Evening star., 1898-10-24
RESTRAINT OF TRADE
Decision in the Joint Traffic AssoGla-
ton Case.
HELD TO BE ILLEGAL COMBINATION
Opinion of the u. S. Supreme
Court.
DEFENDANTS CONTENTION

The United States Supreme Court today
decided the Joint Traffic Association rail-
read case in favor of the United States and
against III railroads. The case is consid-
cred one OF the most important shat fas
ever come before the Supreme Court. not
only 10 railroads. but to the srneral public,
and because Of the vast railway properties
rspreseutcd by the traffic association.
The association was formed November 80,
1875. by thirty-one railways reprcs nting
the great trunk lines and their network Of
branches The purpose of the association,
as stated in I'll, articles of agreement, was
to establish and maintain reasonable and
Just rates, rules and regulations on state
and interstate traffic. \ similar associa-
tion on a smaller scale was established
among southwestern roads, known aS the
Trans Missouri Association
These associations wer- soon attacked IN
the courts on thu ground thai they were in
violation of the sherman antitrust l.w,
and also Of the iHtcTStat- commerce law
The TraUs-AIissouri first reached the jnIted
States SupTs ne Court. where, in a notable
opfniou. the court Reid that the dSS1Cld tipl
was Illegal. being in effect combination
in restraint OF trade and commerce, ana
the+ efore Violat5Ec ot the uutt-tcUSt law
This opinion WAS by divided bench, the
division igiug very close, viz: thlel Justice
Fuller and Justices Harlan, Brewer. Blown
and Ptckham holding the traffic association
Illegal y lille justices Field, Gray, Shirds
ana " hiJe hie1 dissenting opinion uphold
ing the association Soon after this Gafis-
ion Justice Field gave place 10 Justice NC
k=nnd.
AItno Ugh the Missouri case was consider
ed somewhat of test. yet the Joint 1fai-
fc Association prepared 10 make a stup-
born contest III support of its existence
The case against !. was begun January -
1896; in the United States circuit court Tor
the. southern district Of New York. the
United States being complainant. and the
Attorney General directing its course The
case went AGAINST the government in tine
lower Cuyrts. the circuit court diSmISSlnS
the bill =ud the court Of appeals dhirmlnS
the dismissal. The government appealed to
the United states supreme Court An eX-
CcPticuaIly brilliant array of counsel ap-
psared for the association and the seTera!
railroads. including ex-senator EjT1GndS.
James e.. Carter and 2 J. Phelps Solicitor
General Richards filed the brief for the
government.
Tho main contention Of the government
was thai the traffic agreement is combi-
nation to prevent competition. thus copsti-
tuting a contract in restraint Of trade or
commerce.
The answer Of the association maintained
the legality Of the agreement. on the
ground that the vast needs of commerce
require joint action. and that such action
insures uniform and Just rates and pre-
vents secret and unjust determinations.
Points in the Decision.
Justice Peckham announced the decision.
He said that the court could distinguish no
difference between this case and that of the
trans-MiSsouri ease decided a year ago,
which was decided against the railroads
lie said the only new point involved was as
to the cpnstitutiunaIity of the antitrust
act. The court had reached the conclusion
that railroad corporations performed du-
ties Of a SrmI-PuDliC character il was with
III the constitutional power Of Congress to
regulate them as provided by the antitrust
act The only question, then. was as 70 the
policy Of Congress in adopting such Il
measure. and as to questions OF policy the
court. n" said. had nothing to do.
The opinion. which was very brief. was
conrurr.I i'm by Chief Justice Fuller and
justices Harlan. Brewer. Brown aad Peck
ham Three justices diSScnted, namely.
Justices Gray. ShiraS and White Justice
Mckenra took no part IN the case. as the
prosecution Of the Joint Traffic Association
was begun while he was attorney general.
After Justice Psckham had announced
thu opinion Justice Harlan verbally eX-
pressed. with some evidence of satisfaction.
Ms concurrence. ON ttv same ground, he
said IS that set forth in the trans-Missouri
cas-.
Vnder tEe decision today the decisions Of
the United States circuit court for the
southern district Of New Yor. and of the
United States court of appeals, both of
which We're favorable to the Joint Traffic
Association. are reversed.
other Gases Decided.
justice Pcckham also announced the
courts opinion in eases against the Kansas
City LIN Stock Exchange. operating al
Kansas City and western Missouri. The
government prosecuted under the antitrust
law. The Supreme Court holds that the
association does not come under the anti
trust Inv Justice Harlan in 81 dissenting
opinion declared that such combinations
wer- r--I@ ug sEuileat-s which if extended
20 oL. sugar salt. lumber and other staples
would place the commerce Of the country
.1!-. rae control of &. few rings ana syuG.-
e---s.