The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1922-01-20
RESIDENT ILLINOIS GEN.
TRIAL ADDRESSES LETTER
TO PEOPLE OF MISSISSIPPI

Reproduced herewith is a copy O.
an open letter which | am addressin2
to the people of Mississippi. Know
ing that each of you will be interest
ed in this situation, | am taking thi
means of laying the statement before
you.
C. H, MARKHAM,
January 9, 1922.
To The People of Mississippi:
My attention has recently been di
rected to an address delivered by
Honorable B. E. Eaton of Gulfport
before the Mississippi Bankers Asso
citation, in which Mr.. Eaton, among
other things, discussed some reasons
why Mississippi has not enjoyed the
growth to which it's material resources
justly entitled it in the field of com
merce and industry.
was naturally very much interest
ed in the splendid address of Mr..
Eaton, not only by reason of the
fact that am president of two rail-
way corporations having 1893 miles
of railroad in the State of Mississippi,
paying taxes amounting to more than
two million dollars, and therefore
representing by far the greatest single
investment in the State of Mississippi,
but also by reason Of my personal in
terest in the State Of Mississippi,
growing out of my close contact with
its people, it's problems and its in
dustrial possibilities. / think l may
safely say, therefore, that / am in
tensely interested in all public ques-
tions that affect the welfare of the
state, the stability of investments, and
any public policies that may be detri-
mental to the states interests.
Among matters not mentioned by
Mr.. Eaton, but which seem to me to
be pertinent to consider, is the policy
of the state as manifested in the
suits now pending against the Illinois
Central Railroad Company and the
Yazoo & Mississippi Valley Railroad
Company, wherein it is sought not
only to disrupt the organization of
these companies, but also to collect
enormous penalties, amounting to the
sum of $14O,OOO,O0O.
/ think it not amiss to call the at
tention of the people of Mississippi to
some of the outstanding features of
this litigation, and particularly those
aspects which seem to me to do a
great injustice not only to these COM
panies but to the good name of the
state of Mississippi.
The Illinois Central Railroad has
been operating in Mississippi since
1882. 1t was granted permission to
do business in Mississippi by an act
of the legislature. The Yazoo &
Valley Railroad was form
ed in 1892 by the consolidation of the
New Orleans & Texas Rail-
road and the old Yazoo & Mississippi
Valley Railroad, both these compan-
les having been organized under acts
of the Legislature of Mississippi,
which expressly authorized their con-
The State of Mississippi
has recognized the legality of this
by bringing suit on
December 7, 1898, through a former
revenue agent, against these COM
panies for back taxes, based on the
fundamental contention that a new
company had been formed by the
which new company
had lost the exemptions from taxa
ton carried in the charters of the
companies. The conten-
ion of the state was sustained by
the courts, and price Of such con-
these companies were re-
1uired to pay to the State of Mlssls-
;ippi more than $1,OOO,OOO, a sum
which could not have been properly
assessed against the consolidated
company if the consolidation mao
,een illegal, and therefore null and
void. 1t seems to me too clear Tor
that the State of Mississlp-
ii is therefore ethically, If not legally,
stopped from contending that the
was not legal, IN view
# the enormous sum which the new
paid solely upon the
round that a legal consolidation had
,een effected. Clearly, if the con-
olidation was contrary to the law, no
lew corporation was in fact formed,
md the exemptions from taxation
arried in the original charters would
,e effectual.
So far as the question of owner
hip of stock by the Illinois Central
$ concerned, if anyone will take the
rouble to glance at the answer filed
" our companies in this pending suit
nd will examine the legislative acts |
herein referred to, / think it Will be
greed that nothing has been done
n Mississippi which was not express
v sanctioned by an act of the legis-
ature. For practically forty years
ye have been doing business in Mis-
issippi, paying our taxes, obeylng
our laws, and giving to the state the
est service which we could, resting
ontent upon the obligation of the
tate as expressed in it's legislative
cts to respect its solemn declarations.
Jnder these circumstances it seems to
,e that the suit against our com
anies represents an effort on the
art of the state to repudiate its
romises, acts and obligations, pre-
.nting a case quite as striking. as any
those referred to by Mr.. Eaton.
Aside from the question OF good
aith. I cannot conceive Of any wise
ublic policy which can be promoted
y this suit. The Illinois Central
abroad, on account of its interest In
le Yazoo & Mississippi Valley, has :
nee 1892, spent vast sums OF money
the way Of advances to the Yazoo
Mississippi Valley in extending It's
nes and improving its service. In