Evening star., 1898-11-03
EFFECT OF SUPREME COURTS ACTION
Mr.. ingalls, Views Of Future of
Railway interests,
N E ED ED LEGISL ION
Special From a STAFF Correspondent.

py The Star correspondent to state what
would be the future course of the rail-
roads comprising the Joint Traffic Asso-
citation in view of the decision of the United
states Supreme Court that the organiza-
ton is illegal. There is to be meeting
of railroad men in New York tomorrow to
consider the decision, and it Is the opinion
that MI. Ingalls, plan, as here outlined.
will be adopted as the policy of the future,
at least until Congress passes some relief
Legislation on the subject.
MIR. Ingalls, Views.
In reply to The Star correspondents aues-
ton, Mr. Ingalls, said:
Since the decision in the transmits
souri, case In March, 1897 have felt that
the Joint Traffic Association under that
decision, so to speak, didn't have a legal
leg upon which to stand. 1 was abroad
when the decision in the transmissouri
case reached me- and upon my return home
l was in favor of disseminating the Joint
Iraff1c Association, but other officials
didn't take the same view as 1 did, and
thousht 1t best to continue the association
6eing OF the opinion that the Supreme
Court would, upon hearing Of the case
declare In favor of the association
Il don't believe the decision will be harm
full to the railroads. On the contrary
think 1t will be of great benefit. So far
cerned the Joint Traffic Association has
oeen OF no advantage to the railroads. In
tact, 1t has been lamentable failure
Rates nave never, in my railroad expert
ence, been so poorly maintained or badly
demoralized as at various times during the
NE OIL the association Particularly has
this been the case during the past six
months. The board Of managers of the as
seciatioI, made rates, but representatives
of the fast freight lines sent out to get
business and they would get it by cutting
the rates made by the managers.
Rope of Sand.
THE Joint Traffic Association agreement
was a rope of sand Penalties could not
be collected. and the railroads have no
standing In court sby which agreements
made by them can be enforced
AS said, the decision rendered by the
court will prove of great benefit to the
railroads. The presidents will now be held
individually responsible by the directors
ana stockholders for the revenues of their
respective companies, and they will have to
see to 1t that rates are strictly maintained
III ofdef TO render to the owners of the
properties satisfactory account of their
stewardship.
The president viii give their traffic man.
ayers and general freight agents positive In
structlons that rates must be maintained. |
nave today SO instructed the Big Four and
chesapeake and Ohio officials and 1 have
O1
roads will pursue the same course, for the
reason. as | have said, that the presidents
of the various roads will now be held per
sonally responsible for the revenues of
their companies, and will not have the
skirts of the Joint Traffic Association to
hide behind as an excuse for demoraliza-
ton in rates and consequent shrinkage in
revenue. There is no doubt that under
these conditions rates will be better main
tanned than they have been under the
Joint Traffic Association regime"
Withdrasss From Association.
When asked if the Joint Traffic Associa-
ton would continue TO do business, Mr.. In
gals replied:
So far as the Chesapeake and Ohio and
Big Four are concerned it will not 1 have
notified our representative on the board of
managers, Mr.. Decatur Axtell, to Withdraw
and resume his former duties with .he
Chesapeake and Ohio company of which
he is second vice president. Some of the
attorneys of the association think there is
stu chance for the association on points
that have not been made, but don't, and
think the general idea of the railroad Off
Gals is to accept the decision as final. The
Big Four and Chesapeake and Ohio will
withdraw from all associations as it has
been decided the railroads have no legal
right to enter into agreements for the
maintenance of rates.
q do not believe the railroads viii at
tempt to form new associations on lines
that will be within the law, for nothing
can be done until national legislator is Sc
cured that VIII give the railroads a s.and-
irg in court to enforce contracts. Uniform
rates. which are reasonable are greatly to
be desired. not only by the railroads. but
particularly by the shippers and business
community. With such rates enforced un-
der the sanction of the law the heavy
dealers and shippers or merchants viii.
have no advantage over the little fellows
as they have now with their private cars
lr,d rprh
reduced rates that are unknown to the man
in business in ii comparatively small way.
The merchants and business communities
all over the country recognize the import
ance of uniform and reasonable rates and
will urge the passage of legislation at the
next session of Congress that will benefit
both the railroads and mercantile world.
SugGested Changes
There are two changes that should be
made in the interstate commerce law
which would aid in creating a better con-
dition of affairs.
First. The tenth section or imprison-
ment clause should be stricken out, and a
new law enacted imposing a fine of, say,
5000 upon the offending corporation, max
ing each or every contract or bill of lad
ing a separate offense. Leave out the ship
per altogether. You want his testimony.
If he cheats by underbilling or false in
voice, he should be punished. but his at
rival should not be indictable, as you then
prevent the getting of the testimony you
need. With this amendment put into the
law every railroad official will willingly
prosecute his rival for violation of the
law, which he will not do when the pen
atty imposed is Imprisonment. A few fines
of 5000 would work wonders in reform
ing railroad corporations in their manage
ments.
Second. The law should be amended
that railway corporations can contract
with each other for the maintenance of
rates or the division of business, and, in
case of failure of either party to keep the
contract, allow the other to sue in the
courts or d recover damages. This, in part,
is what is called pooling, but 1t is more
than tbs. 1t legalizes contracts between
railway corporations. 1t may be a con-
tract for maintenance of rates with no
division of business.
To-day, If two railroad corporations con-
tract that they will maintain the same
rates between Baltimore and New York it
is conspiracy, contrary to public policy,
and cannot be enforced in the courts. This
is an old law which Is not adapted to mod
ern business methods. 1t grew up to pro-
tect the public In old times, but is no long
er necessary, and should be changed by
legislation. The right to pool provides that