The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-03-26
DECISION EFFECTIVE
Tariff Associations See No
Ground on Which to Stand.
PASSENGER MEN RESIGNED
ANY TRUST AGREEMENT NOW
OUT OF THE QUESTION.
DANGEROUS CHICAGO SUIT
Rebate Favoritisn1 to be Assailed by
Suit of Chicago t,oard of Trade,
with T on If Evidence,

Suit CT Chicago soard of Trade,
with Ton f Evidence,
ana Push d.
Chicago, March 25.-The Chicago and
Northwestern, the Missouri Pacific and
the st. Louis and Sam Francisco roads
filed notice of withdrawal to-day from
all the Traffic Associations of which they
were members. The Louisville and st.
Louis Airline also withdrew from the
Southern States Freight Association
of which it was a member. A meeting
of executive officers OF the Western
roads was held to-day in the office of
Third Vice-President Morton of the
Santa Fe to talk over the situation. AT
the close Of the meeting, however, it was
announced that no concerted acton had
been decided upon and none was likely
to be. The more the decision of the
Supreme Court is considered the more
clearly does it appear that not vestlge
of ground is left the Traffic Associations,
as they have heretofore been conducted,
ON which to exist. All that now remains
for the roads to do is to direct their en-
ergies ITO securing legislation that will
open some way for them to conserve
their interests and prevent their rev.
enues from being dissipated by mad COM
petition. None Of the Associations at
tempted to do any business to-day. No
circulars were issued by any of them and
no attempts were made to enforce obser-
vance of agreements. AS yet no rate
cutting has been resorted to as a result
Of the collapse of the associations. The
roads are simply attending to routine
business and seem to be afraid to take
aggressive action of any kind.
A mass meeting Of passenger men rep
resenting the Western Continental,
Ohio river and Southern lines was held
here to-day. 1t was of an entirely in
formal character, no resolutions being
adopted or concerted action of any kind
agreed to. This was very different from
the result wished for when the call for
the meeting was sent out That was
before the Supreme Courts decision "a
gainst the associa tions had been render
ed. 1t was then hoped that some ar
rangement could be arrived at by which
existing decentralization consequent on
the higher payment of commissions on
trans Continental business by the South
ern than by the direct Northern routes
could be overcome, but it is now conced-
ed that an agreement of any kind in the
matter is out of the question.
The transportation committee of the
Chicago Board of Trade is reported to be
engaged at present in formulating charges
of rate-cutting against certain lines of
road and of receiving illegal rates against
certain favored shippers. These are to
be presented to the interstate commerce
commission and by it prosecuted in the
Federal courts. 1t is said that some
half dozen favored firms have been given
such reduced rates on grain that their
competitors on the Board have been eff
fectively crowded out of the market and
found themselves unable to ship pound
of grain. A ton of evidence has been
collected, sufficient, it is said, to secure
conviction in a number of cases and
these, it is intimated, will be pushed to
the utmost limit of the law.
yIOE-PRES. SHAW'S OPINION.
Macon, Ga, March 25.-The recent de-
cision of the United States Supreme
court, to the effect that the Sherman
antitrust law applied to railway traf-
fic associations, has been the subject of
much comment in railway circles. Mr..
VIM. Cheeky Shaw, Vice-President of
the Georgia Southern and Florida was
asked for his opinion of the decision, and
in reply he said:
Gan / know about the decision is what
/ have read in the newspapers. AT
first sight it seemed to me that 1T looked
bad for the railroads. If the proper con-
struction of the decision is, that it is un-
lawful for railroads to associate for the
purpose of regulating rates and the pre-
vention of ruinous competition, then traf-
fic associations can not exist. But II a
proper Interpretation, shows that compet-
ing lines may fix rates and regulate traf-
fic subject to the approval of the inter
State Commerce Commission, then the
present associations can be adjusted to
such condition. 1t do not believe that
the Interstate Commerce Commission
will adopt, under this decision, proscrip-
tive policy toward the railroads. OF
course until the decision has been fully
and carefully considered, it would be i'm
possible to say just how far it applies;
and just what effect it will have upon the
railroad interests of the country
While conservative in his views, Mr..
Shaw, is a keen stnudent Of conditions
and it is fair to presume that his view of
the decision and it's effect, reflects very
largely the views Of railway managers
throughout the country.
M'KENNA CONSIDERS 1T FINAL.
Washington, March 25.-Attorney
General McKenna to-day sent instruc-
tions to District Attorney MacFarland
at New York to take an appeal to the
United States Supreme court from the
decision of he Circuit court of Appeals
in the case of the United States the Joint
Traffic Associate As soon as the pa
pers reach the Department of Justice a
motion will be made in the Supreme
court to advance the case or the docket,