The Montgomery advertiser., 1907-07-14
State Cannot Drive Away
 Railroads.
OPINION HANDED DOWN
 BY FEDERAL JUDGE JONES
Foreign Roads Helped UpbuiN
 Alabama Under Contract.

ss CooDot Be OeDRave0 01
 C That Right-Tempe.
 sary I.jsnetie.s
 Judge Thomas c. Jones of the Uni ted States District Court. yesterday handed down an opinion In the litiga- ton between the railroads and tho State ofncials. holding that the law passed at the winter session of the Legislature known as the outlaw bill < is in violation of the State Constitu- ton, and therefore null and void.
 The law sought to declare that any foreign railroad corporation which should appeal from any legislative made rate to the Federal courts should, ipso factor; have its charter revoked. That law. the United States Court , holds. is in direct conflict with . pro- vision of the Alabama Constitution which guarantees to every corporation. either domestic or foreign. the same right to sue and be sued as a natural person. s .N
 The two other laws affected by the decision are those reducing the passen- ger fare over railroads in Alabama from cents a mile to 3 1-1 cents, and fixing the maximum freight rate upon 110 classified commodities The court holds that the railroads have made prima facie showing that such reductions in rates as are provided by these two enactments would constitute . practical connscation of their prop erty. and therefore directs. in formal manner. the issuancs of the temporary injunction to restrain the State of1cials from enforcing. or attempting to en- force. the two laws in question:. @
 One opinion Is handed down In all the cases brought by the various rail- road companies against the state, and all of which involve the same state of facts and the same legal .entangie- ments. : The opinion, howsver. deals only with the three laws mentioned, all con alteration of the law hxing the rates charged by the roads January last for the transportation of freight in Ala bama being omitted. The Louisville and Nashville and the South and North. 1t will be recalled, attacked the valid- ity of this enactment. which sought to nul1ify some increases in commodity rates made by thoss lines between January I and the date of the passage and approval of the act in question. VI
 UDGO8Dnt0tIOmuA 000 O1I0l4s
 Judge Jones's opinion delves deeply into the law in the case. He holds that. in the absence of any prohibition in the State Constitution. the State might at will, with or without assign ing a reason, have revoked the license of the foreign corporations to transact business in Alabama. But he calls at- tention to a specific provision of the Constitution of the State of Alabama which guarantees to such corporations the right to appeal to 'all courts" for as natural person might do.
 From another standpoint. also. Judge Jones holds that the State Is debarred from forcing the foreign railroads from the State. He points out in his decis- ion that in the years following the war between the States. when domes- tic capital was lacking and foreign upon the warranty of the new roads alone. Alabama. through her Legisla- ture and legislative enactments. ap- pealed to these foreign railroads to come to Alabama and assist in the de- velopment of the commonwealth.
 Should this be done. 1t was promised in the laws, certain privileges, among them the right to appeal to any and all courts, were granted. And the foreign
 
 came to Alabama, built some railroads and purchased others, and became great factor in the development of the State and its resources.
 Now that the State has forged ahead to a point where such aid Is unneces- sary. this Legislative contract" as 1t is termed. prevents the State from for bidding the railroads to do domestic or intra- state business in Alabama. Not faith State hut ha law of the land. stands in the way of any such repudiation of the early con- tracts under which the foreign capital was secured to Alabama.
 Tho opinion of Judge Jones in the eases deals somewhat at length with the manner in which the value of the railroads, for the purposes of the suit. shall be reached It is only the value of the property actually in use for the transportation of the public, In intra- state business. without regard to its interstate commerce, which must be considered.
 Head Notes of Decision.
 In the Circuit Court of the United
 4iabama.%Raiiroad is u" compsnies e' Vt Vt
 Railroad Commission of Alabama.
 ct al.
 1. Under Section 24o of the Consti.u- tion of Alabama. which declares, that all corporations shall have the right to sue. and shall be subject to be sued fin all courts, in like cases. as natural persons" the Legislature is forbidden to impose any penalty upon a foreign corporation for bringing suit in the Federal Court. or in any other court, when no such consequence attaches to a domestic corporation or a natural person who brings like suit here
 3. The Act of the Legislature of Alabama. approved March 6, 1907, pro- viding that any foreign corporation which shall institute a suit in any Federal Court to enjoin or restrain cry intra- state transportation rates fixed by the Legislature. or by the Railroad Commission, shall ipso facto forfeit its right to do domestic business in this State, is an attempt to do indirect ly what the Constitution forbids to be done directly. It puts onerous condi- tions on the exercise of a right which the Constitution forbids to be invidi ously or unnecessarily burdened. in or der to deter the corporation from the exercise of the right It is also d de- nial by the State of the equal protec NR h Ia faAa