Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-03
BARS SOUTHERN RAILWAY
LICENSE TO DO BUSINESS IN
ALABAMA IS REVOKED.
The Removal Of a Case From a State
to Federal Court Reason
Alleged.

MONTGOMERY. Ala. August 3-The
license OF the southern railway To 90 bust
ness in the state OF Alabama has been re-
voked by Secretary OF State Frank NJ
Julian. who has caused to he entered upon
the stub OF the license in the records OF his
offtce, the statement that for violating
Senate bill No. So. approved March 1907
and effective July. Just passed. the said
Southern railway has been deprived of its
right to do business in the state.
The action OF the secretary OF state Is
not In resistance 10 restraining orders Is
sued by the United States court OF the ffth
circuit. 1t Is said. as this law is not among
those combated by the railroads and is not
included In any OF the litigation now pend
ing In the court OF Judge Thomas G. Jones
of the middle Alabama district: hence the
situation is not that of conflict of the state
and the federal tribunals.
Cause Of Revocation.
The complaint upon which the revocation
was made came from the circuit court of
Taltadega county in the shape of a notifica-
ton from Clerk J. ID. McNeeI that suit
had been removed from the state court to
the federal court
The act requires that after July 1 every
foreign corporation shall pay a license OF
xlO year, that the secretary Of state
shall Keep a complete record of moneys
collected and that It will be unlawful for
any corporation TO do business In the
state without paying this license.
Section 4 provides that when any foreign
corporation is sued in state court and
removes such suit from the state to a
federal court the clerk OF the court from
which the removal is made will at once
certify such action to the secretary of
state. who shall thereupon Immediately
cancel said license and make and enter
upon the stub thereof an order In sub
stance:
This license will be cancelled for vio-
lation OF the act under which issued by
the removal OF civil cause from the court
OF this state to the federal court"
This shall be evidence of revocation OF
the license In any court OF the state. II
also says that after such revocation ANY
contract agreement engagement or under
taking with or by or to such corporation
shall be utterly null and void
Extra Session Of Legislature.
1t is not unlikely that the federal court
may get into the row even II contempt pro-
ceedings are not brought. 1t may hold that
the act is in spirit a re-enactment OF the
revocation bill that Judge Thomas @.
Jones has declared to be illegal.
The effect would be to deprive the South
ern railway OF the right of doing business
in the state, q thing that was contemplated
II the other revocation act had been allow
ed to stand
An extra session of the legislature will
be held in the fall to adopt more stringent
railroad regulation laws to meet the situa-
ton created by the various rate regulation
laws being enjoined in the federal courts.
The Southern railway owns more than
1900 miles OF road in Alabama and millions
of dollars worth OF property.
NEW YORK, August 3-President Finley
of the Southern railway. who was at the
railroads New York Offices at 20 Broadway,
said yesterday afternoon that he was being
advised about the situation in Alabama, but
did not care to say anything about the mat
ter as yet II was possible. he said. that
he would give out some sort Of a statement
today setting forth the Southern's side Of
the question.
Mr. Finley was asked IL he had antici-
pated any such move as the state authori-
In reply he declared he did not wish to say
what he had or had not anticipated.
In Wall street the agitation against the
railroads that shows its latest manifesto
ways license In Alabama Is regarded moro
as a political boomerang than anything
else The political side of 1t is thought to
obscure the other side. which breeds hesIta-
ton in the investing public and discourage
ment In the market
Inasmuch as sentiment plays 4 large part
in the securities market an action such as
that OF the Alabama administration, no
less than that of Gov. Glenn in North Caro-
lna Is said to be well calculated to revive
dstrust In the securities market and undo
all that has been done to restore public con-
1dence since March. 1t IL generally be-
leved, however. that the street chooses to
regard Alabamas action amusing. q
piece of political blum that will shortly be
called by the federal courts. Wall street
seems to be confident that the cancellation
Of the Southern's license in Alabama will
be Immediately exposed as frivolous.