The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-03
ALABAMA BARS SOUTHERN RY.
LICENSE 70 do BUSINESS IN THE
STATE rs REVOKED

Removal Of q Case From q Btats 90 o Federal
Court. being tire Excuse Onercd. May
Put state Orncers In Contempt oil u q.
Tribunal Virginia May Take Action.
MONTGOMERY, Ala. Aug. The license
OF the Southern Railway to do business in
the State OF Alabama has been revoked by
Secretary Of State Frank N. Julian, who has
caused to be entered upon the stub of the
license, in the records Of his ONCE. the
statement that for violating Senate bill
No. SO. approved March. 1907, and effective
July. just passed. the said Southern Rail-
way has been deprived Of its right TO do
business in the State.
The action Of the Secretary OF State Is
not in resistance to restraining orders \
issued by the United States Court OF the
Fifth Circuit. it is said. as this law is not
among those combated by the railroads
and Is not included in any Of the litigation
now pending in the court of Judge ThomO
q. Jones Of the Middle Alabama distrio@
hence the situation il not that Of conflict
Of the State and the Federal tribunals,
The complaint upon which the revocation
was made came from the Circuit Court Of
Tallsdega county in the shape of a notiHca-
ton from Clerk J. d. McNeel that a suit had
been removed from the State court to ths
Federal court.
The act requires that after July 1 every
foreign corporation shall pay a license Of SO
a year. that the Secretary of State shal
keep a complete record Of moneys collected
and that it will be unlswful for any corpora
ton to do business in the State without psy.
ing this license.
Section 4 provides that when any foreign
corporation Ia eue in a State court and
removes such suit from the State 10 q
Federal court the clerk Of the court from
which the removal is made will ut once
certify such action to the Secretary Of
State. who shall thereupon Immediately
cancel said license and make md enter
upon the stub thereof an order in sub
stance:
This license will be cancelled for a vio-
lation OF the act under which issued by
the removal Of a civil cause from the court
OF this State to the Federal court
This shall be evidence Of revocation Of
the license in any court Of the STATE. II
also says that after such revocation amy
contract. agreement. engagement or under
taking with or by or to such corporation
shall be utterly null Inc void
IL is not unlikely that the Federal court
may get into the row even IL contempt pro-
ceedings are not brought. 1t may hold that
the act 10 in spirit a reenactment Of the
revocation bill hat Judge Thomas G.
Jones has declared to b illegal.
The effect would be to deprive the South
ern Railway. Of the right Of doing business
In the State, a thing that was contemplated
IL the other revocation act had been allowed
to stand.
An extra session OF the Legislature will
be held in the fall 10 adopt more stringent
railroad regulation laws to meet the situa-
ton created by the sriou rate regulation
laws being enjoined in the Federal courts.
The Southern Railway owns more than
1900 miles OF road in Alabama and millions
of dollars worth Of property.
President Finley Of the Southern Rail
way. who was at the railroads. New York
offices at 80 Broadway to-day. said this
afternoon that he was being advised about
the situation in Alabama but did not care
to say anything about the matter a. yet.
1t was possible. he said. that he would give
out some sort OF a statement tomorrow
setting forth the Southern's side Of tbs
question.
Mr.. Finley was asked IL he had anticipated
any such move as the State authorities had
taken against his road in Alabama. In
reply he declared he did not wish to say
what he had or had not anticipated.
In Wal Street the agitation against the
railroads that shows its latest manifesto
ton in the cancelling OF the Southern Rail-
ways license in Alabama is regarded more
as a political boomerang than anything
else. The political side of IL IL thoukhs to
obscure the other side which breeds hesita-
ton in the investing public and discour-
agement in the market.
Inasmuch as sentiment plays a large part
in the securities market an action such a.
hat OF the Alabama administration, no
less than that OF Gov. Glenn in North Caro-
lima. is said to De well calculated to revive
distrust in the securities market and undo
all that has been done to restore public
confidence since March. 1t Ia generally be
lieved. however, that the Street chooses to-
day to regard Alabama's action as amusing.
a piece Of political bluff that will shortly be
seems to be confident that the cancellation
OF the Southern's license in Alabama win be
Immediately exposed as frivolous.
VIRGINIA NAY AMEND Law.