The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1907-07-02
CAN'T SUE IN STATE
COURT

CUUkI
Bringing Suit for Penalty, Ex-Judge
Montgomery, of Raleigh, viii Take
Testimony and Case Will Be Heapd
in October-The People Have No
Rights That Federal Judge Can
not Postpone or Take From Them.
Especial to News and Observer
Asheville. N. c., June 29.-This was
the most interesting day of all in the
hearing before Judge Pritchard, of
the suits brought by the Southern
Railway Company and other railroad
corporations to enjoin the corporation
commission of North Carolina from
printing and putting into effect the
new freight rate and passenger fares
Jaw passed by the legislature of 1907.
At the conclusion of the argument
this morning by Walter B. Daniel for
the defendants in the suit of the stock
holders of the Atlantic Coast Line
Railway against the Corporation Com
mission Judge Pritchard announced
his decision in the case of the South
ern Railway Company against the
Commission which was concluded
Thursday afternoon The court con-
tinues the restraining order pending
a final hearing and refers the matter
TO Judge Montgomery, standing mas
ter for the Eastern district, to take
testimony and report his finding of
facts and conclusions of law to the
court at Asheville the latter part of
September. In short the status que
of the cases is maintained and the new
rates promulgated by the legislature
will not go into effect Monday, July /.
The case of the Atlantic Coast Line
was disposed of in similar manner
this afternoon. The Coast Line refer
ence was also made to Judge Mont
gomery. who will report to Judge
Pritchard this case the first Monday
in December. The Southern case
will be heard the first Monday in Oc-
tober and the Atlantic Coast Line the
second Monday in January. The At
lantic Coast LIE was required to
give bond in the sum Of s175 900, and
the Southern in the sum of 1925, 200.
Protection for Travelling Public.
In signing the order continuing the
injunction Judge Pritchard made pro-
vision to protect the travelling public.
on and after Monday and until the
controversy is settled the Atlantic
Coast Line and the Southern will give
10 each passenger a receipt for the diff
terence between the present rate and
what the new rate would have
been. The railroads will deposit
With the clerk of the United States
Court at Raleigh a sum sufficient to
cover these receipts or due bills" in
the event the suits finally go against
The railroads.
AicmOrandum by the Court.
Il have prepared a memorandum Of
some Of the reasons by which I have
reached my conclusion said the
eourt- Il shall at an early date pre-
pare an opinion, in which l shall dis
cuss at some length the various
questions involved He then read the
following memorandum:
1T is charged in the bill filed by the
complainant that the legislature of
North Carolina, at its recent session,
nasscd act regulating freight and
passenger rates and that by virtue of
the provisions of said act. complain-
ant is about to be deprived of its
property without due process of law.
The complainant seeks to enjoin
the enforcement of certain freight
and passenger rates upon the ground
that the statute prescribing the same
he United States. 1t is contended
that the lapse of any considerable
lime would expose complainant to
Vulnerable suits by shippers and the
rave cling public we'll as subject it
'' the penalties enumerated in the
s.aJUte
Among other things the complain
ant prays for an injunction against
The Railroad Commissioners, the At
forney General and the Assistant At
f'rney General during the pendency
'f this cause. On the eighth day Of
Nay. 1907, an order was entered re-
.''3lnlng the defendants from enforc- /
ing the provisions of the aforesaid |
."t and at that time notice was is |
sued to the defendants to appear be- I
.tFe me on the 26th day of this month /
ana show cause why the injunction
I'uS granted should not be continued (
until the final hearing.
Position of the Defendants
The defendants insist first that this |
suit against the State of North /
arohna and that the court cannot |
sage jurisdiction Of the same consist |
l.< with the 18th amendment to |
constitution of the United States.
the complainant has not
s.+"h facts sufficient TO justify the
'.Et in continuing the injunction /
-..o3 the hearing.
State Sovereignty.
Much has been properly said bv /
..''.@ei representing the State in re-
. 10 the sovereignty of the state |
-+ .ts right to deal with this question |
-@1 its legislature. That the leg
lre Of the State has the authority |
ann certain limitations to fix freight /
.r- passenger rates is undoubtedly |
~ ana IS universally recognized by !
~ tdeTal courts. The courts of the |
l,s9 states have at all times ac-
MIeused and respected the power |
Ae State in the administration |!