The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-10-29
TO OPEN COMPETITION
Effect Of the Decision on the
Nations Railroads.
A F~AR-REACHING EFFECT
The Constitutionality OF the Sherman
Antitrust Act Upheld-The CUES
ton OF Governmental
Regulation.

Washington, Oct. 2s.-Sollcitor lei
eral John X. Richards. who has charge
of the governments side OF the Joint
Traffic association case before the SUI
preme court of the United States and
whose brilliant argument, occupying
two days. has been the subject OF much
favorable comment by members of the
supreme court bench and bar. was
questioned to-day after he had an op-
p~ortunity to read Its full text as to the
effect Of last Mondays decision on the
railroad interests Of the country. Mr..
Richards said:
THE Sherman antitrust act declares
illegal every contract, commission in
the form of trust or otherwise, or con-
spiracy in restraint OF the trade or
among the several states.
The Joint Traffic case clinches the de-
cision of the missouri case hold
ing that the law applies to railroads
and prohibits all agreements In restraint
OF Interstate trade and commerce..
whether the restraint be reasonable; in
addition, IL holds explicitly that the law
Is constitutional when thus applied even
to reasonable agreements in restraint
of trade.
THE constitutionality OF the act was
NOT rA1Se0 IN tnt lTdnS- hl-SOull Cdct
but in the Joint Traffic case Mr..
Phelps directed his entire argument to
this point, urging that ongress could
not declare illegal and prohibit reason
able contracts. The freedom OF con-
tract guaranteed. by the constitution
forbade II. he insisted. The answer Of
the court to this was that the railroads
enjoy public franchises, they perform
public services and when engaged in in
terstate are subject 10 the
regulations OF congress.
What the ultimate result OF the de-
clsion will be Il Is impossible to say.
Cases which establish important princi-
Piles usually affect, not simply courts,
but legislatures. in a way one cannot
foresee. II Is gratifying to believe that
the sentiment OF the people against
Injurious ~monopolies finds legitimate
expression through laws passed by the
representatives and upheld by the
courts. i am aware that competition
destroys rates and railroads. too. but
nevertheless there Is a sentiment among
the people against railroad monopolies
and in favor OF unrestrained competi-
ton. Most OF the states. some in their
constitutions and some in their laws.
have prohibited h consolidation Of
competing lines. Congress interfered
and prohibited pooling, which Is simply
biit hh'Nt VI
keep up rates.
There are men OF thought who In
sist that regulations should ~supplant
competition. but the people do not
think so yet. In fact competition Is the
recognized underlying basis OF social
and Industrial and political life I'm this
country. Competition goes along with
freedom. with independent action. The
country was founded on the principles
OF liberty and equality. Its founders
sought to secure to every citizen an
equal chance under the lava fair
showing i'm the race OF life.
Under this decision IL is left to open
competition to secure reasonableness in
rates. IL Is true that the common law
requires that rates shall be reasonable.
So Toes the interstate commerce law
But this Is a mere declaration and
there is no adequate remedy to enforce
the barren right. Congress has not
given the interstate commits
sion power over rates. IL has relied
upon competition to keep them fair.
Whether congress will see Mt to take
the railroads out of the operation OF
the natural law OF trade and for indie
pendent competition substitute govern
mental regulation remains to be seen"