The San Francisco call., 1897-03-24
Decision of the Supreme Court
Leaves No Loophole of
Ecape.
Already the Leading Lines Are With.
drawing and Preparing to
Slash Rates.

country as u result OI tue pldiu ueClSiOA
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
oldest organizations of this character must
go 10 pieces. There is no loophole for es-
cape. In fact, the work of disintegration
began in this city to-day, the legal ad-
visers of great railroads being quick to
grasp the hopelessness of the situation, so
far as continued mem bership in these as
sociations was concerned.
General Solicitor Kenna of the Santa Fe
system advised the traffic manager of that
road to withdraw Immediately from all
freight associations of which it has been
a member. Mr.. kenna also advised the
Santa Fe's withdrawal from all passenger
associations.
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
Peck stared he would advise the st. Paul's
withdrawal at once from all associations.
The counsel for the Chicago, Rock Island
and Pacific Railroad advised the officers
that the only legal course to pursue was
to sever connection with all associations.
On reliable authority it was stated that
the following important lines have decid-
ed to Withdraw: st. Louis and San Fran
cisco, Minneapolis and ST. Louis, Chicago,
Great Western and Wisconsin Central.
The peremptory action of all these COM
panies means the certain disruption of the
following associations and committees: !:
Western Freight Association, Transcon-
tinental Passenger Association, Western
Passenger Association, Southwestern Traf-
fc Association, Trans Missouri Freight
Association. Southwestern Passenger Com
mittee, Mississippi Valley Freight Asso-
citation, st. Paul and Minneapolis Rate
Association, Colorado Freight Association,
the local passenger associations OF St
Louis, Colorado Springs, Pueblo, Denver
and Chicago, Local Freight Agents Asso-
citation of Chicago, ST. Louis Association
of General Passenger Agents, Chicago and
St. Louis Traffic Association, Western
Classification Comm and Minneapolis
Terminal Freight Association.
The life of these foregoing associations
is dependent on the unity OF action OF all
me m bers, and the withdrawal of one line
may be followed by the making of lower
rates which would mmediately result in
all the other competing lines quitting the
associa tons.
Officers of Western roads interviewed by
the United Associated Presses this after
noon were dividei on the effect which to-
days decision would have on rates. Or
ficlals of the Santa Fe said they saw no
reason why rates should become demoral-
iZed, while Representatives of the Chicago
o,c lion patohlv Uica. PrasiIapt and
General Manager Chapel, said they did not
see how rate wars could be prevented. Mr..
Chappei added: II think all traffic asso-
Citations will have to go by the board.
From railroad standpoint | think the
decision is all wrong. 1t was rendered
without expers opinion.
Vice President and General Manager
Truesdale of tie Rock Island said the
company would probably withdraw from
all as sociations.
Vice. President Mortoo of the Santa Fe
said: ii do not believe railroads will cut
each Others tnroats during this emer
gency. We look for relief from Congress,
but to be on the safe side we annulled our
mem bership."
The consensus of opinion is that a
period of widespread and disastrous rate
disturbances is at hand. because each road
can now do as it pleases and cut ra es
openly and secretly, regardless of the in
terstate commerce law. Railroad men
and shippers agree that such conditions
will work injury to the general public,
giving big shippers and merchants who
get lowest rates an advantage over COM
petitors.
Railroad officials here were paralyzed
by the decision and little business was
done. All OF them we're busy discussing
the effect of the opinion and specializing
OIL the future. The officers of the associa-
tions were most deeply concerned.
AT the headquarters of the Western
Freight Assoc ation the Board OF Admin
isiration did nothing, although it has
been IL daily session for weeks and an i'm
port ant meeting on the division of traffic
was called for to-day.
Chairman Donald of the Central Pas
senger Association changed the opinion
he gave yesterday, admitting tie decision
affected passenger associations.
Commissioner Tucker of the Central
Freight Association consoled himsel with
the opinion that the decision would not
stand the combined attack of railroads.
Chicago officials believe it would be un-
wise and useless to combat the decision
and that their prompt compliance will
help the passage of laws regulating trans
portation com mpanies, especially the Pat
terson pooling bill now pending.
1t is the general opinion that differen-
tias, which are an agreed lower tariff
division on certain roads at q disadvan.
lage by a competitor. will have to be
abolished. Some of them hxve been in
force twenty years and have an inlportan mt
bearing on competition between rail and
water routes from Chicago eastward.
NEW YORK, N. Y. March %. -
Chauncey NJ. Depew. Who is chairman
of the board of ontrol of the Joint
Traffic Association, said to-day that there
was no doubt that the decision OF the
Supreme Court in relation TO the illegali;y
of the Trans Missouri Traffic Association,
and which was interpreted as applying to
all traffic associations. was of serious mo-
ment. He acded that he could not talk
upon the situation, however,
as be had not yet been furnished with the
full text of the decision, and until he
learned its precise specifications, he
would have to refrain from talking. He
was inclined to the belief. however, that
the decision did not cover the Joint
Traffic Association, or If 1t did that it
opened up a new course of action and tn at
each individual association mon the con-
diiions of lis organization would have to
have seperate hearing.
Mr.. Depcw then went on to explain that
the ARTICLES Of the Joint Traffic A socia-
tion were drawn ur withsthe most minute
care. They were prepared carefully by
the ablest lawyers in the country, and
nothing was dcne hastily, and that they
were passed upon by the foremost rail-
road men IN the country, the shrewdest
and brightest lawyers and amended so
that there was not flaw where they