The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-10-25
ANTITRUST LAW VloLATORs
A MENACE TO COMMERCE AND
TRADE.
Justice Peckham Announces the
Opinion Which Reverses That
of the Lower Federal
Courts.
special pigratch to The CalI.

WASHINGTON, Oct. 24.-The United
States Supreme Court to-day decided
the Joint Traffic Association case in IA
vor of the United States and against
the railroads.
The case was considered one of the
most important that has ever come to
the Supreme Court, not only to the rail-
roads but to the general public, and
because of the vast railroad properties
represented by the Traffic Association.
The association was formed on NOvem-
her 10, 1885, by thirty-one railways rep
resenting the great trunk lines and
their network of branches. The pur-
pose of the association, as stated in the
articles of agreement, was ito estab
lish and maintain reasonable and just
rates, fares and regulations on State
and interstate traffic" a similar as
ISOLATION, on a smaller scale, was
formed among Southwestern roads,
known as the Trans Missouri Associa-
ton.
These associations were soon at
tackled in the courts on the ground that
they were in violation of the Sherman
antitrust law, and also OF the inter
state commerce law. The Trans
Missouri first reached the United
States Supreme Court where, in q not
able opinion, the court held that the
association was illegal, being in effect
a combination in restraint of trade and
commerce, and therefore VioIatiye Of
the antitrust law. This opinion was
by a divided bench, the division being
very close, viz: Chief Justice Fuller
and Justices Harlan, Becker, Brown
and Peckham holding the Traffic Asso-
citation illegal, While Justices Field,
II; - 81
ing opinion UNFOLDING the association.
Soon after this decision Justice Field
gave place TO Justice McKenna. AL
though the Missouri case was consfd-
cred somewhat Of a test, yet the Joint
Traffic Association prepared to make a
stubborn contest in support of its eX-
istence. The case against it was be-
States Circuit Court for the Southern
District of New York, the United
States being complainant and the At
torney General directing its course.
The case went against the Government
in the lower courts, the Circuit Court
dismissing the bill and the Court of APP
peals affirming the dismissal.
The Government appealed to the
United States Supreme Court. An ex-
ceptiOnalIy brilliant array Of counsel
appeared for the association, including
ex-senator Edmunds, James c. Carter
SOLICITOR ATeQeTal
Richards filed the brief for the Gov
eminent. The main contention of the
Government was that the traffic agree
ment Is com bination to prevent COM
petition, thus constituting a contract in
restraint of trade or commerce. The
answer of the association maintained
the legality of the agreement on tho
ground that the vast needs of COM
merce require joint action, and that
such action insures uniform and Just
rates and prevents secret and unjust
determinations
Justice Peckham announced the de-
cision. He said that the court could
distinguish no difference between this
and the trans-Missouri case decided a
year ago against the railroads He said
the only new point involved was as to
the cOnStitutlOnality Of the antitrust
act The court had reached the con-
clusion that as railroad corporations
performed duties of a semi public char
acter it was within the constitutional
power of Congress to regulate them as
provided by the antitrust act The
only question was as to the policy of
Congress in adopting such a measure
AS to questions of policy the court, he
said, had nothing to do
The opinion, which was very brief,
was concurred in by Chief Justice Full
Ter and Justices Harlan, Brewer Brown
and Peckham. Justices Gray. Shiras
and White dissented. Justice McKen-
ma took no part in the case as the pros
ecutiOn of the Joint Traffic Association
was begun while he was Attorney Cen
eral.
After Justice Peckham had an
nounced the opinion Justice Harlan
verbally expressed, with some evidence
of satisfaction, his concurrence on the
same ground, he said, as that set forth
in the trans-Missouri case. Under the
decision Of to-day the decision of the
United States Circuit Court for the
Southern District of New York and of
the United States Court of Appeals,
both of which We're favorable to the
Joint Traffic Association, are reversed.
Justice Peckham also announced the
courts opinion in cases against the
Kansas City Live Stock Exchange op-
Grating at Kansas City and Weston,
Mo. The Government prosecuted under
the antitrust law. The Supreme Court
holds that the association does not
come under the antitrust law. Justice
Harlan in dissenting opinion declared
that such combinations were rings or
Syndicates which, if extended to oil.
sugar, salt, lumber and other staples
would place the commerce of the coun-
try in control of a few rings and syn
dtcates.