The Birmingham age-herald., 1909-05-19
Railroad Case Three Years Old
 Still Pending
IS ALMOST FORGOTTEN
Four Railroads of the State Were Re classified and Passenger Rates Put In Force But Fight Made on
 Freight Rates.

l Is an important litigation concerning freight rates in Georgia pending in the United States court which has appar- ently been forgotten.
 For time there wasn't much talked about under the generic head of rates but Circular No. 816, issued by the state railroad commission.
 Now if one were to mention Clrcu- lar No. 316 anywhere but in the office of one of the interested railroad law yers, or to members of the commits sion themselves the only reply would be look of blank mystilcation There have been other rate matters to think and talk about-port rates for instance-and circular S16 has been per mitted to slumber.
 Of course, if the state should return to the fight, the would be immediate wakefulness and exceeding activity on the part of the railroads, but there | seems no early prospect of it. Whether circular 916 is dead or just slumbering, is one of those things diff l fcult to predict.
 What Circular 316 Is.
 There was hue and cry raised about rates in Georgia before the campaign of 1906-07 was seriously thought of
 The old railroad commission, com posed then of three members, went into many phases of the matter. l To make long story short the com mission decided that the local rates in Georgia were to ohigh; that there should be some material reduction, par ticularly on the big railroad systems which were then enjoying unusual prosperity.
 As result of investigations along | this line circular S16, and following numbers, were issued "reclassifying" four of the large railroad systems in | the state.
 The railroads of Georgia are divided into classes A, B. c and D, the classes determining the local rates which they are allowed to charge. The class A roads are permitted to charge only the rates prescribed in the railroad com missions standard tariff. Classes B. c and D are permitted to add pro- gressive percentage to the standard tariff, the percentage varying with the class.
 Now these circulars, issued on Jan uary 20, 1906, after a full investiga- | tion by the railroad commission, re- classified the Central of Georgia, the Southern railway and the Seaboard Air Line by transferring them from class l c to class B. and the Atlantic Coast Line by transferring it from class to a class of its own half way between l B and A.
 Effect of the Circular |. l The effect of these circulars was to reduce the local rates of freight on all the lines affected about 10 per cent, perhaps a little bit more.
 It did not in anywise affect rates to competitive points which are governed more or less by the competition and which are as a rule below the stan dard tariff rates.
 The only rates affected were those to purely local points where there is no benefit from competition, and where the only chance for shippers to secure re- auctions Is through some such action on the part of the commission or by voluntary action upon the part of the railroads. Naturally they profit very little from the latter instrumentality.
 Were at Once Enjoined.
 The railroads involved went at once into the United States court in Atlanta and secured injunctions preventing the enforcement of these circulars.
 The railroads contended that the or ders were violative of the federal con stitution on the ground that they con sttuted in effect, confiscation of pri- vate property.
 The Central of Georgia showed that the effect of the circular, 316, so far as it was concerned would be to de- prive it of revenue. at that time to the extent of $S3,71S.22 annually.
 Similar showing as to the amount involved was made by the other roads,
 Auditor is Appointed.
 Following brief hearing in court, Judge Newman appointed Attorney George L. Bell of Atlanta as auditor in the case
 Nearly two years ago there was a hear ing before Auditor Bell and the railroad company presented testimony for three days to support its contentious It brought here several rate experts and it's side of the case was fully presented.
 There the matter dropped and appar- ently it is as flat today as when it fell.
 Why Was 1t Dropped?
 This re-classifcation case was called to mind the other day in connection with the port rate hearing before the com mission.
 It was also recalled that these cir culars ordering reconsideration and con- sequent reduction In local rates were cited in the petitions for injunction agalnst the reduced passenger rates as reasons why the latter should not be enforced. It was urged that both would be too great a curtailment of railroad revenues
 The reduced passenger rates, however, were put into effect while circular 316 ct al. continued to hang fire.
 The question was naturally asked why this litigation has not been pressed
 It was bequeathed by the Terrell ad- ministration under which the circulars were issued to the administration of Gov ernor Smith, but for some reason Gov ernor Smith and the present railroad commission have not seen fit to press it.
 Couldn't Get the Evidence.
 Inquiry develops the statement in cer- tain official quarters that this litigation was dropped because the state found 1t practically impossible to get the evidence it needed to make out good case.
 After the railroads had put in practice ally all the evidence before Auditor Bell and the further hearing was adjourned subject to agreement between the parties intrested, the state began to look around for a time to see if 1t could locate an expert whom it could put on the stand.
 The finding of an expert to give tes- timony, in effect. against the railroads, appears to have been an impossible task.
 Then came the financial panic and whne the bottom dropped out of finances it also fell out of efforts to secure lower