The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-26
NEWS OF RAILROADS
DECISION AFFECTING THE JOINT
TRAFFIC. ASSOCIATION CAUSES
GENERAL INTEREST
FEW LOCAL MEN ARE SORRY
Prominent Railway Attorney
Says the Association Never
Amounted TO Much, for 1t Did
Not Accomplish Anything-Was
Intended to Bolster Up Rates, but
Failed of Its Purpose.


Not Accomplish Anything-was
Intended to Bolster Up Rates, but
Failed of Its Purpose.
The decision of the United States su-
preme court declaring the Joint Traffic
association to be an Illegal Organiza-
ton interested every person in railroad
business yesterday and every shipper
and merchant. 1t was generally &C
cepted as meaning that freight rates in
Eastern territory would soon be low
cred in consequence of the decision,
that rates would go to pieces and that
general Generalization in the East
would be the first result of it. 1t is
maintained in some quarters that with
out an agreement rates cannot be main
tanned, though it is admitted that rates
are hard to maintain even with an
agreement, but some railrOaders were
of the opinion that the effect would
be bad for the railways. Others thought
the effect would not be felt, as the
Joint Traffic association had not affect
ed rates to an appreciate extent. Rates
have steadily fallen in spite of it, and
that was considered by some as evil
dence that the decision would have no
material bearing upon the situation.
NEVER AMOUNTED TO MUCH.
GA great deal more is being made Of
the supreme court decision against the
Joint Traffic association than the case
warrants" said a prominent railway
attorney yesterday to a reporter for
The C o b e. 'Fhe Joint Traffic assO
citation never amounted to much, for
it really did not accomplish anything
during the few years of it's existence.
inf cd fn cst I'm
rates. the facts are that while the as
ISOLATION existed freight rates decreas-
ed. This was due to the natural trend
of circumstances over which the aSsO-
citation had no control. No association
can decree that rates snail be so and
SO if the conditions Of business are
against it, and that was the case there.
So, while the associations official eX-
iStence is at an end, little will be lost
besides the very fine salaries which the
officials have been receiving. They ara
the real and greatest sufferers by the
decision.
"The decision of the supreme court
is but that of the United States versus
the Trans Missouri association, which
was decided in March, 1897, to be il
legal. The act Of congress to which ref
erence is made in the decision provides:
That every contract combination in
the form Of a trust or otherwise Oe
conspiracy in restraint of trade or COM
merce among the several states or with
foreign nations is hereby declared to
be illegal
1.-THE court held in the Trans Missouri
case that this statute applied to a
contract between competing common
carriers by rail- forming an association
for the purpose of maintaining and reg
ulating the rates of transportation. The
agreement in the case and in the one
decided yesterday was for the pur-
pose of mutual protection by establish
ing and maintaining between different
companies rates, rules and regulations
on freight traffic.
HOW IT WORKED.
''By the agreement each road desig
mated one person to be held responsible
for rates on that road the person so
designated representing each a road
party to the agreement. committee
was to be appointed by such meeting
to make rates, rules and regulations,
and to change them. There was also a
provision for arbitration in case of a
difference. The rates so fixed were to
govern, and any road a member OF the
association failing or refusing to adopt
such rates was made subject to certain
penalty stated in the contract.
THE court ruled that such
Trans-Missouri case, and that the
Eastern association contract was, in
legal effect, the same as the TRANSMITS
sCuri contract, and invalid for the same
reason
There is nothing new in the decision
of yesterday. The principle Of that de-
cision has been q declared law since
March, 1897.
The effect of the decision is that
railway companies are prohibited from
entering into contracts authorizing a
central body Or board, no matter how
appointed, to make ratss in advance,
which are to be adopted by all parties,
on the ground that such az arrange
ment is an unlawful restraint Of com
petition as respects interstate traffic.
It applies to all kinds Of associations,
passenger as we'll as freight, and it will
have a far-reaching influence in rail-
way circles
WAS A BUGBEAR.
President Mellen, of the Northern
Pacific, and President Stickney, of the
Chicago Great Western, are both in
New York. General Traffic Manager
Hannaford, of the Northern Pacific, ex-
pressed pleasure over the decision
Il never believed much in such asso-
Cations he said. They do little
good. The Joint Traffic association was
a bugbear rather than a real menace
to trade. It was organized for the pur-
pose of maintaining rates, but it did
not do it. It's intention was illegal, and
it accomplished nothing of real impor-
lance. I believe rates should be uni
form, but they will regulate them
selves. It is folly to suppose that one
railway between this city and Chicago
can get higher rates for freight or any
thing else than any of its competing
lines. The lowest rate must regulate
all. I believe, however, it is we'll for
railway men to get together and agree
to meet rates that are made and to do
the best they can to get them, bat for
all lines to decide upon certain rates
and say they shall not be higher or
lower is wrong. [ am pleased with the
decision because it agrees exactly with
my ideas of railway business"