The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-24
DAILY, so A YEAR.
CENTS A COPY.
WEEKLY 2-TIMES-A-WEEKS 81 A YEAR
RAILROADS HIT A HARD BLOW.
RATE ORGANIZATION GOING OUT
OF EXISTENCE.

The Supreme Courts Decision q
Knockout BIow-The Work OF
DisintegrRtiOn Already Under Way
at Chicago--COunseI of the Mig
Systems Advise Them TO Sever Ale
Connection with the Rate Orgnni-
zations.
Chicago. March 2.--withn a week. 1t Is
expected by high railroad officials that
not one OF the organizations having jur-
isdiction over passenger and freight rates
will be in existence in this country. as
result of the plain decision of the United
States supreme court that all associations
which have for their purpose the mainte-
nance Of agreed rates and the division OF
traffic are Illegal. The oldest organiza-
tons of this character must go to pieces.
In fact the work of disintegration began
in this city to-day. the legal advisors of
great railroads being quick to grasp the
hopelessness of the situation, so far as
continued membership in these associa-
tlons 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 1t has been
member. II ia believed Mr. Kenna will
advise the Santa Fe's withdrawal from
all passenger associations tomorrow.
A long consultation with the attorneys
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. Pauls with
drawal at once from all associations.
The counsel for the Chicago, Rock
Island and Pacific road advised the off,
GERS that the only legal course to pursue
was 20 sever connection with all assocla-
tons.
on reliable authority It was stated that
the following other important lines have
also decided to give similar notice of with
drawal: Wisconsin Central ST. Louis and
San Francisco, Minneapolis and st. Louis
and Chicago Great Western.
The peremptory action of all these COM
panies means the certain disruption OF the
following associations and committeess
Western Freight Association. Trans-Con-
tinental Passenger Association, Western
Passenger Association, Southwestern
Traffic Association, Trans Missouri Freight
Association Southwestern passenger
committee. Mississippi valley freight COM
mite. St Paul and Minneapolis Rate As
| ISOLATION, Colorado Freight Association,
| the local passenger associations of ST.
Louis, Colorado Springs. Pueblo, Denver
and Chicago; local freight agents asso-
| cation of Chicago, St. Louis Association
Of General Passenger Agents, Chicago and
ST. Lous Traffic Association, Western
| Classification committee, and Minnea polls
Terminal Freight Association.
| The life OF these foregoing ORGANIZATIONS
| is dependent on the unity Of action Of all
| members, and the withdrawal of one line
hsrf
rates which would Immediately result In
all the other competing lines quitting the
association,
Officers Of various western roads were
| divided on the effect which this disruption
| would have on rates officials Of the
Santa Fe said they saw no reason why
| rates should become demoralized; while
| representatives OF the Chicago and Alton,
| notably vice president and General Man
| ager Chappell. said they did not see how
| ratio wars could be prevented. Mr.. Chap
| pell said II think all traffic associations
will have TO go by the board From rail-
| road standpoint l think the decision Is
all wrong IL was rendered without ex-
| pert opinion"
Vice President and General Manager
Truesdell OF the Rock Island, said the
company would probably withdraw from
| all associations.
Vice President Morton of the Santa Fe,
each others throats during this emergen-
cy We look for relief from congress, but
TO be on the safe side we annulIed our
membership"
The consensus Of opinion is that period
of widespread and disastrous rate dis
turbance Is az hand because each road can
now do as II pleases, and cut rates openly
and secretly regardless of the interstate
commerce 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 the lowest
rates an advantage over their competitors.
Chicago officials believe II would be un-
wise and useless TO combat the decision.
and that their prompt compliance will
help the passage OF laws regulating trans
portation companies, especially the Pat
terson pooling bill, now pending. II Is
the general opinion that differentials.
which are an agreed lower tariff given
certain roads at a disadvantage by COM
petitors. will have to be abolished. Some
OF them have been IN force twenty years.
and have an important bearing on compe-
titlon between rail and water routes from
Chicago eastward.