The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-05-31
THE RAILWAY RATE CASE

the ACT Oh Legislature
Rates.
Judge Pritchard, in the United States
circuit court yesterday, on the motion
Of Messrs. William A. Glasgow, Jr.,
and George Rountree. solicitors for
compartments, granted an order re-
straining the Atlantic Coast Line Rail
road Company and its president and
directors from putting into effect, and
restraining the North Carolina CorpO-
ration Commission ard attorney gem
eral from publishing OF in any way at
tempting to compel the Atlantic Coast
Line Railroad Company TO put into eff
feet passenger and freight rates as
prescribed by the recent acts Of the
North Carolina Legislature. The COM
p%lainants are r. Nielsen Buckley, Geo.
T. Pearson, Lewis H. Adler, w.
Welsh Harrison, Jr., Clement 3. Pen
rose and r. A. F. Penrose, who are
Line Railroad Company, and reside in
Philadelphia.
The bill in equity prays for an in
junction against the railroad commits
sioners of North Carolina from pub
fishing and enforcing the recent rates
provided by the act Of the legislature
OF North Carolina. It alleges that the
company refuses to contest the rate
bill on account Of the extreme penal
ties provided by the rate bill which
mould orrrnoratn - n n n,S1lf@- AL
lars a day of five hundred and eighty
six million dollars IN case rates were
finally sustained by the higher courts.
The bill alleges hat d committee Of
stockholders have applied to the Cor
pOration itself to protect their inter-
ests and it has declined to do so; and
further alleges that they have put
themselves squarely within Equity
Rule "a of the supreme court covering
such cases. The poiut is also made
that the rate bill was not read three
several times and not signed by the
speaker of the souse, a rubber stamp
being substituted in lieu thereof. The
further interesting point is raised
which is similar to the one raised in
Virginia rate cases, towit: that the
power conferred upon the corporation
commission of North Carolina to fix
just and reasonable rates is a judicial
function and while the commission
exists with such power in the
Legislature cannot interfere and un-
dertake to exercise what under the pol
icy of North Carolina n a judicial func
ton
This case will be heard alsngwith
other cases before Judge Pritchard on
the Goth and 9th of June, when an
array Of the best known lawyers in
the country will be present, represent
ing a dozen or more railroads. Be-
yond a doubt the decision in the cases
pending before Judge Pritchard will
involve more money than any cases
before heard or tried by any court in
this country.
Mr.. George Rountree, when seen by
q Citizen representative, said:
1.-THE compliments brought the ac-
ton against the railroad company be-
LA6 oAlNCl0 ~ CIuoO
to do SO and the action is brought in
behalf Of the compliments and all
other stockholders similarly situated.
It seems that shortly after the adjourn
ment Of the legislature the board of d.
rectors Of the railroad company con-
sidered the acts reducing passenger
and freight rates and believing them to
be unjust, unreasonable and much too
low to enable the company to obtain
just compensation for the use of the
capital invested in local business in
this state, determined to REFUGE t put
On rates and directed the office to
the question in the courts.
Subsequently the counsel Of the rail-
road company advised the officers
that owing to the enormous penalties
which might be incurred, amounting
to possibly one million six hundred
thousand dollars a day, for failure to
put into effect the passenger rate alone
it was a dangerous risk for the COM
pany to fail to do so. and might mean
ruin if the acts We're upheld, although
In MS opinion the acts were UNJUST
and confiscatory.
"A committee of stockholders appear
ed before the board of directors with
their counsel, Mr.. Glasgow, and urged
them to refuse to put the rates into
effect and contest the matter in the
courts. After hearing the committee
and it's counsel and Ieconsidering the
whole matter the board declined to
comply with the request of the stock
holders, whereupon the compliments
brought this bill to test in an orderly
and proper the question at is
sue.
"It ought to be thoroughly under,
stood hat the rights of the public
patrons of the company-are to be
carefully safeguarded, as the prayer OF