The advocate., 1897-03-24
RAILROAD COMBINATIONS HELD TO BE
NOT ILLEGAL.


Senator PETER offered a resolution direct
ing the Interstate Commerce Commits
sion to report whether the combination
among trunk railroads known as the
Joint Traffic Association was or was not
violation of the interstate commerce
law, and what action, if any, had been
taken to prevent it's formation or contin-
uance. At first the commission was In
clined to regard the movement as at
least not illegal, but afterward concluded
that any such combination was at least
opposed to the spirit of the law, and pro-
ceedings were instituted to settle the
matter. The following dispatch shows
that the United States Circuit Court OF
Appeals held against the government
and in favor Of the association, and the
case was dismissed.
NEW YORK, March 19.-The arguments on the
appeal Of the government from Judge Wheelers
decision in the action brought in the name Of
the United States against the Joint Traffic
Association, alleged to be an Illegal comblna'
tion of the railroad interests formed for the
purpose Of defeating competition and for the
pooling Of traffic and earnings, were continued
to-day before Judges Wallace and Lacombe oi
the Circuit Court Of Appeals AT the outset II
was announced that the entire day would be
given to the hearing Of arguments by james q
Carter and F. J. Phelps in favor OF the joint
Traffic Association and against the appeal
taken by the United States government Al
the conclusion of the arguments the Judges
conferred briefly, after which Judge Wallace
announced in his opinion the United States
had no right to an injunction, and the appeal
was dismissed.
The arguments submitted by the attor-
news for the railroads add strength and
force to those urged by Populists in
favor of government ownership and man
agement. Mr.. Carter, speaking for the
Joint Traffic Association and it's right in
law and justice to exist, slated plainly
and emphaticslly thst-"Had the gov
ernment taken charge Of the railroads ii
would certainly have pursued the same
course Of combination and interchange
to facilitate commerce that the managers
of the great roads have been endesvor'
ing to bring about for years"
And he spoke truly. The great object
Of government ownership is to equalize
and to minimize the cost Of transports
tion. If the roads now operating were
capitalized honestly and on reasonable
valuation, such joint traffic association
could easily be handled by a government
commission. But the roads are moi
fairly or honestly valued, and there liei
the first and great objection to the pres
ent system. The companies are in deb
more than they are worth, They could
be duplicated now for about one-half the
par value Of the bonds they owe. Theil
stock. which amounts to little less thar
the bonded debt, is all that profits ought
to be allowed upon; but under our lawI
and the decisions Of the courts, trans
portation charges may be high enough
to produce fair per cent. profit on th'
total capitalization and stock to
gether. This necessarily taxes the peo
pie, whose business supports the roads
vastly more for the carriage Of them
selves and their property than they
would have to pay if the government
owned the roads; because, as at present
managed, the basis of charge is valua
ton Of the roads three or four times