Memphis News Pub. Co. v. Southern Ry. Co.

110 Tenn. 684
CourtTennessee Supreme Court
DecidedApril 15, 1903
StatusPublished
Cited by4 cases

This text of 110 Tenn. 684 (Memphis News Pub. Co. v. Southern Ry. Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Memphis News Pub. Co. v. Southern Ry. Co., 110 Tenn. 684 (Tenn. 1903).

Opinion

Mr. Chief Justice Beard

delivered the opinion of the Court.

This is an injunction bill, filed by the complainant, a corporation organized under the laws of Tennessee, [690]*690against the Southern Railway Company, a corporation chartered by the State of Virginia, engaged in operating a line of railroad running between the cities of Memphis and Chattanooga, and the Commercial Publishing Company, a corporation with a charter issued under the authority of the State of Tennessee. The first and third of these corporations are engaged in the publication and circulation of two daily newspapers, and have their situs in the city of Memphis, and the Southern Railway Company is a common carrier of freight and passengers be-tween the termini mentioned.

The controversy arises out of a refusal upon the part of the railway company to receive and carry upon its train No. 6, scheduled to leave Memphis for Huntsville, Ala., each morning at 4:30 o’clock, packages containing neAVSpapers published by the complainant company and put up for delivery at certain stations along the line Of said railroad; the refusal being based upon the ground, alleged by the railway company, that by the terms of a contract already existing between it and the Commercial Publishing Company it was prohibited from carrying any other newspaper, than such as was published by that company.

The facts, conceded in the pleadings or found in the agreed stipulation of counsel in the record, are, that the defendant, the Commercial Publishing Company, was on the 29th of November, 1901, and had been for years prior thereto, engaged in the publication daily of a newspaper called the “Commercial-Appeal,” of wide circulation, [691]*691and especially with many subscribers living along tbe line of tbe railroad. At’that time there was no early train service out of Memphis by which newspapers could be carried to points between that place and Huntsville, a point on the road situated in the State of Alabama. Conceiving the idea that the value of its newspaper would be largely enhanced by the establishment of such train, it entered into a contract with the Southern Bail-way Company, the terms of which, so far as it is necessary to state them, may be summarized as follows: (1) The railway company agreed to operate a passenger train, consisting of an engine, a combination passenger and baggage car, and at least one passenger coach, between Memphis and Huntsville, leaving Memphis about 4 a. m. daily, and reaching Huntsville at or about 10:40 a. m., and on its return trip departing from the latter place about 7:20 a. m. and arriving at Memphis about 2 p. m. (2) It agreed to forward upon said train all newspapers which the Commercial Publishing Company might desire to distribute between Memphis and Huntsville, and to transport upon such train daily also such employees of the Commercial Publishing Company as might be necessary to handle the same, and also to forward daily on a freight train such newspapers to points east of Huntsville; also to operate its own hand car or velocipede, at its own risk and expense, over its branch line to Somerville, Tenn., from the town of Moscow. (3) It further agreed to refuse, so far as it might lawfully do so without violating the postal laws, rules, and regu[692]*692lations of the United States, to carry upon said train the newspaper or publication of any other publishing company; but other newspapers or publication were to be transported upon any other train or trains of the railway company except the one in question. (4) The contract further provided that the railway company might carry on said train all such passengers and their baggage, express matter, and other business usually accommodated upon passenger trains, as might be offered, upon such rates or terms as it might prescribe, and should retain all earnings and revenue derived from the operation of these trains. (5) It was also provided that the employees of the Commercial Publishing Company were to be under the exclusive control of the railway company, and amenable to the orders and instructions of its conductor, and to the reasonable rules and regulations of the carrier company.

In consideration of these undertakings on the part of the railway company, on its part the Commercial Publishing Company in this contract guaranteed to the railway company a revenue from the operation of this train of $125 for each one of the round trips contemplated by the contract, and agreed to pay the railway company the difference between the gross earnings of each of these trips and this sum. The Commercial Publishing Company further agreed to indemnify the railway company against all demands, suits, judgments, or sums of money accruing to the publishing company or any one or more of its employees and to protect it against any claims of [693]*693the employees of tbe publishing company and the cost of defending them, if suits were brought against it. In other words, the publishing company agreed to be responsible for all costs, demands, and claims growing out of the operation of the train and incurred in handling papers by and transporting employees of the publishing company.

It also undertook to publish daily a schedule time-card of the railway company in the Commercial-Appeal, as the same might be promulgated, with all changes and corrections therein, as might from time to time be made, and also to publish five hundred (500) inches of any advertising matter desired by the railway company, all of which should be done at the expense-of the Commercial Publishing Company. The railway company, however, agreed to grant a reasonable amount of free transportation over its lines to the publishing company.

This contract took effect December 1,1901, and was to-continue until December 31, 1902, with the right of renewal for a further period of one year.

The train thus provided for was soon thereafter put in operation by the Southern Railway Company, and it is agreed in the cause that it was one of its scheduled trains, and was advertised to the public as such. It is also agreed that it was controlled exclusively by that company, that all of the revenue derived from its operation was its property, and that it carried passengers and their baggage, the United States mail, express matter, [694]*694newspapers of the Commercial Publishing Company, and all such other matter as is usually transported on passenger trains of a commercial railroad.

On the 4th of May, 1902, the complainant began in the city of Memphis the publication and issuance of a daily morning paper called the “Memphis Morning News,” and immediately secured several thousand subscribers in the territory reached by this line of railroad. Desirous of reaching these subscribers at as early hour as possible, the complainant demanded the right to ship as freight its packages of neAVSpapers, properly directed to its several agents at the various stations along the line of the railroad where the train was scheduled to stop, and tendered the usual charges on the same. This demand, however, was refused by the railway company, upon the ground that it was restrained from such carriage by the terms of its contract with the Commercial Publishing Company.

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Bluebook (online)
110 Tenn. 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memphis-news-pub-co-v-southern-ry-co-tenn-1903.