The Birmingham age-herald., 1907-08-28
Makes Important Ruling in Railroad Gases in the
 Federal Court
PUT ALL TIE ROADS
 ON THE SAME FOOTING
Louisville and Nashville and South and North Not Only Resisted the New Rate Law, But Increased
 Rates In March.

Montgomery. August 27.-(Special) )-The Louplsville and Nashville and the South anu North Alabama railroads must re- store the rates in the state that were n effect on January l. last. in accord ance with what Is known as the maxi mum rate bill passed by the last session of the legislature. This is the effect Of an order issued by Judge Thomas q, Jones of the United States court this afternoon. The rates must be put back by September 30, to what they were the first of the year, thereby placing the Louisville and Nashville and the South and North in the same boat with tha other lines of the state.
 When the order was issued last March restraining the operation of certain ststo laws none of the roads save the two mentioned resisted the act making the rates in effect on all roads on the first of the year the maximum rates for all time. These two not only resisted but raised rates on twenty-nlne articles Of building material and raw material and other products of like character so far as the Louisville and Nashville goes, and nineteen by the South and North. The state did not resist the injunctions against the other laws but did against this one. the result being that the rates will have to be restored. Judga Jones holding with the state
 l The two roads will now be on the same basis as the others with regard to the enjoined laws, save that they have an application pending that seeks to ex- lend the injunction to sheriffs and solici tors. All will now go in common cause to the end of the litigation and the determination of whether or not the rates are fair as put in by all of the bills. The judge holds that the assertion that the increases were necessary to prevent Inequalities and injustice is not a ques- ton to be determined on q preliminary injunction and better be left open 10 the final hearing. However. permission IS given communities to try certain rates as to their effect in injurious way and evidence will be left to the master.
 The bond of the Louisville and Nash vile upon which 1t may come in under the injunction granted all the roads is placed at $300000 and that of the South and North at Sl5O0OO
 The Opinion.
 The full text of the opinion follows: In the Circuit Court of the United States,
 for the Middle District of Alabama. Louisville and Nashville Railroad Co. st a.. vs. Railroad Commission of Ala bama. ct al.
 Jones, District Judge-This cause was submitted some time ago. motion for T preliminary injunction against the de- fendants to the original bill filed here in At that time, counsel for respond ents did not resist the preliminary lnJunc- ton against the enforcement of the statutes fixing the rates for the carriage of passengers and certain articles of freight. mentioned in what is known as the Commodity Rate Bill or the enforce ment of the statute which forfeited the right of complainants to do intra-state business they filed a suit in this court.
 Respondents did resist. however, any injunction protecting complainants in the use of rates which had been raised between January l, 1907, and Febru sry g. 1907. the date of approval of the act which made the freight rates in force on January l, 1907, the maximum rates thereafter The effect of this Legislation. taken fin connection with the other acts. was to make the rates in force on January l, 1907. the maximum. except wherein they were lowered as fixed in what is known as the com modity rate statute. Since the matter was submitted on motion for prelimi- nary injunction the respondents have filed an unsworn answer 10 the original bill It sufnces to say of the answer. so far as material to this hearing, that 1t is mainly mere traverse of the all legations of the original bill. a state ment of facts and arguments to meet an elaborate statement of facts brought forward in the same way in the bill. Outside of general denial. the only new matter brought forward by the an swer is that. in consequence of the statute forbidding free passes, of which complainant was in the habit of giving large number, that the reduced pas senger rate would produce as much in- come as compliments received under the Scent rate, and that the suit Is a suit against the state.
 Cites Decisions.
 That this Is not a suit against the state is now beyond the pale of con- troversy, having been settled by nu- merous and repeated decisions of the supreme court of the United States. Reagan vs. Trust company, 154 U. s. 362: Smyth Vs. Ames, 169 U. s. 466: Prout vs. Starr, 18S U. s. 537; Missis- sippi Railroad commission vs. Illinois Central Railroad company, 2O3 U. s. 34f.
 The court finds on examination of the rates increased above those in force on January 1, 1907, that nineteen of such increases were made by the South and North Alabama Railroad company, and twenty mine by the Louisville and Nashville Railroad company. These rates relate altogether to transporta- tion of building and construction ma terial to the coal and ore mines. and from stone auarries, and to material. such as coal. iron ore, limestone, etc.