The Montgomery advertiser., 1907-08-09
Southern Agrees to Lower Rate
 for Both Freight and Passers, ,ers
 to Get Its ReUoked License Back.
Text of Compromise
 Offer by Railroad.

The exact terms of the agreement between the Southern Railway and the State are given in two communications signed by J. s. B. Thompson and Alexander P. Humphrey, two of the representatives of the Southern, and addressed to Governor Conner. The first of the two embraces the counter proposition submitted by the railroad men in reply to that first made by the Governor, and the second makes an amendment to the first.
 Thestwo communications follow:
 At Montomery. Ala. August 8, 1907.
 Hon. B. B. Conner. Governor of Ala
 bama, Montgomery. Alabama.
 Dear Sir:-Referring to the conver- 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 Southern Rail- way Company desires to make to you as Governor of the State of Alabama
 As of July 1, 1907, the Southern Rail- way Company secured a license under Senate Bill No. S6.
 A suit was brought against the Southern Railway Company in the Circuit Court of 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 filed 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 long before the license was required to be taken out, and indeed long before the act requiring the H. cense was passed, 1t is the opinion of counsel of the Southern Railway hof hn hxy | petition to remove this suit was not inimical to Senate Bill No. 86. They also are clearly of the opinion that it Is not competent for the State or Alabama 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 1t by reason of such removal.
 Nevertheless the license has been endorsed cancelled by the Hon. Frank N. Julian. Secretary of State.
 The Southern Railway Company has a suit pending in the Circuit Court of the United States against the Rail- road Commission of Alabama This suit has for its purpose, among other things, to declare unjust and unrea- sonable the rates fixed by the passen- ger act (befng Senate Btif No. 5), and by the maximum freight bill being Senate Bill No. 15). and by the act fixing maximum rates on certain arti- cIes (being Senate Bill No. 16). In- terlocutory injunction has been op- tained in this case suspending the rates fixed by the passenger rate law Senate Bill No. 5), and by the act to fix maximum freight rates for certain articles Senate Bill No. 16), until the case can be finally determined. We understand that 1t Is proposed | to institute certain prosecutions | against the Southern Railway Com | pany and its agents and employees for l its alleged violation of Senate Btll No. | S6, being the one under which 1t se- | cured its license, upon the ground or | it's having removed a case from | State court to the Federal court, and i the license issued to 1t as above having been cancelled, it is thereafter pro- | hibited from carrying passengers or freight between points within the | State of Alabama. The South ] ern Railway Company does not recognize either the legality or the Justice of this contention. It would | be difficult to estimate the snconveni- ence which would be suffered by the | people of Alabama If the Southern l Railway Company should cease to transact any intra-State business upon its lines The Southern Railway Com pany recognizes that it will be unfor- tunate for 1t. and for its patrons. cit- izens of the State of Alabama, if the Southern Railway Company shall be engaged in any seriously disturbing controversy with the authorities of the State of Alabama. It has within the very recent past avoided a similar con fiict with the State authorities of'North Carolina and Virginia. In both of these States it has, notwithstanding the existence of an interlocutory injunc- ton, put into effect pending the de- termination of the cases there pend- ing, the intra-State passenger rates prescribed by the States of Virginia and North Carolina. The suit in North Carolina also affected certain freight rates, but the interlocutory injunction with respect to these freight rates has not been abandoned. | While the sacrifices to It's revenue is a matter of no small moment. and surrender of it's legal rights a mat ter of serious concern. yet 1t Is will ling to make such sacrifice and sur render rather than enter into or pro- long what might become an angry contest with the authorities of the State of Alabama. To that end. in