The Birmingham age-herald., 1911-10-25
FREIGHT RATES
 BEING DISCUSSED
Struggle Between State and Corporation Is LoOm-
 ing Up

Atlanta, October 24.-An interesting struggle between state and corporation is just taking shape-the effort to re- qutre the Nashville. Chattanooga and St
 Louis railroad, as lessee of the Western and Atlantic, to haul freight between Georgia points and Chattanooga, at the same rates 1t charges for hauling similar freight between points entirely within the state.
 The railroad commission and Governor uoke Smith hold that the lessee eom- terms of the lease: the lessee company helds that the lease makes no such spe- cihc requirement, and that if it did 1t would be void, because it would be in vio- laton of the commerce clause of the con- stitution of the United States.
 Here is where the state and the rail- road company are going to hitch-upon the question as to whether the state has the right to control it's own property and to lease it upon such terms as it sees fit regardless of the general laws and regu- lations made by the United States govern ment under the constitutional commerce clause.
 Governor Smiths recent letter addressed to tho Western and Atlantic Railroad company, demanding that it conform to the ruling of the state railroad commits sion, under which the road was placed in Class A, Georgia standard tariff, is mere ly the first formal step in the proceeding.
 Of course, the railroad company is now conforming to that order in so far as traffic wholly within the state is con cerned it is in the case of interstate hauls, to and from Chattanooga, that it IS not conforming.
 Probably the railroad company's answer wnich Governor Smith has asked for by November l will state that the company is conforming to the commisson's order, and proposes to cdtltinue to do so and tEat 1t will then continue to stand upon us rights under the interstate commerce law in so far as interstate transporaion is concerned.
 What Governor Smith is driving at, of course, is the interstate end of the busi- ness, and his effort is directed toward forcing the road to lower it's interstate rates between Georgia points and Chat tanooga.
 Naturally, the substance and effect of the railroad companys reply will be a refusal, a polite one, perhaps, to accede lU the ueI1ldnOS or lUt EldtCs III IdGlt dl- torneys for the railroad company have already signified as much in their pre- sentation of the case before Governor Smith and members of the railroad com mission some time since.
 The question then is as to what the state will do. Governor Smith has sev- eral courses open, and no matter which one of them he takes he will leave an in teresting legacy for his successor.
 srt,+ abrogated which would put the lessee company on the defensive, and compel it to go to court to maintain it's right to the lease. Of course the lessee company would seek an injunction in the United States court and the fight would be con ducted there.
 on the other hand; the governor might instruct the attorney general to bring suit in the state courts against the les vided in case corporation, subject to it's jurisdiction. violates a rule or order of the railroad commission. Under the law this penalty is cumulative, and may be applied and sued for in every case of vio- latlon.
 It is possible the company might get the suit transferred to the United States court, both on the ground of citizenship and on that of the federal constitutional question alleged to be involved | The chances are all in favor of it's going | to the United States court, where 1t
 might possibly be tied up for the re- mainng nine years of the lease, or at least a good part of that time. l on the other hand it is more than like 1 ly that the Nashville, Chattanooga and St. Louis will make every effort to se- cure the lease of the Western and Atlantic l again at the conclusion of its present contract in 1920, and it will naturally want to be in the good eraces of the state | Tn any event. therefore it is expected
 that the contest if determined one will be more or less of a friendly nature