The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-03-26
More Notices of withdrawal from
Western Traffic AssOciations-The
Latter Doing No Business.

The decision of the United States Supreme
Court in the Transmissouri Freight Asso-
citation case, in which the court held that
railway pools came within the scope of the
Sherman antitrust act. and were, there
fore. illegal. is still being discussed gener-
ally by railway officials. When NJ. E. In
gals, president of the Big Four and the
Chesapeake * Ohio systems. was asked by
a New York reporter what he thought of
the decision, he said: II am not greatly
disappointed. / drew the original agree
ment Of the General Traffic Association.
and / drew 1T on a line with the decision
of the Circuit Court which has just now
been reversed. IL that decision had been
upheld | am sure that our agreement would
have been. But at the time | had my
doubts about it. When that Circuit Court
decision is reversed by the Supreme Court
it seems to me that there is no possibility
of an association or an agreement legally
maintaining rates.
Now. i am not sorry that the decision
has been rendered, for two reasons. In the
first place. while claiming to have the law
with us, we have had none that gave us
any protection, and we have relied too
much on the association and the agree
ment. which was a rope OF sand. instead of
upon our individual efforts. In the second
place. i have always believed that we
needed legislation so that the railway traf-
fe, which amounts to one-fifth OF all the
business of the land. should be brought
within the law. Whenever we nave tried
to get legislation we nave been met by
statements that it was not necessary; that
We were acting under the law. This deci-
sion effectually settles that. and it ought
10 lmnrPSG Hn0n lnV reasonable hOdV Of
legislators that there must be legislation
specifically legalizing contracts among rail
ways for the maintenance of rates and the
distribution of traffic"
What legislation would you suggest?'
asked the reporter.
Il should be in favor said Mr.. ingalls,.
'of legislation giving to the Interstate-com-
merce Commission the same authority that
the Board of Trade has i'm England. That
Is. that the railroads might make agree
ments for the division of traffic and the
maintenance of rates, and providing that.
in case of any complaint that excessive
rates were charged, the Interstate-com-
merce Commission should hear the case and
their decision upon IL should be final until
IL was reviewed in "a higher court. This
would aid commerce and would injure no
one. The question will be asked, What will
the railroads do under the present condi-
lions? L am going abroad for a short stay,
but my advice to those with whom | talked
to-day has been that this New York case
against the Joint Traffic Association should
be taken TO Washington at once under an
agreement with the district attorney. and
the Supreme Court should be asked for an
Immediate hearing. If that court still ad-
should be disbanded. and each railway.
through its proper officials. should make its
own rates.
Il do not understand from this decision
that there is any objection TO the railroad
managers meeting and agreeing that the
tariff shall be uniform ! understand that
ment or association for controlling the busi-
ness is Illegal. 1t will put the burden or
the general freight and passenger agents.
at least there will be no Improvement i'm
rates 1t will be hard on some of the weak
lines and will unduly help the strong ones.
This will in the end produce a war Of rates
which will result in the absorption of the
weaker lines by the stronger ones"
Receivers Frederick r. Coudert, Z. Ellery
Anderson and Oliver w. Mink. Generar
Manager Edward Dickinson and other Off
Gals of the Union Pacific Railroad arrived
in Denver yesterday on their annual tour of
inspection. The original intention of the
party was to go as far as Salt Lake City,
but that has been abandoned. as Receiver
Clark is ill in St. Louis. Il can hardly say,
said Mr.. Mink, what will be the effect OF
missouri case. The Union Pacific has not
acted as yet, and i cannot forecast what
we will do. Much depends on the develop
ment of the next few days"
The breaking up of the freight and pas
senger associations" said General Manager
Dickinson, means a general demoraliza-
ton of all rates. and eventually Il most
disastrous railroad war. When the war
comes it will be a question of the survival
of the fttest. The big roads are sure to
take advantage of this opportunity to crush
out of existence their rivals. / hardly be-
lieve that any of the roads are looking for
trouble. but trouble will come. now that
each line IL on an Independent basis. The
relations between the Union Pacific and the
Oregon Short-line remain undisturbed, ana
~. Railroad business is gradually improv-
ing. Business is better now on the Union
Pacific than 1t was a year ago.
Attorney General McKenna has sent In
structions to District Attorney MacFar-
lane. at New York, TO take an appeal to
the United States Supreme Court from the
decision of the Circuit Court of Appeals I'm
the case of the United States against the
Joint Traffic Association. As soon as the
papers reach The Department of Justice a
motion will be made in the Supreme Court
to advance the case on the docket SO that
a speedy determination of the questions in
volved may be had. 1t is stated that the
decision OF the Supreme Court last Monday
in the case OF the TranSmisSOuri Freight
Association covers all of the main points
in the decision CT Judges Wallace and La
combe in the case of the Joint Traffic As
ISOLATION. and although IL was a majority
opinion. neither II nor that of the minority
sustained the principal points c~ontended
for by the traffic association and allowed by
the court below. The officials of the De-
partment of Justice had assumed that. in
view of the later decision of the Supreme
Court. the Joint Traffic Association would
dissolve. as II Is understood the Western
associations are doing. but Information has
reached them that the Joint Traffic Asso-
citation intends to still further contest the
questions involved. and hence the appeal.
There is no question at the Department of
Justice that last Mondays decision covers
every material point involved in the joint
Traffic Association case, and so far as the
officials are able 90 see, there can be only
one issue 10 the contest, ana that is the as
ISOLATION must dissolve. 1t also is their
opinion that the passenger associations
come as clearly within the prohibitions of
the law as do the freight associations. Ii
and decided before the summer recess OF
the court.
The Chicago q Northwestern. the Mis-
souri, Pacific and the St. Louis & San
Francisco roads filed notice of withdrawal
yesterday from all the traffic associations
of which they were members. The Louis
vile * ST. Louis Airline also withdrew
from the Southern States Freight Assoeia-
ton, of which il was a member. a meet
ing OF executive officers of the Western
roads was neId yesterday in the Office of
Third Vice President Morton. of the Santa
Fe. says a disi afch from Chicago. TO talk
over the situation At the close OF the
meeting. however. Ii was announced that no
concerted actiCu had been decided on. and
cision of the Supreme Court Is considered
the more clearly does IL appear that not a
Vestige of ground il left traffic associations
as they have heretofore been conducted. On
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