, 1898-10-25
RAILROADS LOSE
THE JOINT TRAFFIC ASSOCIATION
KNOCKED OUT BY THE SU-
PREME COURT.
1t Has No Legal Right to Exist-De-
cisiOn is of Great Importance-The
Case Was Almost Identical to That
Against the Transmissouri Asso-
citation a Year Ago.

Washington, Oct. 2t.-Tne United
States supreme court today decided the
Joint Traffic association railroad case
in favor of the United States and
against the railroads
The case was considered one of the
most important hat has ever come
from the supreme court, not only to the
railroads, but to the general public, and
because of the vast railroad properties
represented by the traffic association.
The association was formed on Novem-
Der IS, 1895, 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 es-
tablish and maintain reasonable and
just rates. fares and regulations on
state and Interstate ira lie"
A similar association. on a smaller
scale, was formed among southwestern
roads, known as the Transmissouri as
ISOLATION.
attacked in the courts on the
ground that they were in violation Of
the Sherman antitrust law and also OF
the interstate commerce law. The
tnnsmissouri first reached the United
States supreme court where in a notable
opinion, the court held that the assicia-
ton as illegal, being in effect. a combi-
nation in restraint of trade and COM
merce and therefore violative Of the
antitrust law. This opinion was by a
divided bench, the division being very
close, viz: Chief Justice Fuller and
Justices Harlan. Brewer, Brown and
Peckham holding the traffic association
illegal. while Justices Field. Gray,
Shiras and White filed a dissenting
opinion UNFOLDING the association.
Soon after this decision Justice Field
gave place to Justice McKenna.
Although the Missouri case Was con
sidered somewhat OF a test, yet the
Joint Traffic association prepared to
make a stubborn contest in support of
its existence. The case against it was
begun on January I, 1896. in the United
States circuit court for the southern
district of New York. the United States
being complainant and the attorney
general directing its course. An keep
tionally brilliant array Of ounse ap-
peared for the association and several
railroads, including ex-senator Ed
munds, James C. Carter and E.. +.
Phelps. Solicitor General Richards
filed the brief for the government. The
main contention of the government was
that the traffic agreement is a combina-
ton to prevent competition. thus con-
shutting a contract in restraint of trade
or commerce. The answer Of the asso-
citation maintained the legality of the
agreement on the ground that the vast
needs of commerce require joint &C
ton and that such action insures uni
form 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 that OF the transmissouri case de-
cided a year ago, which was decided
against the railroads. He said the only
new point involved was as to the con-
stitutionality Of the antitrust act.
The court had eacne the conclusion
that as railroad corporations perform
duties Of a semi-public character, it was
within the constitutional power OF con-
gress to regulate them as provided by
the antitrust act. The only question
was as to the policy Of congress in
adopting such a measure and 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. Three justices dissent
ed. namely. Justices Gray, Shiras and
White. Justice McKenna took no part
in the case as the prosecution Of the
Joint Traffic association was begun
while he was attorney general. After
Justice tPeckham had announced the
opinion. Justice Harlan verbally ex-
pressed, with some evidence of salts
faction, his concurrence on the same
ground, he said, as that set forth in the
transmissouri case.
Under the decision today the decis-
ions Of the United States circuit court
for the southern district of New York,
and Of the United States court Of ap-
meals, both Of which were favorable to
the Joint Trafic association. are re-
versed.
DeWitt's Witch Hazel Salve has the
,---- o~f-o L. 49, -NhH