Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-07-25
Governor Smith Win Take Up
Alleged Violation on Freight
Rates Between Atlanta and
Chattanooga
TO CONFER WITH HINES
AND ATT0RNSY GENERAL
Files in Railroad Commission
Office Show How Governor
Brown, in Possession of the
Facts, Would Not Act


It is understood that Gov Hoke srnithI
Is investigating the alleged violation. OF
the states Western and Atlantic leasing
contract by the Nashville. Chattaneoga
and ST. Louis railroad. and that he win
call Attorney General Fielder and Special
Attorney Hines. of the railroad commits
sion, into an early conference on the
subject.
This conference will probably be fo1@
lowed without delay by some definite an
nouncement from the executive ofice,l
and by whatever action Is deemed wise
by Governor Smith after he has Looked
fully into the situation
The record Of Gov. Joseph M. Browns
connection with the case, involving his
delay of over six months in giving the
matter any final direction whatever. and.
his eventual decIination. two days before
his term OF ONCE expired to take any
action whatever. despite the findings OF
the railroad commission, the opinion OF
the then attorney general and the rail-
road commissions special attorney was
an absorbing topic of conversation at
the capitol Monday morning, and tbs Of
fees of the railroad commission were
visited by number OF interested people,.
anxious to learn from the record there. II
possible. what justification Governor.
Brown had made of his attitude. The
file, containing all the documents aud
correspondence in the case was avafl1
able. and leaves no doubt of the pre-
else situation
THE FORMAL RECORD.
The Atlanta Freight Bureau COMPLAINS
ed to the railroad commission that the
leasing company Of the Western ard
Atlantic railroad was exacting a grsater
charge per ton on several kinds or
through freight between Atlanta and
Chattanooga over the Western and At
lantic rails. than It had any right e
charge
The railroad commission held thai IL
had no authority to TX or enforce rates
between Atlanta and Chattanoogs. on
through. interstate freight. but point~
ed to the clause In the business Contract
between the state Of Georgia and tbs
leasing company which specifically says
| that the leasing company shall cirzrgs
no greater rate per ton per miIss on
through freight on said railroad than
the local rate allowed and fixed on SINH
lar freighIs by the railroad commission
for said railroad.
/ The commission, therefore, turned the
matter over to the executive Office ex-
pressing the belief that the leasing com1
pany was violating the terms OF its con-
EOV1EuUET
and not the railroad commission Il, en-
force that contract Subsequently zlttor-
ney General Hewlett Hall and Special
Attorney Hines, both expressed the view
that it devolved upon the governor to
see that the contract was enforced.
The matter came to Governor Browns
attention. the file shows. in December
1910. and while further correspondence
passed on the subject in the interim, the
fact stands proven by the record, that
Governor Brown made no disposition of
the matter until June q. 1911, two days
before his term OF office expired. when
he sent a written opinion to the COM
mission In which he declined to take any
action on the complaint.
MR.. BROWNS REASONS.
In his opinion, Governor Brown raised
questions that had previously been dis
posed OF In the same file. He based
his refusal to act on the ground that
the leasing company had not violated
its lease contract, and advanced this arr
gument:
sIt is conceded by your honorable
body Cthe railroad commission that you
have not power TO fix directly a tariH
rate on commodities moving between
Chattanooga and Atlanta. IL your hon-
orable body is without power to directly
fix such rates between the points nsLmeds
can the same be accomplished by indi@
rection? 1t would seem not.
Then, in his conclusion-and this IL his
final letter on the subject. Governor
Brown said:
Until 1t is shown that some legal and
obligatory local rate has been fixed b.
the railroad commission between 4Atlan7
ia and Chattanooga, and that the rate
per ton per mile on through freight
charged by the leasing company Is great
er than the local rate 50 fixed on tho
said railroad between the points nanaed}
then 1t would seem that no case has
been made out against the leasing CONF
pany showing violation of the terms OF
contract"
Now, this same file shows letter from
Chairman H. Warner Hill. OF the rail-
road commission, to Governor Brown
bearing the prior date of January 9.
1911 in which he plainly explained that
the railroad commission never had en-
tertained any idea that 1t could direct
" o. indirectly fix the rates on through
freight between Chattanooga and ATTAIN
ia II being interstate commerce, and
that the commission had not taken any
action for that very reason, but had
turned the matter over to Governor
Brown on the very different ground that
the charges of which the Atlanta freight
bureau complained We're violation by
the leasing company of the business
contract with the state of Georgia