Evening journal., 1897-03-24
MAY BRING A RATE WAR
The Effect of the Supreme Court
Decision on Railroads.
A DAMAGING BLOW TO POOLING

Dlsintegration of Many Associations and
Committees Expected-United States Dis
trict Attorney MacfarIane's views-The
Opinion of Chauncey Depew.
CHICAGO. March 24-within a week IL.
is expected by railroad officials that not
one of the organizations having jurisdio-
tion over passenger and freight rates will
be in existence, as a result of the decision
Of the United States supreme court that
all associations which have for their pur-
pose the maintenance Of agreed rates and
the division of traffic are illegal.
The work of disintegration began in
this city yesterday. General Solicitor Ken
ma of the Santa Fe system advised the
traffic manager Of that road to Withdraw
Immediately from all freight associations.
it is believed Mr.. Kenna will also advise
the Santa Fe's withdrawal from all pas
senger associations today.
A long consultation with other attor-
neys of the Chicago, Milwaukee and st.
Paul road was held by General Solicitor
Peck Before the meeting Of lawyers Mr..
Peck stated he would advise the St. Panls
withdrawal at once from all associations.
The counsel for the Chicago, Rock Island
road that the only legal course to pursue
was to sever connection with all associa-
tions
On trustworthy authority it was said
that the following other important lines
have also decided to give similar notice Of
withdrawal: Wisconsin Central, St Louis
and San Francisco, Minneapolis end st.
Louis and Chicago Great Western. The
peremptory action of all these companies
means the certain disruption of the follow
ing associations and committees West
ern Freight association Tranacontnent-
al and Western Passenger associations,
Southwestern Traffic association, Trans
missouri Freight association, Southwest
ern passenger committee, Mississippi val
ley freight committee, st. Paul and Min
neapolis Rate association, Colorado Freight
association, the Local Passenger associa-
tions of St Louis, Colorado Springs, Pueb-
10, Denver and Chicago; Local Freight
Agents association Of Chicago, St Louis
Association of General Passenger Agents,
Chicago and St, Louis Traffic association,
western classification committee and Min
neapolis Terminal Freight association.
0ficers Divided In Opinion.
The officers of various western roads are
divided in opinion on the effect which this
disruption would have on rates. Officials
of the Santa Fe said they saw no reason
why rates should become demorallzed.
Representatives Of the Chicago and Alton
notably Vice President and General Man
ager Chappell, said they did not see how
rate wars could be prevented.
The general opinion, however, is that a
period Of widespread and disastrous rate
disturbance Is at hand, because each road
can now do rs It pleases and cut rates
openly, regardless of the interstate COM
merce law. Railroad men and shippers
agree that such conditions will work in
jury to the general public, giving big ship
pers and merchants who get lowest rates
an advantage over competitors.
At the headquarters Of the Western
Freight association the board Of admins
tration did nothing, although it has been
in daily session for weeks, and an impor-
tant meeting on division Of traffic was
called for today. Chairman Donald of the
Central Passenger association changed the
opinion he gave yesterday. admitting the
decision affected passenger associations.
1t is the general opinion also that differ
entails, which are an agreed lower tar1fi
given TO certain reads at a disadvantage
by competitors, will have TO be abolished.
Some Of them have been in force 90 years
and have an important bearing on compe
titiOn between rail and water routes from
Chicago eastward.