 Broadway and be-
gan taking testimony before a master In
chaneery appointed by Judge Pritchard of
the United states Circuit Court
Upon the report OF the master will de-
pend whether Judge Pritchard will issue
a permanent injunction against the North
Carolina corporation commission and the
attorney general restraining them from
enforcing the new rate law. The tempo
rary injunction issued by Judge Pritchard
is being held In allegiance by agreement,
the railroad having consented TO conform
to the law pending a decision by the
United States Supreme Court The ap-
peal from Judge Pritchard's decision will
be carried direct to the highest court.
Brilliant Array Of Counsel.
Ex-Judge W 4. Montgomery, Of North
Carolina. is the master. The State cor
poration commission was represented at
to-days hearing by ex-Chief Justice
James E. Shepherd. Of the North Caro-
lima Superior Court; ex-CongrCssman r.
A. Woodward. ex-Judge X. W. Winston.
and State Senator Walter E, Daniel The
attorney generals interests were pro-
tected by r J. Justice, speaker OF the
North Carolina house Of representatives,
and ex-Gov Charles B. Aycock Franklin
Mcneil and Henry c. Brown, chairman
and secretary, respectively, of the North
Carolina corporation commission. attended
the hearing. The railroad lawyers were
Alfred p. Thorn, +. II. Busbey, and Wal
ter D. Hines.
Only one reference was made IN to-day's
proceedings TO the State rights phase Of
the litigation. That was when Mr. Jus
tice read a statement which made Il
plain that the State authorities had no
intention of appearing through counsel
in the present proceedings to acknowledge
the right Of the Federal court 10 grant
the injunction.
Defends state Rights,
Il specially appear for the attorney
general and his assistant" said Mr. Jus
tice. TO assert that the passenger rate
law went into effect by the operation OF
the act Of July /, 1907. and that the at
I
the corporation commission and the at
torney general from putting into effect
the provisions OF the law was pretense
at acquiring jurisdiction by Federal
court, and that the court did not acquire
/ jurisdiction through the railroad company
bringing suit against those who had moth
ing 10 do with the putting OF the Law
| into effect"
MI Justice went on to read into the
/ record that this was a fraud on the
courts jurisdiction; that the railroad
company did not sue the State OF North
| Carolina, and could not sue Il or its Of
/ flcers because OF the eleventh amend
ment 10 the Constitution OF the United
sta IS, which forbids this. and that they
did not and could not, enioin the
State. and its officers by indirec.ion
when they could not do It directly.
Counsel Thorn Objects.
Mr. Thorn. of counsel for the railroad.
/ objected TO the fling Of the Justice mem
orandum. He said that the question
OF Jurisdiction had been argued before
the court, and had been determined ad-
versely to the contentious in the memo
randum.
Vice President II. B. Spencer. Of the
Southern, and J. N. Barr. former presi-
/ dent Of the Seaboard Air Line, were the
/ only two witnesses examined to-day.
Operating Expenses High.
/ Mr. Spencer testified that, owing TO an
increase in the price OF material and
wages. the operating expenses OF rail-
roads in the South have been steadily
growing larger. The operating expenses
Of the Southern. he declared. are now
! Il per cent OF the gross receipts.
! Mr. Justice wanted to know Of Mr.
Barr If II was the policy Of the Southern
/ Railway to maintain a monopoly by
/ threatening TO make reprisals on other
railroads that contemplated entering its
| territory.
i don't think so, said Mr.. Barr.
| We'll. didn't you say at one time that
| the Seaboard Line couldn't build into
/ Greensboro. y. c.. for iear that the
! Southern would make reprtsals?"
Il did"
WAS there a gentleman's understand
! ing between the two roads In regard 10
/ thisY'
! Mr.. Barr objected TO answering that
question, but when the master ruled that
/ il was relevant he said there was none.