The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-10-29
RULING OF SUPREME COURT
JOINT TRAFFIC CASE DEFINITE
LY SETTLES ALL POOLING.
Opinion of Solicitor General Richards
on the Result of the Decision
Just Handed
Down.
speelaI plspatch 70 The can.

WASHINGTON, Oct. 2S.-Soltcitor
General John K. Richards, who had
charge of the Governments side of the
Joint Traffic Association case before the
Supreme Court of the United States,
and whose brilliant argument, occupy
ing 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
opportunity to read it's 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, combination in the form of
trust or otherwise, or conspiracy in re-
straint of trade or commerce among
the several States The joint traffic
case clinches the decision in the trans
Missouri case, holding that the law APP
plies to railroads and prohibits all
agreements in restraint of interstate
trade and commerce, whether the re-
straint be reasonable in addition, it
holds explicitly that the law is consti-
tutional when thus applied, even to
reasonable agreements in restraint OF
trade.
1.-The constitutionality of the act was
not raised in the trans Missouri case,
but in the joint traffic case MIR.
Phelps directed his entire argument to
this point, urging that Congress could
not declare illegal and prohibit reason
able contracts. The freedom Of con-
tract guaranteed by the constitution
forbade it, he insisted. The answer Of
the court to this was that railroads en-
joy public franchises, they perform
public services and when engaged in
int Tot "a n Glrh n "a
regulations of Congress.
What the ultimate result of the de-
cision will be it is impossible to say.
Cases which establish important prin-
ctpleS usually affect, not simply courts,
but Legislatures, in a way one cannot
foresee. 1t is gratifying to believe that
the sentiment of the people against IN
furious monOpolies can find legitimate
expression through laws passed by their
representatives as enforced by the
court 1 know it has been and is in
sisted that competition destroys rates,
and railroads, too, but nevertheless
there is a settled sentiment among the
people against railroad monopolies and
in favor of unrestrained competition.
Most of the States, some in their con-
stitutions and some in their laws, have
prohibited the consolidation of Compel
ing lines Congress interstate act pro-
hibited pooling, which is simply one
keep up rates.
There are men of thought who insist
that regulation should supplant compe-
tition, but the people do not think 50
yet In fact, competition is the recog-
nized underlying basis of social and in
dustrial and political life in this coun-
try. Competition goes along with free
dom, with independent action. The
country was founded on the principles
of liberty and equality. It's founders
sought to secure to every citizen an
equal chance under the lava fair
showing in the race of life.
Under this decision, 1t is left to
open competition to secure reasonable
ness in rates. 1t is true the common law
requires that rates shall be reasonable.
So does 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 Commerce Com
mission power over rates. 1t has relied
upon competition to keep them fair.
Whether Congress will see fit to take
the railroads out of the operation of the
natural law of trade, and for independ-
ent competition substitute govern
mental regulation, remains to be seen"