The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-23
FREIGHT AGREEMENT ILLEGAL.
Federal Supreme Court Holds 1t ViO-
Iates the Law.


Washington. March BY majority
opinion delivered by Justice Peckham, the
supreme court of the United States to-day
announced its decision that the agreement
of the Trans Missouri Freight Association
to maintain rates within Its territory, was
violation of the anti-trust law of 1890,
prohibiting contracts or combinations in
restraint of trade, and must be abandoned.
This reversed the decision Of the court be-
low, which ordered dismissal of the gov
eminent bill. Justices Field, Gray, ShiCas
and White dissented.
Justice Peckham said the case presented
two questions Of Importance: ~ Does
the antitrust act apply 10 and cover COM
mon carriers by railroad? % II so, does
the agreement complained of violate any
provision of that act?
The court finally holds: 1.-THE ques-
ton as - one of law in regard
to the meaning and effect of the agree
ment itself naturally. Does the agree
ment restrain trade or commerce in any
way so as to be a violation of the act2 We
have no doubt that IL does. The agree
ment on its face recltes that II is entered
into for the purpose Of mutual protection
and violation subjects the defaulting
company TO pay a penalty. While in force
and assuming ii to be lived up to. there
can be no doubt that its direct immediate
and necessary effect is to put a restraint
upon trade or commerce. as described in
the act We think the fourth section of
the act invests the government with full
power and authority 70 bring such an
action as this, and If the facts be proved
an injunction should issue. The DEGREES
of the court of appeals of the circuit court
must be reversed and thescase remauded."
The dissent of Justices Field, Gray, Shi-
ras and White was announced by the lat
ter. He said that the decision of The
court followed the letter Of the law,
which killeth, rather than the spirit which
giveth life. The ultimate analysis of that
decision was that there must be no trade.
An attorney, who has been connected
with the litigation In its progress through
the supreme court, speaking Of the effect
of the decision, said; 1T settles that the
Joint Traffic Association OF the eastern
trunk lines Is Illegal, and that the decis-
ion of the circuit court OF appeals in New
York on Friday last, sustaining the law
fulness of that combination was errone-
Gus. 1t will also compel the dissolution of
all similar combinations of railroads.
holding in effect. as 1t does, that the anti
pooling clause of the interstate commerce
act is very much widened by the anti
trust act of 1890. 1t leaves the question
open whether manufacturing trusts can
be reached practically under the anti
trust law"
Chicago March 22.-Railroad officials,
especially those connected with associa-
tions, were much concerned to-day at the
receipt of the news from Washington that
the supreme court OF the United States
had rendered a majority decision declaring
the old Missouri Freight Association an
illegal combination in vialation of the
anti4tr1fst law The eset fNbn is expected
to affect the organization Of the Joint
Traffic Association, the Western Freight
and Passenger Association and the South
western Freight Associations. These as
sOciations. to a larger or smaller extent,
remove the rate-making power from the
hands of the traffic officials of the COM
panies represented, especially in the hands
of the board of administration, partic
ularly in the case of freight rates. Pools
for the specific division of traffic among
the roads interested are also barred I'M
der the decision of the highest tribunal
and the least that Is expected to follow
the important decision to-day is a reor-
ganization of these associations on lines
in conformity with the antitrust law.
The Missouri Freight Association
is no longer in existence, but the decision
is none the less effective. The case was
originally brought by the attorney gener-
al of the United States on behalf of the
interstate commerce commission. He
proceeded under the antitrust law. Be
fore the case came to trial in Kansas the
association was dissolved, but the court
insisted on the case being brought to a
conclusion. Judge Raines of the United
States circuit court, sitting at Cheyenne,
Wyo., dismissed the bill of the attorney
general, the brief for the railroads being
presented by George 5. Peck, general
| counsel for the Santa Fe system, now with
| the st. Paul road An appeal was taken
to the United States circuit court Of ap-
peals sitting at st. Paul, which upheld the
decision of the lower court and it was
this last appeal which was decided to-
day.