The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-03-29
FINANCIAL IETTER
Henry GlsWs's Weekly Review q
the General sityation,
EFFECT Of TRE Anti TRUST
u,,i,ion GA wan street alf, clsws
ThnE. ths Erlsh. PFoaas;d suansess-
,,ry-rhe Dselsloa Bread and Radical,
and wlll LIKELY Encourage ths stataste
aaks Astlsn AEaia,s TrHitS

street tie,eoatfolllng event Of tho week
has beCn the deeltion Of the United
states suprefie court in the case against
the Tranl. Missouri freight Association,
declaring ~ acts ana purposes 10 be in
violation Of the sherman Rnti-truSt law.
on the street, the decision was quito
generally construed a. probably lnvRli-
dating all like associations formed for
The purposes Of regulating tho freight
rates and the traillc OF railroads, and
Therefore Is calculated to THROW railroad
operations into confusion and possibly
brectpltate q cuttins Of rates and loss 70
The railroads. AS the market happened
10 be anteCedsutly tlsUNsCd towards "a
realization OF profits upon the late rise
tit prices. the ,'berS' took advantage OF
The situation and Auccecded In reducing
prices OH an average 2tFf points.
F0r,tiGc present, this selling has prob.
ably reached It's climax; and the diSpp-
sItlOn 70 await further developments
showing the real Significance OF the de-
cislOh' 10 other freight ass9elptloAs ana
afto6ilnG Indications as 10 what steps
the railroads nre likely TO take to rlSs--
serve Altlire harmony and prevent De.
uOTutl&AIlpu, 0FNtiUtlANFiNs sly 49,
faith with which tho Eastern ASscrIA-
lion has phscfVed It's regulations eNl-
dHuces an GArnSAl deAile Oh the part OF
tta members to Avoid a recurrence 10
reckless competition: aud ~ Ions as
that feeling cXlatS. there IL guod reason
10 hope that, whatever may be dcnS or
not done. there Will be- no resort TO Z WGr
oeTptes
The decision Of ti,G court Y exceeding
Is broad and radical, and toniirmS the
ConstituIiSnallty " this Sherman antl-
trust Ian. LII lolle regrstted that the
court WAS not more unanlm0us' ONLY
fve Of It's nine members bclUg prepared
10 atiirm that fright aSsOcta tiOtts came
within the scops Of the Sherman law.
While the court Riiirtncd It's power to
adiudicate Ia tho Gaze by virtue OF the
Interstate commerce act, yet II reiter-
Rted its past decision that. excepting In
cases over which the latter law gives u
Jurisdiction. adjudication uIl1n c0mil-
nations 'IR restraint Of trade con; cx-
Clusirely Within tho province of state
law and state Couttn. This almost pnat-
imopR yndursem nj OF the prtnci3le and
coastltutI0nnIIt" Of the Sherman anti
trust law Is calculated to- have 9 very
Important bearing uloa the- action Of
the statVS towards Industrial trusts"
ana kllQElgiFlALlSklG
" and als1 trades unions, r
The decision affords the highest posst-
BILE confirmation Of the principle OF the
anti.monopo.Y federal law; Il gives
sanction 70 Z. form o! act which the
states may safely adopt for tbs proven.
ti0n and abrogatloh OF trust" lnStltu-
tons; and Il establishes a precedent OF
thu highest force for the guidance OF
state courts In dealing with Institutions
ALLEGED tn be t'ln restraint Of trade, the
more 30 as Il contains full and explicit
deAnlliou 1t what things are 70 be re-
Eardcd nS being lin restraint OF trade.
In these important respectl, the decl.
sion has even more threatening sig
Stillcanee for the Industrial combinations
than Il has for the associations intend
cd for the regulation Of railroad ttatIlc.
In respect TO the traffic. associations
other thGn the Trans Missouri, 1t may
possibly proc that differences from the
lattqrsln organization and scope VIII lie
found TO exempt them from the applica-
tInn OF the Sherman law: and, falling
that. there would lRmnln other RlternA-
tive methods OF regulating competition
which :hgy could adopt without Ytolnt.
Ing law. Rut the many industrial mo.
n0pOIIeR have no such ways o. escape
Tile highest court OF the land t1aA de-
F. " rs Nlbt9AAVhA
mental Inv; and, after that, there seems
u be siin chance for their cScaptng
ultimate prohibition.
The railroads are % course greatly
dlscoEccrted by the decision and rs yet
have been unable to decide what il their
best course under the circumstances. II
Ii open 10 them to wait until they have
been brought into the supreme court;
which might cone about either through
an appeal against the recent decision IN
favor OF tho Joint Traffic Association In
local federal court; or through new
suit against them; or by test suit at
their own mitigation. They are Rt pref
Cnt taking legal counsel upon tile NltuR-
ton, and viii probably take no action
until ali the legal aspects have been
placed before them Tho pfesldent1 OF
some OF the companies. however. seem
10 have allowed their fright TO gel the
batter OF their Judgment and are said to
b. caunSelIlnE a dissolution OF the asSo-
Clatlon. This 10 unfortunate: as such q
course would break bonds winch nj pres
ont arc holding the companies In hnrnlo.
ny ana would Invite the risks OF TN.
bridled competition. For the sake OF
preventing confusion, the existing or
ganizatIoIi should be kept up until either
some now arrangement IN provided In
Its place, Or II Is dissolved by legal
verdict During that interval, pence
would be preserved, confidence would be
protected. opportunity would he AFFORD
cd for dellbRratlon, and the companies
would be held tn harmonious relations
while they considered new plans for co.
operative protection.
II seems ~ me that the fright 10 which
the declsioE has given rise has exceeded
all legitimate occasion. II can only be
explained OH the ground that, when any
misfortune happens. the first thought 10
always 10 discount the worst possible
outcome. This han already been done in
this case; and now that the stage Of cool
elaboration has been reached, Il Will be
seen 10 i've merely question OF what 10
the bt6t way out Of the dilemma. This.
however. must depend upon whether
fHuiiagerG Keep their heads cool. hold
together Under their existing relations
etll nbstaln from cutting OF rates. This
granted, there will be no occasion for
further mlsgiyinRa, and the end OF the
trouble VIII probably he sOoon reached
by new agreement that will run foul
Of no existing law.
In some quarters. 1t is suggested that
the railroads carry their case to Com
gress, In the way OF asking a law that
VIII authorize Eoinc such cooperative
arrangements ns now exist: which
might not be a had course, provided
they feat more free than they have been
TO corporate with the Interstate com.
misalonoFs.
II the joint traffic association VIII
vote to diBbaud and then come t0aeth-
or Of q board OF council md hold their
meetings as such, merely recommend
Ing the result Of their deliberations TO
the board OF directors OF the various
roadS Represented In tho board OF Coun-
ell for their voluntary action, the recent
decision Of the lipitri States supreme
court cannot reach them. In my 1udg.
ment, especially II they set forth the
4aot t1,nt tvhHfnVor recommendations