The Wichita daily eagle., 1896-12-18
ARE LAWS BROKEN?
INVESTIGATION OF THE JOINT
TRAFFIC ASSOCIATION.

| lane of New York, Who is Supposed ia
be Able to Throw Most Light on the
Matters Covered in the Chandler Weso-
luton Report of the Interstate Com
! merce Commission, Recommending
Amendments toths Act-Railwsy News
Washington, D. c., Dec. 1.-THE SEN
ate committee on interstate commerce to-
day examined District Attorney McFar-
| land of New York regarding the trus.
resolution introduced by Senator Chan
dler. The resolution directed the COM
mittee to inquire whether the existing
agreement of the so-calld joint traffic
association provides against competition
by stipulation that every railroad COM
pany which is party thereto shall make
and maintain such transportation rates
managers, and provides for enforcing
such stipulation by fines; to inquire
whether such stipulation is a violation
OF the prohibition of the law of congress
against the pooling Of freights or the d.
vision of earnings by interstate railroads;
to inquire concerning the litigation pend
ing in the southern district of New oYrk
regarding the agreement and whether
and legislation is needed TO expedite the
proceedings, and to enforce the penali-
ties for any violation of the provisions
of the law against the oJint Traffic as
sociation. 1t also directed the committee
to investigate the charges that pooling
trust agreement with money against vio-
lators of the agreement and fixed rates
fnr rafc r;c-~
ers and window glass manufacturers of
the country and whether or not they are
in violation of the law.
Mr.. Mcfarland explained his argument
end briefs in the suits which he conduct
ed against the Joint Traffic association.
He said he hoped to get the case through
the circuit court of appeals at the term
beginning Jan. 10, and if the department
of justice would agree to formal SUBJ
mission of the case, ii might be advanced
and decision reached in tie United
States supreme court in the early spring.
Mr.. Mcfarland denied with some
warmth an intimation that the injunc-
ton proceedings were brought pro-forma
and without expectation of winning. He
declared that he had fought the case
earnestly and upon grounds that he be-
Heved to be sound.
Mr.. Mcfarland said one of the defects
of the interstate commerce law was that
there was no definition of what pooling
of freights was. The United States as
party had right to bring suit against
railroads without an investigation by the
interstate commission. He also spoke of
the doubtful character of the antitrust
law, when some suggestion was made
that the traffic agreement was in viola
tion of that statute. The suit he had
rl,N1 %l,1
ton was to test the agreement on its face
and not upon what might be it's intention
not expressed. Mr.. Mcfarland said that
under the agreement there was no doubt
that each road was bound to abide by
the rates fixed by the general managers
OF the association and subject to the fine |
imposed by the association.
CHANDLER CONSTITUTES.
Senator Chandler gave a lively turn to |
the inquiry by strongly insisting that |
the department of justice had not press |
ed the matter with vigor. He called spe- |
cial attention to articles 16 and IL of |
the traffic agreement, contending that |
the articles meant that the association |
could divide its earnings among the |
roads, and that itshould have been the
leading point presented in the case.
Senator Wolcott contended that the ar
ticles could not be construed to mean |
a division of gross receipts, because the
money might have been received from
the sales of bonds or from any other
source
Other members of the committee did
not seem to agree with Senator Chand-
Ter in his construction of the provisions
1f the quoted sections of the law but
the latter, continuing. insisted that the
case was not pushed with vigor because
Attorney General Harmon held that the
pooling agreement was no doubt legal
Some doubt was expressed about this
md Senator Chandler produced letter
n which Mr.. Harmon stated that no
ioubt the agreement was drawn within
he points covered by Judge Symington,
n the trans-Missouri case.
The reference to the Missouri
,ase caused a little discussion upon it |
Mr.. MacFarlane said that the trans Mis-
'ouri arrangement does not contain as
many strong features of pooling agree
nent as the Joint Traffic association,
)ut it was fully as strong an agreement
o maintain rates. The matter ended by
chairman Cullom saying that opinions
lpon cases pending in the courts were
ut of place.
JUDICIAL STOCKHOLDERS.
Mr.. MacFarlane next spoke of the diff
iculty encountered in finding judges
gho were not disqualified from trying
he case by reason of holding stock of
ONE of the various companies who
we're parties 10 the agreement. OF the
light judges in the jurisdiction where
he suit was brought, Judge Wheeler
vas the only one not disqualified for
his reason.
Senator Wolcott said that indicated
What was well known. that profession
j men and persons Of small holdings
invested in these securities and callect-
yely hold large amount. This de-
elopment seemed to surprise the COM
1ittee, which discussed the question
7hether or not the supreme court judg-
5 were disqualified to try the case when
came before them.
Mr.. MacFarlane explained that. there
eing so many roads in the Joint Traf-
C association, il was not singular that
Judges held stock. and added that Judge
.acombe had qualified himself 20 try
he case in the circuit court of appeals
Y disposing of the stocks he held. No
ction was taken looking 10 further in
by the committee
CALIFORNIA RATES.
Chicago. Dec. IA meeting Of the CAL !
ornia lines was called today at the
flee of Chairman Caldwell for the pur-
ose OF considering reported demoraiiza- ]
on in California rates. The charge was ,
,ade by some OF the roads that their
n,npetitors have been IN the habit of :
lie of granting free sleeping car trans {
ortation 10 parties going through to the
lst. This. IL true, means a reduction .
about SIS in the regular rates. The !
leei.ng was in session all OF the after :
ocl and finally came 10 the conclusion
Ia. there was no Generalization in the
rsineSs worth noticing. and the meet
lg adjourned after all the roads repre-
ented had agreed 70 keep rigidly 10 the
-OvisionS OF the agreement covering
L :