CIRCUIT COURT OF THE UNITED STATES.

EASTERN DISTRICT OF KENTUCKY.

AT FRANKFORT.

LOUISVILLE ANd Nashville RAILROAD Co., Complainant,

VS.

CHARLES C. MCCHORD, ADAM T. SILER AND MCDOUGAL FERGUSON, INDIVIDUALLY, AND AS CONSTITUTING THE RAILROAD COMMISSION OF THE State of KenTUCKY, Defendants.

The complainant moved the court to grant to it a preliminary writ of injunction in accordance with the prayer of the bill of complaint, and said motion is now fixed for hearing on the 24th day of September, 1906, at 11 o'clock a. m., in the court room in the city of Frankfort, Kentucky; and it having been made to appear that there is danger of irreparable injury being caused complainant before the hearing of said· application for the writ of injunction, unless the said defendants are, pending said hearing, restrained as therein set forth, it is now ordered that a restraining order be granted and that the said Charles C. McChord, Adam T. Siler and McDougal Ferguson, individually, and as constituting the Railroad Commission of the State of Kentucky, are restrained and enjoined from continuing or putting into force and effect their order of June 20, 1906, promulgated July 19 or July 20, 1906, reducing the railroad rates of the complainant on intrastate freight between points within the State of Kentucky, or putting into force and effect the schedule of maximum rates prepared or promulgated thereunder so far as such rates relate to the railroad of the complainant ; and also are restrained and enjoined, individually, and jointly as constituting said Railroad Commission, from recommending or causing to be instituted any prosecution by indictment, or other legal proceeding, against the complainant or any of its officers, agents or employes, to recover any fine or penalty imposed by Section 820-A of the Kentucky Statutes, commonly known as the McChord Act, or upon any cause of action or ground whatever, for on account of complainant's failure or refusal to put into force and effect the Railroad Commisian's order aforesaid, or the rates fixed in the schedule of maximum

rates prepared thereunder, until the hearing upon the said application for writ of injunction and the further order of the court in the premises. Leave is granted to the defendants to apply for an earlier hearing of said motion if they so desire.

A true and complete copy of the restraining order entered in the cause therein styled, on July 26, 1906.

Attest:

W. G. CHAPMAN,

Clerk.

CHARLES C. MCCHORD, ADAM T. SILER AND MCDOUGAL
FERGUSON, INDIVIDUALLY, AND AS CONSTITUTING
THE RAILROAD COMMISSION OF THE State of Ken-
TUCKY,

Defendants.

To the Honorable Judges of the Circuit Court of the United States for the Eastern Judicial District of Kentucky:

The defendants, Charles C. McChord, Adam T. Siler and McDougal Ferguson, individually, and as constituting the Railroad Commission of the State of Kentucky respectively, now and at all times hereafter saving to themselves all, and all manner of benefit or advantage of exception or otherwise that can or may be had or taken. to the fallacious arguments, the many errors, uncertainties and imperfections in complainant's bill of complaint contained, for answer thereto, or so much thereof as these defendants are advised it is material or necessary for them to make answer to, jointly and severally answering, say:

I.

Defendants admit that complainant, the Louisville & Nashville Railroad Company, was originally incorporated and organized under an act of the General Assembly of the Commonwealth of Kentucky, and that thereafter various amendments to said charter were granted by said General Assembly. As to the character of said amendments and the full extent of the powers thereby conferred, these defendants, nor either of them, have not knowledge or information sufficient to enable them to form a belief, except as hereinafter set out, but, for greater certainty, defendants crave leave to refer to the said charter and amendments thereto when produced. Defendants deny that by said

charter or any amendment thereto, approved January 17, 1856, or at any other time complainant was authorized to purchase and hold any railroad constructed by any other company. Defendants admit that complainant owns, controls, or operates the lines and number of miles of railroad set forth in Paragraph I of its said bill of complaint. Defendants admit that complainant carries, and has for many years carried large traffic over its lines located in Kentucky, both freight and passenger, and both intrastate and interstate, but they deny that about seventy per cent of such traffic transported over complainant's line in Kentucky in the fiscal year ended June 30, 1905, in prior years, or since, was strictly, or at all, interstate traffic, or that the rates upon such traffic have a direct or vital connection with the rates on interstate traffic, or a far-reaching effect or influence, or any effect or influence upon commerce between the several States.

II.

Defendants deny that there is or ever was a valid or other contract which still subsists, or ever subsisted, between the Commonwealth of Kentucky and complainant, whereby complainant was or is authorized to charge or collect on the railroad owned or leased or operated by it within said Commonwealth of Kentucky, rates for the transportation of freight and passengers not exceeding the following rates, or any other rates, to-wit:

For every one hundred pounds transported over twenty miles and under fifty miles, three and one-half (31⁄2) mills for each mile; for all other transportation of freight and property, not exceeding four (4) mills for each mile per hundred pounds; for transporting single packages any distance weighing not less than one hundred pounds, twentyfive (25) cents; for transporting live stock, poultry, furniture, feathers, wool, rags, and other like light bulky articles, weighing not more. than sixty-five (65) pounds to the cubic foot, not exceeding fifteen (15) per cent above the rates allowed to be charged for heavy merchandise, or that gold, silver, bullion, money of all kinds, and mails, are excepted from the rates established in its said charter, or that complainant's board of directors is thereby authorized to contract especially therefor. They deny that for the transportation of passengers complainant is authorized to charge not exceeding four (4) cents per mile for each passenger with his baggage, weighing not more than forty (40) pounds.