The Birmingham age-herald., 1912-05-28
STATEMENT OF CASE.

On the 18th of March, 1907, complainants and 10 other railroad companies, seven of wl.ich shortly afterwards abandoned their contests because of a trade whereby the executive department of the state agreed to give them better rates, afterwards car red into effect by legislative and admin istratiye acts, filed their bills in the cir cult courts to enjoin, among other things, the enforcement of the several statutes of this state which prescribed 255 cents per mile as the maximum intrastate passen- ger rate, fixed the maximum intrastate rates for the transportation of no com- modities or articles of freight and made the rates in force on the first day Of January. 1901, the maximum intrastate freight rates. The statutes are assailed < ~-on the grounds that the rates prescribed are confiscatory; that they deny to eon- plainants the equal protection of the laws, in that the classification of the railroads, including those of companants, for rate making purposes, is purely arbitrary and urjusty discriminatory, and that the operation of the state rate statutes amounts to direct regulation by the state of interstate commerce. The hear ing for a preliminary injunction went over at the request of the respondents until the Sth of May, 1907, when a pre- lminary injunction was issued in all the cases the respondents offering no eyi- dence of any kind and stating in open
  from the orders, which, in the then pos ture of the cases, they admitted was in- evitable.-Seaboard Air Line Railroad company vs. Railroad Commission of Ala bama ct all. l55 Fed. 192.
 After these injunctions. an extra ses- sion of the legislature was called, De- tober g, 1907, to convene November 9th thereafter, to deal with such of the com blaming railroads, as at the time of the assembling of the legislature, should still Insist on their contests In the federal court. At the session so held the ll0 con. n.modites act was repealed, and in lieu of it a series of statutes were enacted liking freight charges. These acts were known as the Eight Group acts and were approved November 23, 1907. Thereupon the complanants in these cases filed sup elemental bills, attacking the new acts as unconstitutional on the same grounds as those urged against the original acts. On tie hearing for a preliminary inJunc- ton, on the proof submitted by the parties, the court being of opinion from the evil nence introduced, the most unfavor- able view which could be indulged against complainants, that it was manifest be- yond any doubt that the operation Of the reduced rates would be confiscatory, Is sued a preliminary injunction against the enforcement of these statutes, and some other statutes, since repealed or declared unconstitutional by the supreme court or this court, which were designed to destroy pr evade the jurisdiction of the court and 10 force the compainants who remained ln the court to abandon their contests Central of Georgia Railway Co. vs. Rail- road Commission, ct aL 16l Fed, 997.
 An appeal was taken to the circuit court of appeals which upheld the orders of this court regarding the statutes seek lng to undermine its jurisdiction and to punish complainants for invoking it, but
 tl.r,4 tl.1 Hence presented in the shape of ex parte anidaxits. m which manner both sides without hint of objection from either, submitted the question. did not so strong ly overcome the presumption indulged In favor of the reasonableness of rate statutes as 10 justify an injunction against the freight and passenger rates, before inc test of the rates by an actual trial. rhereupon complanants put the rates in force The cases were then referred to q special master to take and return the testimony ard report his conclusions on he facts. and he was afterwards directed 70 report his conclusions on the law The ,rcer of reference directed findings upon Il inquiries bearing upon every matter which could possibly throw light upon the value of complainants railroad and properties the amount of their inter and intrastate commerce, the value of the property devoted to each service. the net Anu gross incomes fectlNeu tneTelTOiIl, lle original cost and present value of the proper ties involved. the cost of duplicat- .ng it in it's condition at the time of the nquiry and the like. The investigations a,- sne,ial Master Thorington in these :ases. and by Special Master Gunter in
 rae cases lately decided in this aurt, have been as painstaking and skill .i.i, ana nave covered wider range and ,ten more exhaustive and deliberate. per- ,aps, than in any prior rate investiga- ion. These cases are now submitted foc final decree upon the masters report and i,c evidence returned by him, in conjunc- don with the several exceptions to his lndirgs.
 Lawton X Cunningham of Savannah. sa, R. F. Steiner. and Steiner Crum & l Nell of Montgomery. Ala, for the Cen rai.o of Georgia railway.
 R.. E. Steiner and Steiner, Crum ( Nell of Montgomery. Ala, for the Vest rn of Alabame railway
 Robert .. Bftckei, attorney general. of GontUomery, Ala, Samuel D. Weakley