The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-03-25
TRAFFIC ASSOCIATIONS
ALL WILL PROBABLY BE DISSOLVED
AND THEN REORGANIZED.
None Can LegaIIy Exist ns Present
OBSERVATION-DISCLOSURES of Withdrawal
Served by Three Roads.

an illegal combine and came within the
scope of the Sherman antitrust act, all the
Western railway associations are on the
verge OF dissolution. 1t was reported yes
terday that the Joint Traffic Association
had resolved to fight the decision. but the
report was later announced to be prema-
ture. No action has yet been taken. James
6. Carter. one Of the counsel of the assoc
citation, notified Commissioners Blanchard
that the full text of the decision had not
arrived. and until IL should have been care
fully considered he would not wish 10 adj
wise action. The board of managers met
In New York yesterday and attended TO
routine business. The question of dissolv-
ing the association was not discussed.
While none of the Western associations
have yet gone out of business. they are in a
very shaky condition. 1t was announced
from Chicago yesterday morning that the
Atchison, Topeka & Santa Fe had taken
quick action and served notice &C with
drawal from all the freight organizations
or which ii has been a member. These
are: Western Freight Association. South
western Traffic Association, Colorado
Freight Association, T-ranscontinental
Freight Committee. Transnissour Rate
Committee. Seaboard Rate Committee. gen.
eral Eastern agents of the Western roads
in New York and other seaboard I'oiuts. All
these associations have been practically
abandoned. Later i'm the day it mas an
nOunced that two other roads had followed
the example of the Santa Fe. These were
the Burlington and the Minneapolis * ST.
Louis. They both went a step further than
the Santa Fe. in that they withdrew from
all organizations of which they were mem
bers, passenger as well as freight. The
Santa Fe Is still a member OF the Western
Passenger Association, and will remain 80
until fully satisfied that the law applies to
passenger traffic as well as freight. 1t was
expected that the Rock Island and the
Milwaukee & St. Paul would also with
draw yesterday, but after mature ceiibera-
ton these two roads decided TO content
themselves for the present with abstaining
from any action in meetings or looking to-
wards changes In rates as they At present
stand until the full scope of the Supreme
COURTS decision can be fully ascci tanned.
The Chicago * Northwestern road occupies
a similar position.
All the associations still retain their cor-
porate existence, and will continue to do
so for the time being. None of them. how
ever, will attempt to do any business until
IL Is decided what their future will be. That
they will be continued in some form is 4
foregone conclusion. The business of the
roads is too much 10 permit
OF its transaction without some llea rs of
mutual action. 1t is confidently believed
that some. way will be found of reo-gaLiz-
ing them in such a way as to prevent any
conflict with law. and TO that end Tie en-
ergies of the officials will now be bent.
The Burlington has appointed Chairman
Caldwell, of the Western Passenger Asso-
citation. TO handle its mileage tickets and
TO issue clergymen's permits, which i re-
Sarded as a hrSt step toward a reorganiZa-
ton OF the Western Passenger Association.
although necessary on different lines.
Chairman Morrison, of the lnterstate-com-
merce commission, has rendered an opinion
that the Transmissou Freight Association
case applies to the passenger as we'll as the
irSlsnt associations OF every character.
Following the action of the Burlington
and the Minneapolis x st. Louis in with
drawing from the associations, the board Of
administration or the Western Freight As
ISOLATION yesterday took decided steps and
ordered the offices OF the organization in
the Rookery building, Chicago. To be closed
ana no more business will be transacted by
IL until orders come from the executive
officials of the roads comprising the asso-
citation to wind up its affairs.
In regard to the above the Inter Ocean
this morning says: This hasty closing of
offices that have been maintained for wears
and were until n day or so ago one of the
most important factors in the Western rail-
roads is sensational and only tends to
augment the panic now existing among the
pig railway systems. 1t filings. upward of a
hundred clerks OF various kinds and de-
greeS out OF employment and i'm a day or
so this number is likely to be increased by
the probable dissolution of the Western
Passenger Association"
Opinion of railway officials and their
counsel is divided on the question If dis
solving all the associations. Railroad law
yers in Philadelphia do not believe the de-
cision of the Supreme Court settles tiis
legality of the Joint Traffic Association
railroad lawyers who have followed the
case against both the Transmisso Iri and
the Joint Traffic Associations, while ad-
hitting that the decision, as rep orted.
seems to be that the Asso.
citation violated the Sherman antitrust law.
hold that the case was decided on its
Il merits and that tho Infnf yTra n. -;
ton is another matter. involving another
agreement which will have to be passed
upon. One railroad attorney who has care
of the Joint Traffic Association presents
many points of difference from that Of the
Transmissouri Association. When the
former was organized all the points of OBJ
lection to the latter were fully and care
fully considered by eminent counsel and
present the Joint Traffic Association must
be taken TO be upheld by the courts. The
Judgment OF Judge Wheeler, which has been
sitting In the Circuit Court of Appeals. is.
until reversed by the United States Su-
preme Court. the law of hat case. The
Transmissouri case. in many respects. pre-
scented other and different questions.
fSa1 wiu has; therefor; been hnallx DECIDED
cation from being sustained by the ST.
preme Court when this case is heard
Russell Sage said at New York yesterday
regarding the decision of the Supreme
Court, that a 4 to 5 decision was not alarm
ing after all. 1T is bound TO come out
all right in the end" continued Mr.. Sage.
There is no question on that point. Brain.
and capital have ruled the world since the
advent OF man.. and natural laws have not
been changed. because of this one adverse
decision No human law can prevent the
combination OF interests in social or bust
ness affairs. So-called protective laws are
not needed by the public. for no association
or trust has yet been able to operate at a
profit for any length of time when il at
tempted to Cypress the people. | think an
amendment to the present law will be asked
OF Congress, whereby combinations of in
terests can be legally effected. AS TO the
railroad properties i'm which 1 am personally
Interested. L do not yet know what will be
done. or whether they will withdraw from
the associations to which they belong. The
directors Will meet in due course OF time
and will talk over the situation carefully
| before taking action. The lawyers will also
consider the case in all its bearings and
evolve some plan of future procedure. In
the meantime let the investing public KEEP
| cool"
one result of the Supreme Courts deci-
sion was shown at Kansas City yesterday,
when a number of grain firms ignored the
branch office of the Western Freight AS
ISOLATION in billing their cereals east
Heretofore all this business has beer
transferred through the local office of thai
association. In the future these firms vii
present their billings 10 the different rail.
road companies Individually. Should ths
roads refuse 10 transact the business thus
offered them the lawfulness of the organ.
ization of the Western Freight Association
may he brought to the, attention of the
federal courts.
A Pacific Coast scheme.
A great railroad deal. the accomplishment
1 - w-hfnh - nnnr ~ hard aus tho Sn