The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1898-10-28
AGAINST THE ROADS
The Joint Traffic Association De-
clared to Be Illegal.
COMBINATION RESTRAINING TRADE.
The Federal Supreme Court Also Roles
That the Kansas city Live stock Ex-
change Does Not Come Under
tho Antitrust Tsw.

washington, Oct. 25.-The United
States supreme court yesterday decided
the Joint Traffic association railroad
case in favor OF the United States
against the railroads. The case is con-
sidered one of the most impor tant that
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 as
sociation was formed on November 10,
1895, by 81 railways, representing the
great trunk lines and their network of
branches The purpose of the associa-
ton, stated in the articles of agree
ment, was "to establish and maintain
reasonable and just rates, fares, and
regulations on state and interstate
traffic" A similar association, on a
smaller scale, was formed among south
western roads, known as the Trans
missouri association. These asso-
Citations were soon attacked in the
courts on the ground that they we're
in violation of the sherman antitrust
law and also of the intercommerce law.
The Transmissouri first reached the
United States supreme court, where, in
a notable opinion, the court held that
the association was illegal, being in
effect combination in restraint OF
trade and commerce, and therefore
violative of the antitrust law.
Although the Missouri case was
considered 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 Z, 1885, in the United
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
Diminishing the bill and the court of
appeals affirming the dismissal The
government appealed to the United
States supreme court An exceptionally
brilliant array of counsel appeared for
the association and several railroads,
including ex-senator Edmunds, James
C. Carter and +. j. Phelps. Solicitor
General Richards fled the brief for the
government. The main contention of
the government was that the traffic
agreement is a combination to prevent
competition, thus constituting a con-
tract in restraint of trade or COM
merce. The answer of the association
maintained the legality of the agree
ment, on the ground that the vast
needs of commerce require joint action
and that such action insures uniform
and just rates and prevents secret and
unjust discrimination.
Justice Peckman announced the de-
cision. He said that the court could
| distinguish no difference between this
and that of the Transmissouri case
decided year ago, which was decided
against the railroads He said the
only new point involved was as to the
| constitu tionality of the antitrust act
The court had reached The conclusion
that, as railroad corporations per-
formed duties of a semi-public charac-
ter, it was in the constitutional power
| of congress to regulate them as pro-
vided by the antitrust act. The only
| question then 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
KANSAS CITY LIVE STOCK EXCHANGE.
Washington, Oct. 25 The supreme
court Yesterday handed down an opin-
ion in the case against the Kansas City
Live Stock exchange. The govern
ment prosecuted under the anti. trust
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 country under the
control of a few rings and syndicates.
The association is carried on at the
Kansas City stock yards, partly in
Kansas and partly in Missouri.
Its members receive shipments of
cattle from Nebraska, Colorado, Tex
as, Missouri, Iowa, Kansas and the
territories, selling them to the large
packing-houses, particularly in Chi
cago, st. Louis and New York. The
lower court ruled against the ex-
change, on the ground that it was IL
combination in restraint of trade.
Justice Peckham's opinion, in whcih
all the court except Justice Harlan
concurred, reverses the lower court
and upholds the legality of the assoc
citation. The opinion states that the
Kansas City exchange is merely local
aid to interstate association. Because
the cattle themselves come from vari-
GUS states it does not follow, the opin-
ion states, that all persons performing
any service connected with them are
engaged in Interstate commerce.
similar ruling was made in the
case of the United States against j. C.
Anderson and others. involving the
Kansas City association known as the
Traders Live Stock exchange" In
this case, also, the court upholds the
association upon the ground that 1t is
purely local and not engaged in inter
state traffic within the meaning of the
antitrust law. Justice Harlan said
that If this particular combination
WAS not one In restraint of trade then