The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-12-22
WATCHING RAILROADS.
Senator Chandler Talks of the
Big Pool.
THE BIG TRUNK LINE AGREEMENT.

tee Now Investigating the Subject Is
Confronted by Scores of Lawyers EN-
ployed by Trust Representing Over
Two Billion Dollars of Capital Intent on
Violating the Law.
Washington, Dec. Ex-senator Chand-
Ter does not purpose to let up on the
railroads because of his interest in Gu
ba. In talking about the investigation
of the trunk line pool by the senate
committee on interstate commerce, he
said:
"One question to be investigated by
the committee is whether a certain
point has been sufficiently presented to
the court. The railroads between Chi
cago and New York city desire by con-
certed action to stifie competition and
prevent a consequent reduction of prices
on freight and passengers. If no con-
cert exist between them cne line will
reduce rates and get more than its
share of the business. The added busi-
ness the other lines will lose. The pub
lie will get the benefit of the lower
rates. This is competition.
IF there is no law against pooling
the roads will agree as follows: That
the proceeds of all the business of
particular kind done by all of the roads
shall, after deducting the expense, ac-
tual or assumed, of doing the business.
be divided between the roads in certain
proportions.
Shall Pay the Excess over.
If any road gets more than its per-
centage it shall pay over the excess to
the roads which have received less than
| their percentage. In other words, they
| pool certain business by dividing the
| receipts of all the roads therefrom
among such roads according to certain
| percentages
but there exists a law that says
there shall be among competing roads
no agreement for pooling of freights
| or division of earnings. So the roads
make an agreement that all rates shall
| be maintained as fixed by board OF
| managers, and that If any road re-
duces rates 1t shall be fined by the man
ayers and pay the fine. and the money
from those fines shall not be returned
| to the road, but shall go to the other
| roads
'It Is clear to me that this form of
| agreement is a mere device to unllify
the anti-pool section, and is an agree
ment to divide earnings. 1t makes no
difference whether earnings are to be
divided directly for the purpose OF
maintaining rates and preventing COM
petition, or whether they are to be di-
vided indirectly by fining an offending
company for the benefit Of the other
companies in order to maintain rates
and prevent competition. The distinc-
| ic
trick.
Was a Mere Trick.
II was the more confirmed in my opin-
ion that the system of fines was mere
trick when / heard that the same plan
had been adopted by the flour millers
and the glass manufacturers to keep
UP prices and suppress competition.
But Mr.. MacFarlane did not think
the point was worth presenting to the
| court, and Mr.. Harmon, the attorney
general, Of course, did not think so, as
| he had written me that he assumed the
| Joint Traffic association agreement was
| being so carefully drawn as to be le-
gal.
whatever the law may be, the COM
! mittee Is confronted with the lack OF
a court to try 1t. No judge in New
York city was qualified. Every one de-
clined because he owned stocks or
bonds In some of the roads making the
Joint Traffic association. Judge Wheel
er came down from Vermont to hear
the case. and was followed down by Z.
]. Phelps and George F. Edmunds. who
were able to remove from the judges
mind and idea that the agreement was
illegal.
Now, how to get a court OF appeals
is the question. 1t will take several
years before the case Is tried by all the
courts in succession. If all the exist
ing Judges are disqualified ii may be
| necessary for congress to create spe-
cial tribunal. In the meantime the
agreement goes on its way unop-
structed.
| An Unlimited Fund.
The roads composing the trust have
81. 200. 900, 900 of capital and virtually
control the whole $4,000. .00O, 900 of rail-
road property in the country. The nine
managers have an unlimited fund at
their disposal from which to hire law
| yers. agents and emissaries and pay
for all sorts of honest service. The
managers have boycotted one railroad
which did not obey their mandate by
| ordering the other roads to sell no
through tickets over It, to give no
through way bills over II, and to give
no through baggage checks over II.
"The hugest aggreg alton of capital In
a combined mass, acting as one body,
which the world ever saw has put into
operation an agreement prohibited by
law. 1t has employed the ablest law
yers the bar of the country can furnish.
The thirty-two great railroads have
their additional lawyers. Against this
phalanx, i'm one lawsuit only, is pitted
one lawyer Mr.. MacFarlane, who told
the attorney general he did not wish
any assistance. the attorney general
having said he presumed the agree
ment was legal. No trust in this coun-
try can be successfully assailed by le-
gal proceedings II his 81, 2,20O,0 100000 rail-
road trust can thus defy law and is to
be fought only by such feeble and i'm
potent means"
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