The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1907-08-18

Gregory l.. Smith of Mobile, district
s. ,ornsal for the l.. & n. railroad, has
issued a public statement anent the
rs resistance of the rate laws
tentatively accepted by the Southern,
-1a Frisco and the Mobile and Ohio.
n Smith asserts that lit is not the
mention OF the company to violate
The law; that it has appealed to the
law ~ protect itself from what seems
rnfair demands. and holds that every
person. natural or artificial, has
right 10 test any law, the validity Of
4 which injuriously affects his or its
interests, by proceedings in a proper
j court
The full statement follows:
The position taken by the Louis
vile and Nashville Railroad Com
pany in what is commonly known as
the rate cases seems TO have been
greatly misunderstood.
The railroad has frequently been
referred 10 as refusing to obey the
laws of Alabama, and as attempting
10 deny the sovereignty of the state
This is an entire misunderstanding
Of its position. The enforcement Of
the acts. the validity of which is being
attacked, will necessarily result in an
enormous loss of revenue to the rail-
road II the acts are not valid the
railroad does not wish to submit to
this, and ought not to be required TO
do so. If the acts are held to be
valid, the railroad will not attempt
10 evade their provisions. and will. as
i, should do obey the laws without
any evasion or equvOcatiOn, and will
make good to every passenger and
shipper any excess of charge over the
rates prescribed by statute that it
may have made pending the litiga-
ton.
Right to Test Law.
Every person. natural or artificial!
has a right 10 test as:y law, the valid
iry of which injuriOusly affects his OF
lis interest by proceedings in prop
Cr court, and this is all that the Louis
Vile and Nashville Railroad Com
pany is doing.
When q law so affects property in
terests that, if enforced during the
litigation necessary to test its valid
ity. serious loss will be sustained
should the law be held to be invalid
The enforcement or that law during
the litigation is generally enjOined
and the party obtaining the injunc
lion is required to give bond to pro
tee, all other parties in interest
against loss or damage, should the
law he declared valid. This is a com
mon and familiar practice which is in
dulged in by individuals, and every
1iTTn6
proper. and in this case the railroad
company has been required to give
and has given ample security to re
fund TO every person, should the laws
10 held valid, every overcharge il
may make during the litigation.
The Matter of a Bond.
If the defendants could be required
10 give the railroad similar bond
10 pay it for any loss of revenue If
the law should be held void there
would be no necessity for or justice
IN allowing the railroad to charge
rates in excess of those provided by
NE stdtUte while the case is pending,
Out this cannot be done, and If the
railroads. were to charge only the
rates prescribed by the acts, and
those acts were afterwards to be held
To be VOID the road would be without
remedy for the loss it sustained while
me suit was pending. Independent
VI any statutory regulation, this prac'
uce OF enjOining the enforcement OF
rates established by law has been
frequently INDUCED in cases exactly
IKE ,hat now pending, and has been
frequently upheld by the supreme
.oHTl of The United States. This
!ac' was fully recognized by the at
w,AeyS employed by the governor to
rel'Nd Ibis suit; they have admitted
u'S IN open court, upon the hearing
:. The motion for the original re-
S"dln.nE order of this case.
Legislative Precedent.
Ihe legislature. in passing these
avs was evidently familiar with
.-S practice, and had no intention
Qes!re to abrogate 1t; on the con
s ra'F' X evidently recognized the fair
-SSS and justice of the rule, for II
s.W!deC by more than one of the
1-S IN controversy for testing, In a
ttIopeF court, the reasonableness and
-AesS OF the rates fixed by the law
- - LOT the suspension of such rates
ne the test Of the reasonableness
80 IdlrneSs of the laws is being made
81 e.. me suspension by the United
FN court of the rates established
4 =, me laws is supported by the pro-
s.S''hS OF these very laws them
'es, as well as upon general equity
.,,"clp-eS. AS the proceedings them
nSHes are justified and supported by
provisions Of the laws of Alabama