The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1907-08-01
President w. w. Finley
Of the Southern Railway, Under
Date Of July 10th, Issues State
ment to the Public Setting Forth
Status of Rate Controversy From
the Railroads Side of the Oues-
tion Action Was Judicial and
Orderly, He Contends.
SOUTHERN RAILWAY CO.,
OFFICE OF THE PRESIDENT. :
- Wn shin Of On III n InIn 81

~ L W. vi IL II
s - Washington,D C., July 20
To the Public Served by the Southern
Railway Company:
The Incidents of the last few days
involving the arrest and trial of the
agents OF the Southern Railway Com
pany selling tickets in the State of
North Carolina make it altogether
proper that this Company should in
form the public, with which it desires
to be cooperative, of the exact status
OF the presentcontroversy. 1t is we'll
known that at the last session of the
Legislature an act was passed, re-
quirlng tickets to be sold for passen-
ger travel in the State at Il rate not
greater than two and Il quarter cents
per mile. This act was made to take
effect the first day of July, 1907. The
duty OF enforcing legislation in re-
gard to railroads is imposed by the
statutes OF North Carolina upon the
North Carolina Corporation Com
mission. The Southern Railway
Company, upon an examination of
the revenue derived by it from State
travel, in the State of North Caro-
lima, found that to reduce it's passen
ger rate to two and Il quarter cents
per mile would SO largely diminish
this revenue as to make the enforce
ment OF this passenger rate equiva-
lent to IL cOnfiscatlOn OF its property.
The Supreme Court OF United States
has decided that in cases OF this kind
it is competent for the railroad com
panies to file suit in Federal Court
making parties defendant such a
body as the North Carolina Corpor-
alton Commission, and have a COM
prehensive inquiry made into the sit
uatiOn, and determine in an orderly
way whether or not such an act as
the one now in question is violative
of the Constitution Of the United
States as a deprivation of the prop
erty of the railroad company with
out compensation, and as denying to
the railroad company equal protec-
| ton OF the laws. Such suits as these
have been from time to time filed in
IL very large number Of the States of
the Union, and have heretofore pro-
gressed i'll an orderly way to a final
determination. Some time prior to
the first day of July, this Company
filed such a suit in the United States
Circuit Court, setting forth in detail
what would be the effect OF the en-
forcement of the passenger rates
upon its revenue. Due notice was
given of a motion for an Injunction
pending the suit, and counsel selected
by the State appeared before the
| United States Circuit Court. After a
full hearing, and the presentation of
proof by affidavits, the court enter
ed an order directing that until final
determination of the cause the Com
pany might continue to charge for it's
passenger traffic what it had hereto
fore charged. In order, however, to
see to it that in the event it should
turn out that the twO-and-a-Quarter
cent rate Was a reasonable one, and
in order that the public should be in
no way harmed by the temporary
suspension OF this rate, the court
was careful to provide that there
should be attached to each ticket
sold a coupon which would represent
| the difference between the amount
collected in connection with the sale
of such ticket, and the amount calcu
lated at the two-and-a-quarter cents
per mile. 1t was further provided
that the railroad company should
give a bond with good security tC
pay into court such an amount O1
money as from time to time should
be necessary to make secure these
coupons. This bond was duly given
The effect of this arrangement is that
if it shall turn out in the final result
that the reduction to two and a quar-
ter cents per mile is reasonable anC
lawful, each one of the travelling pub
lie suffer no damage whatever. The
coupons representing the difference
as above explained, can be presented
- the court, and they will be pai(
out of the fund as above provided
Ii would be difficult to conceive OF al
arrangement which would be faire
to the public than this. In or 1e
that the litigation might not be de
layed, the court appointed a acomhlis
sioner to take proof, requiring hin
to report as early as the month o
September. Thus, if the matter il
allowed to take an orderly course
there is no reason why, within a yer,
few months, the whole matter cal
not be heard and determined by tn
Circuit Court, the public being full.
represented in the litigation and als'
being fully guarded against any pc
cuniary loss. 1t would seem to b
perfectly plain that if any individual
or corporation believed itself to b
in danger of a deprivation of it
property by legislation, it should b
allowed the privilege of having th
validity of the legislation deter
mined in an orderly method, and i
would seem to be perfectly fair to th,
public that a course OF procedur
should be taken which would, on th
one hand, protect the rights of th
person or corporation, and, on th
other, amply protect the public, il
the event that it should turn ou
that the legislation was valid. Suit
similar to these have been prOceede
with to final Judgment, and are noN
! pending in large number of State
| in the Union. In these instances n
| efforts were made by the State at
thorities to hamper or interfere wit
the orderly course Of judicial proceed
ure If ours is to be a governmen
of law, then surely no litigant shoul
be deprived of a fair opportunity {
going into the courts to protect hi
rights. The Southern Railway Com
pany is bound to protect its propel
| ty, not only in the interest OF it
owners and creditors, but also in tt