Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-04-09
ALABAMA WINS
BIG RATE CASE
FIRST IN SERIES OF SUITS
AGAINST RAILROADS is DE-
CIDED BY CIRCUIT COURT OF
APPEALS.

NEW ORLEANS, La. April Sin the
limited States circuit court of appeals to-
day, the injunction ordered by Judge
Thomas G.. Jones, in the United States
district court at Montgomery, Ala, re-
straining the state railroad commission
from putting certain rates into effect, was
dissolved The opinion of the circuit court
of appeals was concurred in by Justices
Shelby and Mccormick, Justice Pardee
dissenting.
The litigation grew out of the enact
ment of certain laws at the regular and
extra sessions of the Alabama legisla-
ture in 1907. which provided for max
imum passenger rate of IL cents mile
and a material reduction of freight rates
on railroads within the state of Alabama
The railroads attacking these statutes
were the Western Railway Of Alabama,
Central of Georgia Railway company,
South and North Alabama Railroad
company, Nashville, Chattanooga and ST.
Louis railway, and Louisville and Nash
Vile Railroad company.
Bills were filed to reserain the enforce
ment Of these proposed rates, upon the
claim that they were confiscatory Ia
their effect upon the property of the
railroad companies and also that the stat
utes denied the railroad companies the
equal protection of the law. The COM
plant was also made Of certain pro-
visions of the acts which made the charg-
ing of a higher rate or fare than that
prescribed a misdemeanor, and imposed
upon any officer, agent or employe of
railroad who violated the provisions OF
the acts, a penalty of fine and impris-
onment.
A decree was obtained from Judge
Jones, of the United States district court
at Montgomery, which was sweeping In
its effect. BY it's terms the proposed
rates were superseded and suspended UNI
til the final determination of the cause,
and "All shippers or consignees Of
freight and all passengers and persons"
were restrained from instituting any suits
against the roads, either in their own
name or in the name of the state OF
Alabama. for the recovery of any fines or
penalties on account of refusal to comply
with the provisions of the act.
It was further ordered that all prose-
cutting attorneys be restrained from in
stituting any criminal proceedings against
the roads for alleged violations under the
terms of these statutes. The clerks Of
the courts of the various counties were
restrained from performing any official
duties in reference to any suit that might
be brought against the railroads. and
sheriffs from making any arrests in this
Finally the injunction forbade the rail-
road commission of Alabama From max
ing any order, as such commission, re-
ducing any freight or passenger rate OF
the roads of complainants at less than
compIainants' rate for the same existing
at the commencement of the suit on
March Is, 1907
This decree OF the United States court
provoked a storm of disapproval among
the state officials of Alabama, and a clash
between state and federal authorities was
threatened. This, however, was averted,
and the state took an appeal from the de-
cree of Judge Jones, which remained in
the meantime in full force and effect. II
was on this appeal that the circuit court
of appeals here acted today. ,-s.
The court put itself on record as IA
voring an appeal to state courts as
first recourse, and exressed regret that
an opportunity had not been given the
state supreme court of Alabama to pass
upon the laws enacted by the Alabama
legislature.
The effect of today's decision will be
to remand the case to the lower court at
Montgomery for further proceedings