The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-03-25
WEDNESDAY. March

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The retrogressive decision OF the United States
Supreme Court that traffic agreements between
railway companies are in restraint of trade.
and that therefore the companies making them
arc amenable to the Sherman Antitrust law.
was again to-day the principal influence shaping
prices on the Stock Exchange. The exact terms
Of that decision arc not yet known to the great
majority OF railway managers and their legal
advisers, and tho public generally is even less
well informed as to tho ultimate effect Of the
decision upon the transportation industry. 1t
must be admitted, however. that the tone and
apparent purpose Of the decision are alarming.
and when that Circumstance was aggravated
to-day by advices from Chicago that many Of
the railroad companies operating in the West
wore disposed to accept the decision as apply
ing to each one OF them and their various traffic
organizations. regardless OF the possibility
that some OF those organizations may be formed
upon lines different from those OF the defunct
Trans-Missouri Traffic Association, 1t is not
surprising that the speculative element in Wall
street fastened to throw over its securities this
morning, and that operators in favor OF the
short side adopted an aggressive policy. In con-
sequence the market was heavy the greater part
OF the day. and ut times positively weak.
1t can hardly be expected that those who arc
interested in stocks in a speculative way can
wv oSAASNo 81 etA'A w a StAAN AA~aAN
stances while a sharp decline in prices is taking
place. Every one familiar with railway affairs
knows that the averageW estern traffic manager
Is restless under any agreement that restraints
him from q fight with his competitors. 1t Is also
well known that the larger shippers arc OPP
posed to traffic agreements because they tend
to minimize their opportunities to obtain
lower rates than their competitors. Be-
sides, Chicago and the Western railroads
that focus at that centre have always been
jealous of the Joint Traffic Association. partly
because its organization is located in the East.
and also because It has been effective in LESSEN
ing the opportunity for cutting rates on Joint
account with the Western roads. These cir
cumstances explain to an extent the somewhat
hysterical advices from the West re-
gard:ng the Supreme Court antitrust
decision. In the current discussion Of this
subject an exceedingly important fact
seems to have been overlooked, name
ly. that railway traffic agreements are not made
against the public interest, but to protect the
railroads from one another. 1t Is also true that
in spite of all the importance they have attained
those Agreements have in the main fallen far
short OF accomplishing the purpose for which
they have been made. A number OF cases might
be cited, were it policy to do so, where harmony
Of action has been obtained between railroad
| companies without the formality of a traffic or
ganization and the attendant publicity.
Tho most discouraging aspect of the latest de-
! cis;on against the railroads is the evidence pre-
sented of almost universal hostility TO what 10
perhaps the most important industry In the
| country. Without the means of transportation
which the railroads supply, and which they arc
constantly increasing at q steadily reduced cost
to those who enjoy them. the development OF
this country would have been impossible. Yet
It Is fashionable to attack this vital element in
our commercial life as II It were some
hideous monster requiring absolute restraint.
There Is no occasion for wonder. there.
fore, that speculate 10 holders of sccuri.
ties have become discouraged and have
thrown them over. On the contrary. IL is
remarkable that there has been so little liquida'
ton OF actual holdings during the last two days.
The most effective selling to-day was OF the
Granger stocks. They supplied more than a
| third OF unusually large total transactions. In
the last hour the entire list rallied sharply. ow.
ing chiefly to a demand to cover short contracts.
Jersey Central was the leader in the dnal move
ment, the trading in 1t being Influenced, appar'
| emily, by the favorable showing OF earnings for
February. printed further on in this column.
The London market did not seem to take the
antitrust decision seriously, but was Influenced
by q more pacific political outlook and prospects
Of a scarcity of stocks at approaching fortnight
ly settlement.
Final sales compare with those OF yesterday